Saving for College: Get Started Now with a Coverdell Education Savings Account! | Town & Country Credit Union

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Town & Country Credit Union

Town & Country Credit Union

System Upgrade: Branches Closed & No Online Access

We are undergoing a System Upgrade from 7 p.m. on Friday, Feb. 26 until Tuesday, Mar. 2. We're upgrading our internal system as well as TCCU Online and our mobile app. We've taken steps to make this as painless as possible fr you, but unfortunately, some inconveniences are unavoidable. 

During this time: 

  1. All branches, including the Contact Center, will be closed Saturday, Feb. 27 - Monday, Mar. 1. We will reopen regular hours on Tuesday, Mar. 2. 
  2.  TCCU Online and our mobile app will also be unavailable from 7 p.m. on Friday, Feb. 26 - Monday, Mar. 1.
  3. Your debit and credit cards will still work during this time, but there will be a $1,000 total daily limit for debit card purchases and ATM withdrawals.
  4. When you log in to TCCU Online or the mobile app for the first time, you're going to use your current username and a temporary password. Members, you received this information in the System Upgrade guide mailed to you. 

Thank you for your understanding while we upgrade to serve you better. Learn more about the System Upgrade here. 

  • System Upgrade

    We're Upgrading
    February 27-March 1

    Find out what you need to know.

    LEARN MORE

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    Join us Tuesday,
    March 16 at Noon

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Saving for College: Get Started Now with a Coverdell Education Savings Account!

Whether your child is two or twelve, the time is always right to start saving for college! While college may seem years away, believe us when we say it’ll be here before you know it. And with the costs of college tuition rising, you’ll be thankful for your child’s college savings account when it’s time to pay tuition.

At Town & Country Credit Union, we offer a Coverdell Educational Savings Account (ESA) to help with saving for college. Here’s what you should know:

Coverdell Education Savings Account

  • Similar to an IRA (Individual Retirement Account).
  • Designed for children under the age of 18 for higher-education expenses.
  • Minimum deposit of $500 required to open.
  • Interest is calculated daily and paid out monthly. To view current interest rates, click here.

Qualified Expenses & Withdrawals

Earnings on the Coverdell ESA are tax free if used for both private or public college education expenses and primary and secondary school expenses. Qualified expenses include tuition and fees, books, supplies and equipment required along with room and board. Any withdrawals for non-qualified education expenses may be subject to penalty.

Contributions Limits

The contribution limit for an ESA is $2,000 per year, per beneficiary meaning if your child has two accounts, the combined contributions on both accounts cannot exceed $2,000 per year. The funds from the account must be used by the time the child reached age 30 and no contributions can be made after their 18th birthday.

There are income restrictions to consider for both individuals and married couples contributing jointly. When your income reaches a certain point, your contribution limit per year will drop from $2,000 until it phases out entirely. To qualify to make investments in an ESA, an individual taxpayer’s gross income cannot exceed $110,000 and the income limit for married couples contributing jointly is $220,000.

Other Savings Options

In addition to the Coverdell ESA, here are two common savings tools to consider for your child’s education:

CDs: A Certificate of Deposit allows you to earn a higher dividend rate than a regular savings account or money market account while choosing a term length that works for you. At Town & Country, we have a wide variety of terms to select from, all with above market rates. To learn more, click here.

529 Savings Account: The Bank of North Dakota offers another tax-advantage savings vehicle to help put money away for your child’s education. To learn more about the program, click here.

What’s Next?

Since there are plenty of savings options out there, we recommend talking to a Town & Country representative to determine which savings plan is best for your child.  There is much to consider, including tax implications, income guidelines, maximum annual contributions and more, before opening an education savings account for your child. To schedule an appointment, call 1-800-872-6358 or start your application online by clicking the button below, and we'll reach out to you. 

To learn more about the other products and services we offer for kids and young adults, view our recommended financial timeline, click here.

Get Started button

 

 

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