Coverdell Education Savings

Coverdell Education Savings

Tax breaks make this a smart savings account to cover tuition and other costs

Give your family's students a head start

Set aside money in Michigan for grade school, high school or college bills.

Get started early

Pitch in up to $2,000 a year to build a financial foundation for your favorite student.

Choice of saving tools

Funds can be deposited in Certificates of Deposit, savings accounts, or other investment options.

A family project

Parents, grandparents, aunts, uncles, and other relatives can all contribute to a young person's account.

Tax advantages

All annual interest earnings are tax-exempt and qualified withdrawals are tax-free.

The cost of attending college - as well as private elementary and secondary schools - continues to rise. The good news is there are ways to lighten the burden. With a Coverdell Education Savings Account (CESA) from Credit Union ONE, you can start setting aside money when your scholar-to-be is still a newborn or toddler. As the years pass, your savings will steadily grow with the help of steady interest payments and tax benefits.

  • Tax-free distributions when used for qualified education expenses, such as tuition, room and board, fees, supplies, tutoring, special needs services, and computer equipment and online access
  • Unused funds can be rolled into education accounts of other family members
  • Compatible with other education savings tools, such as 529 Plans
  • Deposits insured up to $250,000 per ownership category by the National Credit Union Administration (NCUA)
  • Consult your financial advisor for more detailed information

Credit Union ONE is a full-service financial institution with locations in Southeast Michigan, Davison, MI, Traverse City, MI, and Grand Rapids, MI.

Start your savings journey