Children reading
2.22% APY

Deposit account

Education savings account

Minimum deposit


Investing in a child’s education is one of the greatest gifts you can give. A Coverdell ESA makes it a little easier to make that possible.

Eligible education expenses

Expenses can be either for higher education, elementary or secondary education. Eligible educational institutions include postsecondary, elementary and secondary schools. The designated beneficiary must be a member under age 18 or be a special needs person.

Coverdell ESA features:

  • No annual maintenance fees
  • Qualified distributions generally are tax-free
  • Low opening deposit of $25
  • Choice of an LGFCU Visa® Debit Card or ATM/Member Access Card
  • Funds are transferable to another child
  • Tax-deferred earnings
  • Tax-free withdrawals when used to pay for qualified education expenses
  • Early withdrawal exceptions
  • NCUA federally insured separately up to $250,000

Consult your tax advisor for additional information regarding the requirements and limitations on the Coverdell ESA.

Next Steps

Choose a way to request your Coverdell ESA.

Your resources: IRA Beneficiary Form