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Education savings account

Education Savings Accounts (ESAs) are specialized accounts designed to help you save for your children's education expenses. ESAs provide a secure way to fund tuition, books, and other educational costs, ensuring your child has the financial support they need for a successful academic journey.








Education Savings Account

Ideal for parents and guardians looking to save for their children's future educational expenses while benefiting from tax-free growth on qualified withdrawals. 











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Features

  • Contribution Limits: Make yearly contributions of up to $2,000 per child.
  • Tax Benefits: While contributions are not tax-deductible, distributions are tax-free when used for qualified educational expenses.
  • IRA Independence: ESA contributions do not affect your other IRA contributions.
  • Beneficiary Flexibility: Funds in the ESA can be retained until the beneficiary turns 30.

Terms

  • Account Options: Choose from 6 or 12-month variable rate accounts, or 1- or 5-year fixed rate accounts.

Minimum deposit

  • Variable Rate ESA: $10 with automatic transfer.
  • Fixed Rate ESA: $250.

Fees and rates

  • No Service Fees: Enjoy no service fees or sales charges.
  • Competitive Rates: ESAs offer the same rates as IRAs.
  • View Rates: Click here for current rates.

Interest

  • Compounding: Interest is typically compounded and credited quarterly on most ESAs.
  • Withdrawals: Interest earned during the term can be withdrawn without penalty. If interest is renewed into a new ESA, it becomes part of the principal balance and is subject to penalties if withdrawn.
  • Interest Calculation: The advertised interest rates and annual percentage yields (APYs) assume that interest will remain in the account until maturity. Interest is calculated using the daily balance method, applying a daily periodic rate to the account.

Early withdrawal penalties

  • Variable Rate and 1-Year Fixed Rate: A penalty of 90 days' interest applies for early withdrawals.
  • 5-Year Fixed Rate: A penalty of 181 days' interest applies for early withdrawals.























Questions?

Call us at 1-800-288-3425 or visit a branch office in Apple Valley, Eagan, Edina or Rochester. No appointment needed. 

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