Coverdell Educational Share Certificate

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.

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.

There is a 10-business day grace period from the date of maturity (end date).

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.

Yes, there is a 10-business day grace period from the open date or date of maturity in which the term can be changed.

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.

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.

In order to open the ESA account, we must have the child’s social security number.