Educational IRA CD—Coverdell Education Savings Account
With the cost of education on the rise, an Educational IRA CD is a smart investment. You can use funds in an Educational IRA CD for any educational expense.
Contributions must be deposited before the beneficiary's 18th birthday, and funds must be used by the beneficiary’s 30th birthday. Unused funds may be transferred to a qualified beneficiary.
- Tax exemption on qualified distributions
- $100 opening deposit
- $2000 maximum annual contribution
- Automatically renewable with a 10-day grace period
- Earns interest daily
- Interest posts to CD at maturity (annually if 12 months or longer)
- Funds may be withdrawn at any time, tax-free, for educational needs
- CD penalty for early closure
To open an Educational IRA CD, visit your favorite i-bank branch.
Contact i-bank for CD options and current interest rates and annual percentage yields.
Terms: You must deposit at least $1,000 to open this account. The interest rate for this account is fixed. Your interest rate and annual percentage yield may change at our discretion. Interest will be compounded annually. Interest will be credited annually. We use the daily balance method to calculate the interest on your account. This method applies a daily periodic rate to the principal in the account each day. A penalty will be imposed for withdrawals before maturity. This account will automatically renew at maturity. This account will not renew if you withdraw the funds on the maturity date or if we receive written notice from you on or before the maturity date of your intention not to renew. Each renewal term will be the same as the original term, beginning on the maturity date. The interest rate will be the same as the current rate being paid on this type of product.
Another great i-bank option to consider for your student is the UTMA/Minor Savings Account. Talk to us to determine which tools are best for your family’s goals.
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