Coverdell Educational Savings Account

Save for your child’s future

With the cost of a college education skyrocketing, a savings plan is more important than ever. Plan for your child’s future with a Webster First Coverdell Educational Savings Account, or ESA, which allows you to withdraw funds tax-free for the specific purpose of funding your child’s educational expenses.

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About the ESA

  • Account is opened in a child’s name and features tax-free withdrawals for the specific purpose of funding the child’s educational expenses (qualified educational expenses)
  • Withdrawals must be made during the year in which the qualified educational expense occurred
  • Non-deductible contributions are limited to $2,000 per year, per child under 18 years of age
  • No annual fee
  • Terms and rates are the same as our IRAs

What is a qualified educational expense?

A qualified educational expense generally refers to tuition, books, fees, or other costs associated with qualified elementary, secondary, or post-secondary education expenses. In order to determine whether or not an expense is considered a qualified educational expense, we highly recommend you seek the counsel of a professional tax advisor and the educational institute.

How to open and access my ESA

  • To open a Coverdell ESA, please visit your local branch
  • Current Coverdell ESA holders wishing to access their account may do so in their local branch
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Why choose Webster First?

Smart money decisions are in our DNA

Webster First is one of the most well capitalized credit unions in Massachusetts as a result of our hard work and determination to make the best possible financial decisions. With our experience and dedicated team, we’re confident we can help you make the right financial decisions too.

Local, neighborly know-how

Our roots are in Massachusetts, opening our first branch in the small town of Webster back in 1928. Since then we’ve grown to over $1.2 billion with over 80,000 members who trust us with their banking. Since our banking team is locally grown too, they personally care about the success of their neighbors and community.

Authenticity you can trust

As New Englanders, we believe in being upfront and honest. You can expect straightforward answers to all your questions. Each relationship starts with trust and it’s the cornerstone of our acclaimed member service.