Education Savings Accounts

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.

See 7 Helpful Tips to Help Children Learn Healthy Saving and Spending Habits


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 0.50% 0.50% $1,000.00
12 Month ESA Certificate 0.75% 0.75% $1,000.00
18 Month ESA Certificate 0.90% 0.90% $1,000.00
24 Month ESA Certificate 1.50% 1.51% $1,000.00
36 Month ESA Certificate 1.60% 1.61% $1,000.00
48 Month ESA Certificate 1.75% 1.76% $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 December 1, 2017. All rates are subject to change without notice.