An investment in education.

There’s no greater tool in life than an education. The flexibility of a Coverdell Education Savings Account (ESA)¹ makes it easy to start saving today. ESAs are designed to meet your needs as you provide the funds for a promising education. Comerica CD-ESAs provide investment alternatives with flexible terms, competitive rates and customized CD deposit options.

ESA features:

Your advantage^1,2,3

• Tax benefits combined with educational savings 
• Any child under 18 can be designated as a beneficiary 
• Tax-free distributions for qualified education expenses including elementary, secondary, and post-secondary tuition and vocational schooling 
• Hope and lifetime learning credits can be claimed in the same year as a tax-free distribution, if they are not used to fund the same expenses.

Your earnings^1,2,3

• Accumulate tax free 
• Are not taxed upon withdrawal from the account if they are used for qualifying educational expenses before the beneficiary’s 30th birthday

Your contributions^1,2,3

• Will earn interest at competitively priced rates
• Can be rolled over or transferred to another ESA to benefit another qualified family member
• Are not tax deductible 
• Annual limits may be adjusted by IRS for AGI and cost of living
• Can be made to multiple accounts for multiple beneficiaries as long as the total contributions to all accounts on behalf of a beneficiary in any year does not exceed $2000.
• Are FDIC insured up to the maximum allowed by law

Your distributions^1,2,3

•  Are tax free as long as they are used for qualified education expenses  

• Can be used for qualified expenses, including:  tuition, room and board, fees, supplies, books, educational computer technology or equipment, uniforms, tutoring, special needs services, and internet access

• Are mandatory (and could be taxed) following the beneficiary’s 30th birthday

¹ Investing in a Coverdell Education Savings Account (ESA) does not guarantee that college costs will be met. Contributing to an ESA does not impact your eligibility to contribute to a Traditional, Roth, SEP or SIMPLE IRA.

² Comerica Bank and its affiliates do not provide tax or legal advice. Please consult with your tax and legal advisors regarding your specific situation

³ Additional detail can be found in the Master Terms of Coverdell Education Savings Custodial Accounts