Begin your child's education fund with a Coverdell Education Savings Account (CESA), which features tax-free withdrawals to educate students under age 30. You may contribute up to $2,000 annually per student, until 18 years of age. We also offer CESA certificates with terms from 12 to 60 months that earn at a higher rate.
CESAs may be opened for one or more students. Some CESAs offer tax deferred earning when distributions are used for education purposes. You can apply these savings to pay for tuition, fees, books, supplies, equipment and more.
Coverdell Education Savings Account
Minimum opening deposit: $200
Tax-deferred earnings: Yes
Earns Dividends: Yes¹
Tax-Free Distributions: Yes²
Additional benefits: Withdrawals may be used for K-12 expenses as well as for college. Beneficiary may have more than one account in his or her name.
Important notes: Account may be withdrawn until the beneficiary reaches age 30. Choose from terms of 12 to 60 months. The rate is fixed until maturity. Dividends are compounded and paid monthly. Dividends are earned from the date of deposit to the date of withdrawal. Refer to the Savings or Certificate Initial
The features and requirements of a CESA include:
- A $200 minimum deposit. You may contribute up to $2,000 per child per year.
- Eligibility varies depending on the income level of the contributor.
- Nondeductible contributions.
- Tax-deferred earnings.
- Distributions are typically tax-free.
- Withdrawals may be used for K-12 expenses as well as for college.
- Beneficiary may have more than one account in his or her name.
- Account may be withdrawn until the beneficiary reaches age 30.
- Choose from terms of 12 to 60 months. The rate is fixed until maturity.
For more options on saving for college, please visit Travis Financial Services.
Account Summary How to Open an Account Check Rates
1, 2: See Account Disclosure for current rates.