Accounts

Coverdell ESA

Looking for options to save for your child's educational expenses? This account, formerly known as an Education IRA, is one to consider in either a Savings or Certificate options. Contributions are not tax-deductible, but your withdrawals (including earnings) are tax-free if used for tuition, books and other qualified educational expenses.

Your tax advisor can guide you on whether a Coverdell ESA is your best option. Of course, Credit Union staff are always here to answer your questions and assist in opening your accounts.

Rates
Benefits

Rates

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IRAs/ESAs¹05/24/2013
	Dividend Rate	Annual Percentage Yield
IRA/ESA savings	.45%	.45%
¹The rate is accurate as of specified date. Variable rate may change after account is open.

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Certificates¹05/24/2013
3 months	Dividend Rate	Annual Percentage Yield
$1,000 - $9,999.99	.20%	.20%
$10,000 - $24,999.99	.25%	.25%
$25,000 - $49,999.99	.30%	.30%
$50,000 - $99,999.99	.30%	.30%
$100,000 +	.35%	.35%
6 months
$1,000 - $9,999.99	.25%	.25%
$10,000 - $24,999.99	.30%	.30%
$25,000 - $49,999.99	.35%	.35%
$50,000 - $99,999.99	.35%	.35%
$100,000 +	.40%	.40%
1 year
$1,000 - $9,999.99	.35%	.35%
$10,000 - $24,999.99	.40%	.40%
$25,000 - $49,999.99	.45%	.45%
$50,000 - $99,999.99	.45%	.45%
$100,000 +	.50%	.50%
2 years
$1,000 - $9,999.99	.45%	.45%
$10,000 - $24,999.99	.50%	.50%
$25,000 - $49,999.99	.55%	.55%
$50,000 - $99,999.99	.55%	.55%
$100,000 +	.60%	.60%
3 years
$1,000 - $9,999.99	.65%	.65%
$10,000 - $24,999.99	.70%	.70%
$25,000 - $49,999.99	.75%	.75%
$50,000 - $99,999.99	.75%	.75%
$100,000 +	.80%	.80%
4 years
$1,000 +	.90%	.90%
5 years
$1,000 +	1.00%	1.00%
¹Minimum opening balance is $1,000. A penalty may be imposed for early withdrawal. Rates are accurate as of specified date and are subject to change.

Benefits

Qualified withdrawals are tax-free
Withdrawals can be for education expenses from elementary school through college
Can be transferred to another family member if not used before the student is 30
Funds are under the account holder's name, and have no impact on financial aid eligibility
Deposits insured up to $500,000

Save the right way for every phase of your loved ones' educational expenses!

Coverdell ESA

Rates

Benefits

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