Coverdell Education Savings Account (CESA)
CESAs are trusts or custodial accounts for the purpose of paying
qualified education expenses for students up to age 30. Qualified
education expenses include tuition, fees, books, supplies, and
equipment.
The minimum deposit to open an account is $200. Individuals may
contribute up to $2,000 annually, based on income eligibility
requirements. Account holders may open one account per student; for
example, you could open three CESAs if you wanted to save for three
students. Contributions to CESAs are not tax-deductible. Tax
benefits include tax-deferred growth of earnings and tax-free
distributions when used for qualified education expenses.
Coverdell Education Savings Certificate
Select the term from 12 to 60 months and you can
generally earn a higher rate of return on a minimum deposit of $500.
The rate is fixed until maturity.
Additional Education Savings Options |
