
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.
Reduce education expenses
The earlier you start to save, the less you’ll have to pay out of pocket later.
Contribute up to $2,000 per tax year
It’s easy to start building your education savings fast.
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-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-Rate Certificate Account dividends will be compounded and credited monthly on the last day of each calendar month. For example, dividends for January will be credited on January 31, giving you a more regular return on your deposits. 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 February 1, 2025. |
||||
Fixed-Rate1 1-year term |
Min. to Open $500 |
Min. to Earn APY2 $500 |
Dividend 4.05% |
APY2 4.13% |
Fixed-Rate1 2-year term |
Min. to Open $500 |
Min. to Earn APY2 $500 |
Dividend 4.00% |
APY2 4.07% |
Fixed-Rate1 3-year term |
Min. to Open $500 |
Min. to Earn APY2 $500 |
Dividend 3.85% |
APY2 3.92% |
Fixed-Rate1 4-year term |
Min. to Open $500 |
Min. to Earn APY2 $500 |
Dividend 4.00% |
APY2 4.07% |
Fixed-Rate1 5-year term |
Min. to Open $500 |
Min. to Earn APY2 $500 |
Dividend 4.20% |
APY2 4.28% |
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. VaVariable-Rate Certificate Account dividends will be compounded and credited monthly on the last day of each calendar month. For example, dividends for January will be credited on January 31, giving you a more regular return on your deposits. 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 February 1, 2025. |
||||
Variable-Rate1 18-month term |
Min. to Open $50 |
Min. to Earn APY2 $50 |
Dividend 3.60% |
APY2 3.66% |
Variable-Rate1 3-year term |
Min. to Open $50 |
Min. to Earn APY2 $50 |
Dividend 3.50% |
APY2 3.56% |
Variable-Rate1 5-year term |
Min. to Open $50 |
Min. to Earn APY2 $50 |
Dividend 3.20% |
APY2 3.25% |
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

Ready to take the next step?
Monday-Friday 8:30am – 4:00pm
Audio Response 24/7
301-929-7990
1-800-888-6560 (toll-free)