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Coverdell Education Savings

Help your child graduate college debt-free.

Are your kids college-bound? It’s time to start saving now.

The Coverdell Education Savings Account is designed to help you reduce education expenses so you won’t have to stress over a tuition bill when they turn 18.

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Reduce education expenses

The earlier you start to save, the less you’ll have to pay out of pocket later.

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Contribute up to $2,000 per tax year

It’s easy to start building your education savings fast.

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Take advantage of tax-free

Your earnings are completely tax-free. That means when it’s time to withdraw your savings to pay for school expenses, you won’t have to pay extra fees.

Today’s rates

Fixed-Rate Coverdell Education Savings Account

Fixed-Rate1

Min. to Open

Min. to Earn APY2

Dividend

APY2

1Early withdrawal penalties may apply. Rates subject to change without notice. Certificates will automatically renew upon maturity unless otherwise stipulated by the member. Fixed Certificate Account dividends are compounded and paid quarterly on the first day of the next dividend period. Must establish membership with Lafayette Federal Credit Union, or be an existing member. $50 minimum balance required to open and earn 0.10% APY2 on Lafayette Federal share savings account balances. $5 minimum balance required to open and earn 0.025% APY2 on LFCU checking account balances. 2APY=Annual Percentage Yield.

The rates and terms shown are effective as of July 1, 2024.

Fixed-Rate1

1-year term

Min. to Open

$500

Min. to Earn APY2

$500

Dividend

4.95%

APY2

5.04%

Fixed-Rate1

2-year term

Min. to Open

$500

Min. to Earn APY2

$500

Dividend

4.70%

APY2

4.78%

Fixed-Rate1

3-year term

Min. to Open

$500

Min. to Earn APY2

$500

Dividend

4.45%

APY2

4.52%

Fixed-Rate1

4-year term

Min. to Open

$500

Min. to Earn APY2

$500

Dividend

4.35%

APY2

4.42%

Fixed-Rate1

5-year term

Min. to Open

$500

Min. to Earn APY2

$500

Dividend

4.25%

APY2

4.32%

Variable-Rate Coverdell Education Savings Account

Variable-Rate1

Min. to Open

Min. to Earn APY2

Dividend

APY2

1Early withdrawal penalties may apply. Rates subject to change without notice. Certificates will automatically renew upon maturity unless otherwise stipulated by the member. Variable Certificate Account dividends are compounded and paid quarterly on the first day of the next dividend period. Must establish membership with Lafayette Federal Credit Union, or be an existing member. $50 minimum balance required to open and earn 0.10% APY2 on Lafayette Federal share savings account balances. $5 minimum balance required to open and earn 0.025% APY2 on LFCU checking account balances. 2APY=Annual Percentage Yield.

The rates and terms shown are effective as of July 1, 2024.

Variable-Rate1

18-month term

Min. to Open

$50

Min. to Earn APY2

$50

Dividend

4.30%

APY2

4.37%

Variable-Rate1

3-year term

Min. to Open

$50

Min. to Earn APY2

$50

Dividend

4.25%

APY2

4.32%

Variable-Rate1

5-year term

Min. to Open

$50

Min. to Earn APY2

$50

Dividend

4.00%

APY2

4.06%

Benefits

If you know how a Roth IRA works, then you have a pretty good idea of how an Education Savings Account works.

  • They both allow you to make an annual non-deductible contribution to a specially designated investment trust account.
  • Your account will grow free of federal income taxes
  • Withdrawals from the account will be completely tax-free
teen student

Ready to take the next step?

Get started now
Open online
Call us

Monday-Friday 8:30am – 4:00pm
Audio Response 24/7
301-929-7990
1-800-888-6560 (toll-free)

Visit a branch
Schedule an appointment

Disclosures

Your savings federally insured to at least $250,000 and backed by the full faith and credit of the United States Government. National Credit Union Administration, a U.S. Government Agency.