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What Can DCU Save You?

Coverdell Education Savings Account

A tax-friendly way to save toward your child's education

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  • Details
  • Rates
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Coverdell Education Savings Accounts

  • For children under 18 at the time of account opening
  • Contribute up to $2,000 a year
  • Earn money federally tax free
  • Multiple savings options
  • Federally insured to $250,000 by NCUA

Please refer to Details and Rates tabs for additional information and important disclosures.

Coverdell Education Savings Account Details

  • For children under 18 at the time of account opening – This is one way a family can collectively save for a child's qualified education expenses.
  • Contribute up to $2,000 per year – This is the maximum annual contribution per beneficiary no matter how many Coverdell accounts are set up for them. Contributions are not tax deductible.
  • Earn money federal tax free – Distributions are tax free as long as they do not exceed the beneficiary's qualified education expenses for the year. Visit IRS.gov for more details.
  • Multiple savings options– All DCU's IRA programs may be used for Coverdell Education Savings Accounts:

  • Federally insured to $250,000 by NCUALearn more about insurance on all your savings at DCU and how to maximize your coverage.

For more information

The Retirement Central Service Center is an easy way to complete your IRA forms. Simply answer some questions regarding the transaction you wish to complete and the Service Center will produce the necessary forms.

If you have any questions, or need paper forms, please speak with a Member Service Representative at your nearest DCU branch or call our Information Center at 508.263.6700 or 800.328.8797, weekdays from 8:00 am to 9:00 pm and Saturdays from 9:00 am to 3:00 pm, Eastern time.

Certificate IRA Rates*

Certificates IRA Rates – Minimum balance of $500 is required to open your account.
May be used for Traditional, Roth, SEP, and SIMPLE accounts and Coverdell Education Savings Accounts.
TERMS / FEATURES OUR BEST RATES
  Dividend Rate Annual Percentage Yield
60 months 1.84% 1.86%
48 to 59 months 1.59% 1.60%
36 to 47 months 1.40% 1.41%
24 to 35 months 1.25% 1.26%
12 to 23 months 1.10% 1.11%
6 to 11 months 0.70% 0.70%
3 to 5 months 0.60% 0.60%

Rates are effective .

*Dividend rates shown are for members who qualify for Relationship benefits on their DCU Checking Account. Without Relationship benefits, you'll earn .25% less than dividend rates shown above.

IRA Certificate Account rates are subject to change weekly; but the rate will remain in effect for the term of the certificate once issued. Funds earn dividends from the first business day of deposit through the day of withdrawal, are compounded daily, and posted monthly. "Penalties" apply for early withdrawals. Refer to DCU's Truth-in-Savings Disclosures and Account Agreements, Schedule of Fees and Service Charges and Certificate Account Disclosure and Agreement.

Money Market IRA Rates*

$1,000 minimum balance to earn dividends.
May be used for Traditional, Roth, SEP, and SIMPLE accounts and Coverdell Education Savings Accounts.
Balance Tiers Dividend Rate Annual Percentage Yield
When daily balance is $100,000.00 or more 0.90% 0.90%
When daily balance is $50,000.00 to $99,999.99 0.85% 0.85%
When daily balance is $25,000.00 to $49,999.99 0.75% 0.75%
When daily balance is $10,000.00 to $24,999.99 0.65% 0.65%
When daily balance is $1,000.00 to $9,999.99 0.55% 0.55%

Rates are effective .

*Rates are subject to change weekly. Funds earn dividends from the first business day of deposit and are compounded daily and posted monthly. Accrued dividends are forfeited if account is closed prior to monthly dividend posting. Fees or other conditions may reduce earnings. Refer to DCU's Truth-in-Savings Disclosures and Account Agreements and Schedule of Fees and Service Charges.

Savings IRA Rates*

May be used for Traditional, Roth, SEP, and SIMPLE accounts and Coverdell Education Savings Accounts.
Minimum and Terms Dividend Rate Annual Percentage Yield
No Minimum Balance 0.20% 0.20%

Rates are effective .

*Rates are subject to change weekly. Funds earn dividends from the first business day of deposit and are compounded daily and posted monthly. Accrued dividends are forfeited if account is closed prior to monthly dividend posting. Fees or other conditions may reduce earnings. Refer to DCU's Truth-in-Savings Disclosures and Account Agreements and Schedule of Fees and Service Charges.

Annual Percentage Yield (APY) is a figure calculated using a federally-mandated formula. It's designed to help you compare the return you'll get in a uniform way between the certificate, savings, and money market accounts offered at various institutions. It tells you at what percentage your money will grow in one year at the same dividend rate – including the effects of compounding. For example, the APY on a 6-Month Certificate would be what you earned at the end of a year if you renewed your certificate once, did not add to or subtract from the balance along the way, nor withdrew any dividends.

Open or Manage a DCU Coverdell Savings Account

Related Services and Tools

  • IRA Service Center – Open new DCU Coverdell Accounts and IRAs, manage your existing Coverdell Accounts and IRAs, and get practical ideas on Coverdell Accounts and retirement.
  • Student Loans – There are several ways to fund higher education. This page explains a few of the options including Government Student Loan programs.
  • StreetWise IRA Guide – General information explaining how Individual Retirement Accounts and Coverdell Education Savings Accounts work and what your options are.
  • DCU Memorial Scholarship Program – Each Spring, DCU members who are graduating high school can apply for one of twelve scholarships awarded each year.
  • StreetWise Parents' Guide – Provides a number of tips and resources related to your child's college education.
  • Truth in Savings Disclosure – (.pdf format) Covers disclosures related to all DCU savings and checking accounts. DCU's Funds Availability Policies are covered here.
  • Funds Availability Policy – An availability schedule associated with deposits made to your DCU Account.
  • Certificate Application and Disclosure – (.pdf format). Allows you to open a DCU Certificate by mail downloading and printing this form.
  • Electronic Services Disclosure –(.pdf format) This covers disclosures related to DCU electronic services such as Check Cards, ATM Cards, Internet Online Banking, and Easy Touch Telephone Teller system.
  • Schedule of Fees and Service Charges