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Coverdell Education Savings Account

Invest in your child’s future with a tax-free college savings account.

A Coverdell Education Savings Account (ESA) provides strategic advantages to maximize your child’s college savings. Benefits of opening an ESA include:

Tax-free growth

Watch your child’s college savings increase in value without taxes eroding any potential gains.

Contribution Flexibility

Anyone can contribute to an account on behalf of a beneficiary under 18.

Tailored Approach

Manage your account’s investments to meet your financial goals and risk preferences.

Key ESA Account Features

Maximize your child’s college savings with these key Coverdell ESA account features:

  • Tax-free growth – Earnings grow tax-deferred, and withdrawals are tax-free for qualified education expenses.
  • Annual contributions – Up to the IRS maximum can be contributed annually from your account.
  • Flexible usage – Your child can use the funds for elementary, secondary, and higher education expenses.
  • Broad expenses – Covers tuition, books, fees, supplies, computers, tutoring, and more.
  • No opening minimum – Open an account today and start saving whenever you’re ready.
  • Easy online access – Monitor your account and manage funds digitally 24/7.

Saving for college is one of the most important investments you can make in your child’s future. Our Coverdell ESA makes it easy to maximize your tax-free college savings. 

Open an account online today and start building for a better tomorrow.

See Our Coverdell ESA Rates

Rates Accurate as of October 13th, 2023.*

IRAMinimum Balance/RangeAnnual Percentage Rate (APR)Annual Percentage Yield (APY)
Traditional IRA
Roth IRA
Educational Savings IRA
$5.00 - $9,999.990.05%0.05%
$10,000.00 - over0.25%0.25%

*Rates subject to change at any time and without prior notice. Fees may reduce earnings.


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– Michael C., Newville, PA.


“I have been a Belco member for nearly 10 years. Best experience I’ve ever had. I get my paycheck a day earlier than my coworkers, overall service is great, the Visa Rewards program is awesome, and the Safari Savings Club is great for the kids. Can’t imagine ever banking anywhere else.”

– Brian., Camp Hill, PA.


“David, the manager of the Gettysburg Branch, is an exceptional customer service associate!! He went out of his way to help me with my banking question. Thank you David!!”

– Lesa P., Gettysburg, PA.

Why Open an ESA at Belco Community Credit Union?

Open Now, Fund Later

You can open an ESA account today and contribute money at a later date.

Easy to Set Up

Quickly open your account online in a few minutes or drop by one of our branches.

Personalized Service

We provide expert guidance tailored to your child’s educational goals.

Compounded Dividends

Enjoy monthly compounded dividends and watch your account balance grow over time.

Mobile and Online Banking

Monitor your account and add funds via our easy-to-use mobile app or online portal.


Gain peace of mind knowing the NCUA insures your ESA account for up to $250,000.

Take the Next Steps to Secure Your Child’s Education

Coverdell ESA FAQs

Who can contribute to a Coverdell ESA?

Any individual with a modified adjusted gross income (MAGI) less than the annual limit, including the designated beneficiary, can contribute to a Coverdell ESA. Organizations like corporations and trusts can also contribute regardless of their income level.

Can we use Coverdell ESA funds for elementary and secondary school expenses?

You can use it for qualified elementary, secondary, and post-secondary education costs. This includes tuition, books, supplies, and certain room and board expenses.

What happens to the Coverdell ESA if the beneficiary does not use the funds for educational expenses?

You must distribute the balance if the beneficiary does not use the funds by the time they’re 30. It will also be subject to tax and potentially a 10% penalty. However, the account can be transferred to another family member under 30 to avoid these consequences.

More Ways to Save and Earn With Belco

Basic Savings

A $5 deposit is all it takes to open a Share Savings Account and take advantage of the many Belco membership benefits.

Certificate Accounts

A Share Certificate is a smart way to grow your savings. The $500 minimum investment lets you earn higher returns over 3 months to 5 years.

Money Market Accounts

Experience greater yields than standard savings accounts.  Begin with an initial deposit of $250!