Coverdell Education Savings Account (CESA)

It's never too early to start saving for your child's education - let us help you get started

VISIT A BRANCH
Daughter at park

Product Features & Benefits

  • Choose from a savings or a wide range of CD terms

  • Tax-free earnings on after-tax dollars and tax-free withdrawals for qualified education expenses1

  • Rollover of unused account funds, without penalty, to other family members under age 30

  • Ability to contribute until the beneficiary turns age 18 (anyone may contribute to a CESA, limit of $2,0002)

Take the Path to Financial Success

ASB Financial Wellness screenshot

Get Started

Free financial education courses, available on desktop and mobile

Financial Checkup screenshot

Financial Checkup

Take our real-time assessment to see where you're at

Calculators screenshot

Calculators

Use our helpful tools to prepare for your next milestone

Common Questions:

Saving at Any Age Thumbnail

Saving at Any Age
 

Saving is an important step toward overall financial health. From a child’s first account to retirement planning, good savings habits can help you t...

Read More >

How to Deal With the Financial Impacts of a Job Loss or Pay Cut Thumbnail

How to Deal With the Financial Impacts of a Job Loss or Pay Cut

Unemployment is at an all-time high due to economic impacts of the COVID-19 pandemic. In August 2020, Hawaii had the country’s highest “insured...

Read More >

Your Money During Turbulent Times Thumbnail

Your Money During Turbulent Times
 

As economic concerns over COVID-19 continue to grow, you might find yourself wondering if a bank account is the best place to keep your cash. When...

Read More >

  1. Withdrawals are tax and penalty free if used for qualified education expenses. Funds must be fully withdrawn when the beneficiary reaches age 30, and any amounts not used for qualified education expenses are subject to an additional 10% tax penalty.
  2. Based on an IRS formula, the allowed contribution is reduced when AGI (adjusted gross income) exceeds these limits.