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Education Savings Accounts

Save for any level of education.

Your child or grandchild’s education is important, but it can also be expensive. With a Coverdell Education Savings Account (ESA), you can save for elementary, secondary or college education costs. Invest the money 100% tax free when funds are used for qualified withdrawals.

Learn more about how to pay for higher education.

ESA Features

  • 0.25% APY1
  • $5 minimum deposit
  • Contribute up to $2,000 per tax year.
  • Withdraw funds any time.2
  • Can transfer funds to a Coverdell Education Savings Certificate once balance reaches at least $500.
  • Make contributions until the beneficiary reaches 18.3
  • Anyone can contribute to a Coverdell ESA, including a child’s family and friends.4
education savings image

Need help opening an account?

Visit a local branch or contact Honda Federal Credit Union at 1-800-634-6632.

college fund piggy bank

Calculate Education Expenses

Plan for your child’s future with this online savings calculator.

1 APY = Annual Percentage Yield. Terms and conditions subject to change. Rates may vary.

2 Non-qualified distributions must be reported on the account owner’s or the beneficiary’s federal income tax return and is subject to income tax.

3 Contributions can be made past age 18 if the beneficiary has special needs and additional time is required to complete their education due to a physical, mental or emotional condition.

4 Any individual whose modified adjusted gross income is under the limit set for a given tax year can make contributions. Organizations, such as corporations and trusts can also contribute regardless of their adjusted gross income.