Education Savings Accounts

Education savings accounts (ESAs) are special accounts used to pay for education costs for your children. Insured and uninsured account options available.

Features

  • Yearly contributions can be made up to $2000 per year per child.
  • Contributions are not tax deductible, however distributions are tax-free if used for qualified school expenses.
  • ESA contributions are not affected by other IRA contributions.
  • Beneficiary may retain funds in the ESA until age 30.

Terms

  • 6 or 12 month variable rate accounts.
  • 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 or sales charges.
  • Same rates as IRAs.
  • Rates are available here.

Interest

  • Interest is generally compounded and credited quarterly on most ESAs.
  • Interest is paid during the term of the ESA and can be withdrawn without penalty. Interest renewed into a new ESA becomes part of the principal balance and is subject to penalty if withdrawn.
  • Interest rates and annual percentage yields (APYs) we advertise are based on the assumption that the interest will remain in the account until maturity. Interest paid is calculated using the daily balance method, which applies a daily periodic rate to the account each day.

Early withdrawal penalties

  • 90 day's interest on the 6 and 12 month variable rate, and the 1 year fixed rate ESA.
  • 181 day's interest on the 5 year fixed rate account.
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Insurance products are offered through Think Insurance (MN license # IA-538), not Think Mutual Bank. Insurance products are not FDIC insured, are not insured by any federal agency, and are not a deposit or guarantee of Think Mutual Bank. This is not a policy. For a complete statement of coverages and exclusions, please see the policy contract.

The Investment Professionals of Think Financial Planning are Registered Representatives and Investment Adviser Representatives with/and offer Securities and Advisory Services through Commonwealth Financial Network, Member FINRA/SIPC, a Registered Investment Adviser. Fixed insurance products and services offered by CES Insurance Agency. Investments are not FDIC insured, not bank guaranteed, not insured by any federal agency and may lose value. Check the background of this firm on FINRA's BrokerCheck. Think Financial Planning is headquartered at 5200 Members Pkwy NW, Rochester, MN 55901.

This information is provided for new customers who live or work in Minnesota, and for existing customers residing in the states of AR, AZ, CA, CO, FL, GA, IL, IN, IA, KS, KY, MA, MD, MI, MN, MO, MT, NE, NM, NV, NY, ND, NC, OH, PA, SD, TN, TX, UT, VA, WA, WI, WY. No offers may be made or accepted from any resident outside of these states due to various state regulations and registration requirements regarding investment products and services.