Coverdell Education Accounts
Set your student up for success
It's never too early to start saving for education expenses. Whether you're a parent, grandparent, or family friend, make sure the student in your life will have the funds they need when they need them - with our Coverdell Education accounts:
- Education Savings Account
- Education Certificate of Deposit (CD) allows you to lock in a guaranteed rate of return with a choice of terms from 1 month to 5 years.
Here’s how they work:
- Contribute up to $2,000 each year by April 15th for the previous year. The contribution is not tax-deductible, and adjusted gross income limits apply.1,2
- Funds grow tax-deferred, so your money can grow faster.
- Withdrawals are not taxed when used to pay for qualified education expenses - like tuition and fees, room and board, or books, supplies and equipment.
- The balance must be used or transferred to another beneficiary before the student turns age 30 to avoid taxes.
- The beneficiary on the account can be changed.
1. The beneficiary must be under age 18 in the year of contribution unless he or she meets special needs requirements.
2. The contributor's adjusted gross income can be no more than $110,000 for single filers or $220,000 for joint filers. You have until April 15 of the following year to contribute for the previous year.