Coverdell Education Savings - East County Schools Federal Credit Union
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Education Savings Accounts (ESAs)

Coverdell ESA's are Custodial Accounts Set Up to Pay for Qualified Education Expenses K - College/University/Vocational School

  • Formerly known as an Education IRA
  • Accounts can be open for any child under 18, and must be withdrawn by the time the student reaches age 30*
  • $2,000 in contributions per year per child is allowed until the child reaches age 18 and do not count against the contributor's  limit for IRAs
  • Parents, grandparents, other relatives and friends may contribute to Coverdell ESAs. Income limitations apply.
  • Withdrawals (including earnings) are tax-free when used for qualifying elementary, high school, and post-secondary education expenses **
  • Withdrawals for non-qualifying expenses are taxable as income and may have a 10% penalty
  • Prior to beneficiary reaching age 30, funds may be rolled over to a Coverdell Education Savings account for another eligible family member
  • Contributions are not tax-deductible, but they earn interest tax-free until distributed
  • The deadline for making a 2020 contribution is April 15, 2021

* Accounts for beneficiaries with special needs generally are not subject to the age restrictions on contributions and withdrawals.

** Expenses include tuition, fees, books, supplies, computers, tutoring, and in some cases room and board, uniforms, transportation and more, at virtually all accredited, public, nonprofit, religious, and private institutions.

ESA Investment Options*

ESA Savings Account

  • $5 minimum deposit requirement
  • ESA Savings Account balances may be transferred to an ESA Certificate Account

ESA Certificate of Deposit (CD) Account

  • 3 month to 60 month certificates are available
  • Minimum purchase amounts of $1,000; or any amount above this minimum
  • Generally term-length and balance driven: The longer the term, the higher the rate. The higher the balance, the higher the rate.

*As with any investment that will affect your taxes, and to find out if you are eligible to contribute, consult your tax advisor.

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Members LoveECSFCU!

  • Cathy Sprecco with Koala - Australia 2015

    I had a fantastic trip to Switzerland and Austria this past summer with East County Schools FCU and the SD East County Chamber of Commerce. This was my 6th trip with this fun group! The Educator Tour, guided by the infamous Steve Devan, is the perfect way to truly see and experience any country. The train ride through the Alps was a personal favorite and such an amazing experience. Seeing and hearing cows and goats with real bells grazing on the side of the mountains made me want to sing a favorite "Sound of Music" song and look for Heidi or her grandpa around every turn! I really felt immersed in the culture. The extra servings of warm apple strudel helped too!

     I am a single traveler and all worries are put aside on these well-coordinated trips. Almost everything is taken care of for the travelers so I always feel spoiled! The fellow Educator Tour travelers that I have met from other districts and other walks of life have become my life-long friends! These trips are so dear to me that I have a separate savings travel account where I dedicate a small monthly amount to be ready for the next country!

    Come join us!

    Cathy Sprecco - First Grade Teacher in Lakeside Union School District