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Education Savings

Your child or grandchild’s education is important, and depending on where their future takes them, it can also be expensive. With a Coverdell Education Savings Account (ESA), you can get a head start on saving for college now. The account is designed to offer tax advantages when you use the money for elementary, secondary or college education costs.

Who can contribute?

 

Anyone can contribute to a Coverdell ESA, including a child’s parents, grandparents or other friends and family. The person contributing must have a modified adjusted gross income (MAGI) of less than $110,000 (or $220,000 if filing jointly).

What are the contribution limits?

 

Total contributions to a Coverdell ESA cannot exceed $2,000 per child, per tax year. Contributions can be made until the beneficiary reaches age 18, unless the beneficiary has special needs and additional time is required to complete his or her education due to a physical, mental or emotional condition.

Open an IRA

Open a Coverdell ESA

Need help getting started with your college savings plan? Visit a local branch or contact Honda Federal Credit Union at 1-800-634-6632.

See the Current Interest Rate

More Ways You Can Save

 
Savings Certificates

Step up your savings and earn higher interest rates with a certificate of deposit. Choose a fixed term of 6 months, 1 year, 2 years, 3 years or 5 years. Read more

 
Money Market Accounts

Earn high-yield money market rates while maintaining easy access to your funds when you open a money market account. Read more

 
IRAs

Compare traditional and Roth IRAs and start building your retirement savings nest egg. Read more

Your Funds Are Insured
The National Credit Union Administration (NCUA), an agency of the federal government, insures funds deposited at Honda FCU up to $250,000. Honda FCU insures an additional $250,000 through the American Share Insurance (ASI), a private insurance company.

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