Education Savings (Coverdell ESA)

Save for Your Child’s Future

The Coverdell Education Savings Account (ESA) is a custodial account designed to help families save money to pay for a child’s education expenses from kindergarten through college.

Coverdell (ESA) 0.70% APY

Based on income requirements, contributions can be:

  • Make up to the current maximum per year for the designated beneficiary (child)
  • Made if beneficiary is under the age of 18 (or beyond for special needs)
  • Transferred to IRS defined qualified family members if not used by beneficiary
  • Earning generous dividends from Alliant

What Your ESA Savings Can Pay For

Contributions and earnings are tax- and penalty-free, if used for qualified education expenses, which include:

  • Tuition and fees
  • Books and supplies
  • Computer equipment to be used for education
  • Transportation
  • Room and board—only in some cases
  • ESA information center

To qualify for an ESA, the child must be a member of Alliant with a minimum deposit of $5 in a regular savings account.

APY = Annual Percentage Yield. View Disclosures

Frequently Asked Questions

Where do I send checks for deposit to my Alliant ESA Account?

Mailing Address
Alliant Credit Union
Attn: IRA/HSA Dept.
P.O. Box 66945
Chicago, IL 60666-0945

Overnight Service
Alliant Credit Union
Attn: IRA/HSA Dept.
11545 W. Touhy Avenue
Chicago, IL 60666
773-462-2291

How much will I be able to save per year with an ESA account?
You can save up to $2,000 per child per year, based on income requirements. Also your earnings grow tax free if distributions are used to pay for qualified education expenses.

How is an ESA different than a 529 plan?
There are many differences, but a chief feature is how the funds can be used. Unlike many state-sponsored Section 529 plans, an ESA can be used to pay for qualified elementary and secondary education expenses at most public, private, and parochial schools.

I would like to start an ESA for my grandkids. Can I do that?
As long as you meet the income requirements, anyone including grandparents, aunts, uncles, even family friends can open and contribute to a child’s account. However, one parent or legal guardian must be listed as the responsible individual on the ESA.

Check our fee schedule.

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