Coverdell Education Savings

Prepare for your child’s college education with an account that makes saving easy and allows qualified withdrawals tax-free.

  • Make contributions until your child reaches age 18
  • Distributions for college expenses are tax-free
  • Transfer funds to another child as needed
  • Up to 2.50% APY with dividends paid monthly
  • Funds federally insured up to $250,000

Note: These accounts are designed to save for college. For other options, explore certificate and IRAs.


Get Them Thinking About College

If you’re ready to start saving for your child’s college education, open a Coverdell Education Savings account. Contributions that will be used for college expenses can be made until your child reaches the age of 18. While contributions are not deductible on state or federal income tax, earnings accumulate tax-free. Contributions may be made by any individuals, including grandparents or other family members to assist with college savings.

Note: Deposits to your Coverdell Education Savings account are limited to $2,000 per beneficiary from all sources per year. There is an exception for contributions resulting from a rollover. Contributions are also subject to income restrictions. For the latest information on Coverdell Education Savings income restrictions and contribution rules, call our Member Service Center at (210) 258-1234 or toll free at 1-800-688-SACU (7228).


Options for Withdrawal

Withdrawals for qualified college expenses are tax-free and can be made without penalty at any time. Qualified expenses include tuition, fees, tutoring, books, supplies, related equipment, room and board, uniforms, transportation, and computers. In addition to higher education expenses, elementary and secondary education expenses may also qualify. Funds must be distributed to your beneficiary by the age of 30, or you can transfer funds to another beneficiary as needed.

Note: If you do not distribute or transfer funds within the required timeframe, funds are taxed as ordinary income plus a 10% penalty.

Get Help from SACU

Opening a Coverdell Education Savings account is easy — we’re here to help. Be sure to understand the options in order to choose the best savings or investment product for you. For more information, call our Member Service Center at (210) 258-1234 or toll free at 1-800-688-SACU (7228).

Note: Select the Coverdell Savings account based on the rules and regulations in place at account opening. Keep in mind that these rules may be changed by Congress at any time.

Your Insured Funds

SACU Coverdell Education Savings accounts are insured separately up to $250,000 by the National Credit Union Administration(NCUA), a U.S. Government Agency. Similar to deposit insurance coverage offered by the FDIC for banks, the NCUA operates the National Credit Union Share Insurance Fund (NCUSIF) to protect accounts at federally insured credit unions.

More Details:  Account type and ownership factor into coverage amounts. Read up on NCUA Share Insurance (PDF) to maximize your coverage, estimate your coverage online, or call our Member Service Center at (210) 258-1234 or toll free at 1-800-688-SACU (7228) for further information on your insured funds.

Join SACU and become a member today

Share Certificate

Ready to work towards a savings goal? Consider a savings certificate with flexible terms you choose.

Liquid Share Certificate

Want to build savings with an easy, one-year commitment and more flexible access to your funds? Try a savings certificate designed to keep you liquid.

SACU Rate Preferred Visa®

Look no further for a no annual fee credit card with great rates.

Line of Credit

An SACU Line of Credit allows you to make an advance to yourself anytime up to your pre-approved line of credit limit.

Coverdell Education Savings Rates

Account BalanceDividend RateAnnual Percentage Yield
$0.00 - $9,999.990.15%0.15%
$10,000.00 - $89,999.990.35%0.35%
$90,000.00 and up0.40%0.40%
Account BalanceDividend RateAnnual Percentage Yield
$0.00 - $9,999.991.09%1.10%
$10,000.00 - $89,999.991.19%1.20%
$90,000.00 and up1.19%1.20%
Account BalanceDividend RateAnnual Percentage Yield
$0.00 - $9,999.991.29%1.30%
$10,000.00 - $89,999.991.29%1.30%
$90,000.00 and up1.29%1.30%
Account BalanceDividend RateAnnual Percentage Yield
$0.00 - $9,999.991.29%1.30%
$10,000.00 - $89,999.991.44%1.45%
$90,000.00 and up1.44%1.45%
Account BalanceDividend RateAnnual Percentage Yield
$0.00 - $9,999.991.59%1.60%
$10,000.00 - $89,999.991.59%1.60%
$90,000.00 and up1.59%1.60%
Account BalanceDividend RateAnnual Percentage Yield
$0.00 - $9,999.991.98%2.00%
$10,000.00 - $89,999.991.98%2.00%
$90,000.00 and up1.98%2.00%
Account BalanceDividend RateAnnual Percentage Yield
$0.00 - $9,999.992.28%2.30%
$10,000.00 - $89,999.992.28%2.30%
$90,000.00 and up2.28%2.30%
Account BalanceDividend RateAnnual Percentage Yield
$0.00 - $9,999.992.47%2.50%
$10,000.00 - $89,999.992.47%2.50%
$90,000.00 and up2.47%2.50%

Rates are effective as of January 13, 2017

A penalty will be imposed for early withdrawal, including substantial penalties on tax-deferred instruments.

Includes Traditional, Roth, and Education IRAs.

SACU IRA share certificates are available with a minimum deposit of $500.

The variable rate may change after the account is opened. Fees could reduce the earnings on these accounts.

Balance tier determines daily dividend rate and annual percentage yield on the daily account balance.

Actual certificate dividend rate and annual percentage yield (APY) will be based on the dividend rate in effect on date of deposit. Dividend rates are fixed unless otherwise stated. The annual percentage yield assumes that dividends remain on deposit until maturity. A withdrawal of dividends will reduce earnings. Published rates and annual percentage yields (APYs) are subject to change daily.

Your SACU investments are insured up to at least $250,000 by the National Credit Union Administration (NCUA), as a U.S. Government Agency. In addition, your SACU IRA investments are insured, separately, up to $250,000 by the NCUA. Membership eligibility required. For current rates, APY, or additional information, please ask an Account Service Representative or call the SACU Member Service Center U.S. Toll Free at 1-800-234-7228 or in San Antonio at 210-258-1234.