It’s never too early to start your child on the path to financial success. With a Young Savers Account*, your child can start saving for their future while learning money management skills. As a parent, you can make transfers to your child’s account with ease through Digital Banking. Don’t stop there! Take an active role in teaching your child about dividends, compound interest, making deposits or withdrawals, and checking the balance.
Benefits of Young Savers
The Coverdell Education Savings Account was created to help parents pay for a child’s education at any level – from kindergarten through high school and beyond.
A CESA allows a maximum annual contribution of $2,000. Consider the earning potential of this account: If you contribute the maximum for a newborn child every year until the child is 18, earning an estimated average investment rate of 6.00%, the account will grow to $70,000.
Contributions to a CESA are tax-free, as are withdrawals, however, you are not able to get a tax deduction on your contributions. Consult a tax advisor for details.
*Young Savers Account available for children under 18 years of age who qualify for membership. Upon age 18, the Young Savers Account funds will be automatically transferred to a Share Savings Account. Account must be opened for a child, grandchild, or other family member under the age of 18 using their Social Security number. Family member or legal guardian must have Justice Federal membership for minor to be eligible for this account.