Education Savings Accounts

Coverdell ESA Plans

Education expenses don’t seem as daunting 
when you have a smart savings plan.

Coverdell Education Savings Plans: Smart Savings

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A Coverdell ESA is a savings account that is opened in a child’s name to help save for education-related expenses.

  • Anyone can contribute, including parents, guardians, relatives and friends.
  • Total annual contribution limit (all sources combined) is $2,000 per year.
  • Contributions may be made until the child reaches age 18.
  • Funds in the account grow tax-free.
  • No tax on distributions if they are less than the beneficiary’s qualified education expenses at an eligible institution.
  • Funds must be used by age 30 or transferred to an ESA benefitting another child in the family.


Coverdell ESA Accumulator Savings Accounts

Affinity's Accumulator accounts work like a regular savings account but with tax-saving benefits.

Open An Account
  • Minimum deposit required: $50
  • Competitive dividend rates and zero risk
  • Can be transferred to a Certificate for greater returns once account balance reaches $500
  • Early withdrawal penalties apply

Coverdell ESA Certificate Accounts

These Certificate Account options give you a guaranteed rate of growth with great flexibility.

Open An Account
  • Minimum deposit required: $500
  • Must be opened with ESA funds
  • Term restrictions apply; must rollover to an ESA account after maturity
  • Early withdrawal penalties apply