Coverdell Education Savings Accounts (ESAs)

Coverdell Education Savings Accounts (ESAs)

ESAs (formerly known as Education IRAs) are flexible accounts that allow you to save for a child's qualified educational expenses, including college, private high school tuition, and after-school tutoring. Even relatives and friends can contribute to an ESA for your child.

Contributions are not tax-deductible, but earnings accumulate tax-free, and distributions are tax-free if they are used to meet qualified education expenses. (Please consult your tax advisor for more information on the rules for ESAs.)

ESA certificates require a minimum deposit of $1,000. ESA Share Accounts may be opened with as little as $15, with ongoing contributions added to your account through direct deposit.

To open an ESA just stop by either our East Longmeadow or Springfield branch.

Coverdell Education Savings Account (ESA) Rates and Terms

Account Type Dividend Rate APY** Minimum Balance to Open and Earn Dividend
ESA* Share Account 0.10% 0.10% $15.00
6-month ESA Certificate 0.65% 0.65% $1,000.00
12-month ESA Certificate 1.15% 1.16% $1,000.00
18-month ESA Certificate 1.35% 1.36% $1,000.00
24-month ESA Certificate 1.60% 1.61% $1,000.00
36-month ESA Certificate 1.85% 1.87% $1,000.00
48-month ESA Certificate 2.10% 2.12% $1,000.00

*ESA is Education Savings Account.
**Annual percentage yield.
Rates may change after the account is open. Fees could reduce the earnings on the account.
There is a substantial penalty for early withdrawals on ESA Certificates.

Rates are effective August 1, 2019. All rates are subject to change without notice.