Coverdell Education Savings Accounts (ESAs) offer attractive benefits for all U.S. residents planning to save for education expenses—kindergarten through college.

College Savings Bank, a Division of NexBank SSB ESA Plans are a safe way for individual taxpayers to establish and Account for children under the age of 18 to save for a child's education. We offer all of our innovative certificates of deposit (CollegeSure, InvestorSure, Fixed Rate CDs) through an ESA account.

A Coverdell ESA is appropriate for investors seeking:

• Tax-deferred accumulation of interest; 
• Tax-free withdrawals for education expenses; 
• Shelter from financial aid considerations; and 
• Asset control.

What you should know about Coverdell ESAs:

• Assets can be used for kindergarten through college education expenses; 
• You can contribute to both a Coverdell ESA and a 529 college savings plan on behalf of the same beneficiary as long as assets are not used to pay for the same qualified expenses.
• Single incomes under $95,000 and joint incomes under $190,000 may contribute up to $2,000 annually per beneficiary until the child reaches age 18. Non-deductible contributions grow tax-free and distributions are tax free for qualified education expenses. The contribution limit is gradually reduced for single individuals with incomes between $95,000 and $110,000 (between $190,000 and $220,000 for married taxpayers filing jointly). 
• Although no earned income is required to open an ESA, individuals who earn amounts above the maximum levels may not contribute. However, a child (beneficiary) who meets the income restrictions may contribute to a Coverdell ESA.
• To qualify for the tax benefit, distributions generally must be used to cover the child's tuition, fees, room and board at an eligible higher education institution, elementary school or secondary school.

Coverdell ESA brochure, literature and forms are conveniently available in Literature and Forms