coverdell education savings account (cesa)
Details
The cost of college isn’t getting any cheaper. Tuition, books, housing and lab fees can quickly add up, and before you know it, you’re looking at one of life’s biggest expenses. The key is to start saving as soon as possible. With our Coverdell Education Savings Account, you can take advantage of a federally-sponsored savings program that offers a variety of benefits to parents. These include:
- Valuable tax benefits. Withdrawals are tax- and penalty-free for qualified educational expenses.1
- Family flexibility. Members can save up to $2,000 per child per year. Funds can be transferred from one child’s account to an account for another child in the family.
- No minimum opening deposit. You can start saving today!
- No service fees. College expenses are stressful enough without getting hit with fees and impossible requirements.
- Can be used in conjunction with other education plans. You can combine your CESA with other incentive programs such as 529 plans, and the Hope and Lifetime Learning credits.
- Federally-insured up to $250,000. Relax, your deposits are insured by the National Credit Union Administration (NCUA).
Where do you go from here? Check out our current rates by clicking the tab above, see how long it will take to save for your goals by clicking the “Calculator” banner below, or click the “Open an Account” button below.
 
1Consult your tax advisor. Although the funds you contribute are not tax-deductible, earnings on your investment are tax-deferred, and withdrawals of your contributions and earnings, under certain conditions, are tax-free after five years.
Rates
Coverdell Education Savings Rates
Effective April 1, 2012
| Coverdell Education Savings |
$25 |
0.15% |
0.15% |
Coverdell Education Certificate
12 to 23 months |
$2,000 |
0.55% |
0.55% |
Coverdell Education Certificate
24 to 35 months |
$2,000 |
0.60% |
0.60% |
Coverdell Education Certificate
36 to 47 months |
$2,000 |
0.90% |
0.90% |
Coverdell Education Certificate
48 to 59 months |
$2,000 |
1.20% |
1.21% |
Coverdell Education Certificate
60 months |
$2,000 |
1.50% |
1.51% |
| Balance required to earn dividends: $25 |
| Maintenance fee: $10 per year |
Have a question?
Call 818) 238.2900
Download current Truth-in-Savings disclosure (PDF).
*APY is Annual Percentage Yield.
Additional
| Balance required to earn dividends: |
$25 |
| Income limits: |
• Up to $110,000 for Single
• Up to $220,000 (combined) for Married |
| Restrictions: |
• Contributions not allowed after the beneficiary reaches age 18.
• Contributions are not deducted from taxable income.
• Coverdell ESA funds must be withdrawn when beneficiary reaches age 30 |
| Qualified education expenses: |
• Tuition
• Fees
• Books
• Computer equipment and technology required for elementary, secondary and post-secondary education
• Additional qualified expenses can be found at the IRS website
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1Consult your tax advisor. Although the funds you contribute are not tax-deductible, earnings on your investment are tax-deferred, and withdrawals of your contributions and earnings, under certain conditions, are tax-free after five years.
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UMe Federal Credit Union offers you 
Your savings federally insured to at least $250,000 and backed 