Coverdell Education Savings

Give the student in your life the gift of quality education—and the gift of graduating with limited debt. When you contribute to a Coverdell Education Savings Accounts for your student, you can budget and plan for major educational expenses, while taking advantage of tax benefits and earned interest. 

Key Features

Coverdell Education Accounts are specially designed to make saving for college and other educational expenses simple and affordable.

Tax advantages: Your contributions and earnings grow tax-free, and pay no taxes and distributions for qualified education expenses.
Flexibility: Can be used for a variety of educational expenses for students of all ages, from elementary to higher education. Use funds to cover tuition, fees, books, supplies, and in some cases, room and board.
Budget-friendly: Deposit up to $2,000 per year per child under the age of 18 to affordably grow your education savings over time. 
Investment options: Open a Coverdell Certificate of Deposit at F&M Bank, combining the tax advantages of a Coverdell ESA with the secure, fixed returns of a CD.

How to Open an Account

Coverdell Education Savings Accounts can be opened for any student in your life, whether they are a child, grandchild, or other important person. Apply to open an account online or in person. To open an account you’ll need:

The beneficiary’s Social Security Number and personal information.

Your Social Security Number and personal information.
Opening deposit.

New to Coverdell ESAs?

To ensure your account is tailored to you and your student’s unique needs, we recommend consulting with one of our experienced bank representatives.

Visit Us to Learn More or Apply Online

Looking for a tax-advantaged education savings plan in Virginia? Our Coverdell ESA can provide you with an cost-effective and simple way to save for your loved one’s education, offering tax-free earnings and distributions. 

Opening a Coverdell Education Savings Account is easy and convenient at F&M Bank. Apply to open your account online or visit your local branch today for personalized advice and one-on-one service. 

The income limits for eligibility to contribute are:

Single Filer

Full $2,000 contribution if your AGI is less than:	Less than or equal to: $95,000
Partial contribution if your AGI is between:	$95,000 – $110,000 no contribution if over $110,000

Married Filing Jointly

Full $2,000 contribution if your AGI is less than:	Less than or equal to: $190,000
Partial contribution if your AGI is between:	$190,000 – $220,000 no contribution if over $220,000

	Full $2,000 Contribution if your AGI is less than:	Partial Contribution if your AGI is between:
	Full $2,000 Contribution if your AGI is less than:	Partial Contribution if your AGI is between:
Single Filer	Less than or equal to: $95,000	$95,000 – $110,000 no contribution if over $110,000
Married Filing Jointly	Less than or equal to: $190,000	$190,000 – $220,000 no contribution if over $220,000
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