Coverdell Education Saving Account (ESA)
Start saving for your child’s educational expenses.
Set Aside Money Now for Their Future
Planning for the costs associated with higher education now can make for a brighter future later. One way to get started is to open a Coverdell Education Saving Account (ESA).
What is a Coverdell ESA?
Tax-advantaged
Similar to a Roth IRA, Coverderll ESA contributions are made from post-tax earnings so any interest withdrawn is tax-free.1
Age Limit
All funds must be used for educational purposes by the time the student is age 30.
Contribution Amount
You can contribute up to $2,000 per year, per beneficiary.
Coverdell ESA Options
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Coverdell ESA Savings
Coverdell ESA Savings
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Coverdell ESA Certificate of Deposit (CD)
Coverdell ESA Certificate of Deposit (CD)
Minimum Balance
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Coverdell ESA Savings
None
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Coverdell ESA Certificate of Deposit (CD)
$1,000
Annual Maintenance Fee
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Coverdell ESA Savings
$10/plan
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Coverdell ESA Certificate of Deposit (CD)
$10/plan
Withdrawals
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Coverdell ESA Savings
May be subject to IRS early-withdrawal penalties
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Coverdell ESA Certificate of Deposit (CD)
May be subject to IRS early-withdrawal penalties and Seattle Credit Union interest penalties
IRA Rates
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Minimum Opening Deposit |
APY* |
|---|---|
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Effective as of February 19th, 2026. Interest is compounded and credited quarterly. Account transfer and withdrawal limitations apply. |
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Minimum Opening Deposit $5 |
APY* 0.20% – 0.20% |
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Term |
Rate |
APY* |
Bump Option |
|---|---|---|---|
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Effective as of February 19th, 2026. $1,000 minimum deposit to open an IRA CD. All rates are subject to change without notice. APY* – Annual Percentage Yield. Early withdrawal penalty will reduce earnings on the account. Your account will automatically renew as stated on your Truth-in-Savings Disclosure, Account Receipt, or Renewal Notice. Our Bump Eligible certificates allow members to choose once during the term of the certificate to “bump” their rate, you may request that the rate be increased to the current offered rate of certificates of deposit of the same term length. |
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Term 6 month |
Rate 3.30% |
APY* 3.35% |
Bump Option Not Eligible |
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Term 1 year |
Rate 3.40% |
APY* 3.46% |
Bump Option Not Eligible |
|
Term 2 year |
Rate 3.45% |
APY* 3.51% |
Bump Option Eligible |
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Term 3 year |
Rate 3.45% |
APY* 3.51% |
Bump Option Eligible |
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Term 4 year |
Rate 2.60% |
APY* 2.63% |
Bump Option Eligible |
|
Term 5 year |
Rate 2.60% |
APY* 2.63% |
Bump Option Eligible |
Disclosures
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Seattle Credit Union is not a tax advisor and does not provide tax advice. Consult a licensed tax professional to determine how your personal tax situation affects your ability to contribute to a Coverdell ESA. Distributions may be subject to IRS early-withdrawal penalties. Withdrawals from Coverdell certificates may be subject to Seattle Credit Union early-withdrawal penalties. Penalties may reduce principal.