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Saving for College Education Expenses

Top five advantages of saving for elementary, secondary and post-secondary education expenses.

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The Advantages of a Coverdell Education Savings Account

Jump-Start Your Child’s Education Fund.

It’s never too early to prepare for the future. Start a college education fund with MTC Federal Credit Union.

An MTC Federal Coverdell Education Savings Account (ESA) can help you save for a child’s education expenses such as tuition, fees, books, supplies, equipment, and in some cases, room and board required for elementary, secondary and post-secondary education.

Top 5 Advantages:

  • Minimum opening deposit $250
  • Make non-deductible contributions that provide the potential for tax-free withdrawals.
  • Anyone, family or non-family member can contribute.
  • Contribute up to $2,000 per year, per child.
  • Make contributions until child reaches age 18.

What are qualifying expenses?

Qualified higher education expenses include:

  • Tuition and fees, books, supplies, and equipment that are required for enrollment.
  • Room and board (subject to limits) for students enrolled at least half-time.
  • Computer technology, equipment, Internet access, and related services used by the student during any of the years the student is enrolled.

Qualified elementary and secondary education expenses include:

  • Tuition and fees, books, supplies, and equipment, academic tutoring, and special needs services incurred in connection with enrollment or attendance.
  • Room and board, uniforms, transportation, and supplementary items required or provided by school in connection with attendance or enrollment.
  • Computer technology, equipment, Internet access, and related services used by student and student’s family during any of the years the student is enrolled.
Answers to Frequently Asked Questions

Here’s a look at how your MONEY can GROW with a Coverdell ESA:

Coverdell ESA Savings


The money you set aside today can make a big difference tomorrow for a brighter future.

Have questions? To speak to a Member Service Representative about our IRA products call 1-800-442-7792 or Schedule an Appointment.

Open an Account Today

*Annual Percentage Yield (APY). All Credit Union programs, rates, terms and conditions are subject to change at any time and without notice. Consult your tax advisor. Other restrictions may apply.