Coverdell Education Savings - East County Schools Federal Credit Union
Skip to main content

Online Banking

Open An Account  |  Apply For A Loan

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  • Accounts can be open for any child under 18, and must be withdrawn by the time the student reaches age 30*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.

Savings Rates

Financial Education

Financial Foundations

 Could you use an easy explanation of the basics? These short, understandable lessons will help you to make better decisions related to managing your money. Titles include: Checking Accounts, Car Loans, Preventing Overdraft Fees, Credit Cards, Mobile and Online Banking and Why You Should Pay More than the Minimum Balance on your Credit Card.

Financial Foundations Articles

Building Financial Capacity

Adulting can feel overwhelming at times! Select from short but comprehensive modules on Creating a Budget, Credit Scores & Reports, Taxes: the Basics, Healthy Financial Habits, Debt Management, Identity Protection and How to Start Family Conversations about Money.

Building Financial Capacity Articles

Owning a Home

Home Ownership can feel overwhelming. Talk to us any time, but these articles will also educate you about the benefits and costs of all aspects of owning a home. Learn about Buying a Home, Mortgages, Mortgage Relief, Investment Property, Reverse Mortgages and Refinances.

Owning a Home Articles

Investing in Your Future

Are you prepared for college tuition, one of life's emergencies or a comfortable retirement? Explore important financial planning topics like 529 plans, Emergency Savings, Health Savings Accounts, Sustainable Investing, IRA's, Estate Planing, and the FIRE Lifestyle.

Investing in Your Future Modules

Preparing for Retirement Modules

Members LoveECSFCU!

  • Kevin Miller original headshot-01

    Kevin Miller likes to connect good people to great resources. He’s been an enthusiastic fan of East County Schools Federal Credit Union since 2013 when we were known to the education community as Grossmont Schools Federal Credit Union, more than five years ago. “Every person I’ve referred to ECSFCU has raved about the lower rates, better terms and great treatment they get.” From amazing auto loan rates to 0% interest classroom loans, he says, “There has never been a dropped ball or bad experience for anyone I’ve ever referred to ECSFCU.”


    Kevin Miller - Administrative Pastor of Foothills Christian Church