Coverdell Educational Certificate Accounts
MINIMUM INITIAL DEPOSIT: $1000
|ACCOUNT||ANNUAL PERCENTAGE YIELD||COMPOUNDING PERIOD|
*A penalty will be assessed for early withdrawal
All rates are subject to change without notice. For the most up-to-date rates, please call Member Services at 800.877.4444. The Annual Percentage Yield (APY) stated for all accounts is accurate as of the date listed. Annual Percentage Yield assumes deposits, and dividends paid, are held to maturity. Penalties may be applied for early withdrawal on term accounts. Fees could reduce actual earnings. Refer to “Terms and Conditions” for other account information.
Information accurate as of January 5, 2021.
“The best time to plant a tree was 20 years ago. The second best time is now.” – Chinese Proverb (edited)
Frequently Asked Questions
What can a Coverdell Educational Share Certificate be used for?
- This type of account should be used for higher education expenses, as well as some K-12 expenses.
- Eligibility may include tuition and fees, books, supplies, and equipment that are required for enrollment
Can I open a Coverdell Educational Share Certificate as a standalone account?
You must have a Coverdell Educational Savings Account (ESA) with a $50 opening deposit and a Shares Regular Savings Account with an opening deposit of $5 for the ESA (and to establish membership) in addition to the Coverdell Share Certificate with the minimum opening $1,000 deposit.
Is there a withdrawal period when the term is over?
There is a 10-business day grace period from the date of maturity (end date).
What happens if I don’t withdraw the money during the withdrawal period?
Certificates automatically roll into a new certificate of the same term at the current Annual Percentage Yield (APY) unless otherwise disclosed or the member makes changes to the Share Certificate.
Can I change the term of my Share Certificate after opening?
Yes, there is a 10-business day grace period from the open date or date of maturity in which the term can be changed.
Can I add money after it is opened?
Yes, there is a 10-business day grace period from the open date or date of maturity in which additional money can be added.
Is there a penalty for an early withdrawal?
Yes, if you make a withdrawal from your certificate before the maturity date, a penalty will be charged. The penalty is based on the term.
Who is in charge of the account?
Every Education Savings Account (ESA) must have a “responsible individual” who oversees the account, directs the investments within the account, decides when to withdraw the money, and decides if and when to transfer or roll over the assets to another eligible family member’s ESA. Generally, the responsible individual is the child’s parent or legal guardian. The child may serve as the responsible individual after becoming an adult.
Can I open an ESA before my child is born?
In order to open the ESA account, we must have the child’s social security number.