Banking
Make Every Dollar Count

Plan a Bright Future with an Education Savings Account

Coverdell Education Savings Account

With a Coverdell Education Savings Account (ESA), you can make every dollar count toward increasing college tuition costs. Education Savings Accounts allow you to invest in the future and earn a competitive interest rate with certificates of deposit (CDs). Let State Farm Bank® help you save with confidence with our fixed-rate CDs available for 12 to 60 months. Earnings are tax-free if used for qualified education expenses1.

State Farm Bank deposit accounts are FDIC insured.

Find an Agent

To open your account, contact a State Farm® agent or call State Farm Bank at 877-SF4-BANK (877-734-2265). Callers who are hearing or speech impaired should dial 711 or use a preferred Telecommunications Relay Service.

Highlights

  • Open your education savings account today with as little as $500 and start earning interest¹
  • Multiple terms available, ranging from 12 to 60 months.
  • Interest compounded daily.

Planning for education expenses can never start too early. Open a Coverdell Education Savings Account CD today and secure your educational future. The growth (interest) is tax-deferred and can also be withdrawn tax-free if used for qualified education expenses.

Features and Benefits

  • Open your account today with as little as $500 and start earning interest
  • Multiple terms available, ranging from 12 to 60 months
  • Interest is compounded daily.
  • Automatic renewal at maturity so you can continue to earn interest through your grace period
  • Ten-calendar-day grace period after the maturity date to change the length of the term or withdraw funds without being charged a State Farm Bank penalty. You may also increase the amount in your ESA CD during the grace period.¹
  • FDIC insured up to applicable limits
  • For your convenience, distributions can be paid by check, deposited to a State Farm Bank account, electronically transferred to an account at another institution or wired. Fees may apply, refer to the Pricing Schedule for Consumer & Business Accounts for more details.

Account Eligibility

  • The individual(s) on the account must have a Social Security Number (SSN), Tax Identification Number (TIN), or Individual Taxpayer Identification Number (ITIN).
  • The account must be established for the benefit of a child (designated beneficiary) under the age of 18.

1 Refer to the Truth in Savings Disclosures for more details.

The Perfect Gift

1State Farm and its affiliates do not provide tax, investment, or legal advice. Federal and state tax laws are subject to change. If tax, investment, or legal advice is required, please seek the services of a licensed professional

State Farm Bank®, Bloomington, Illinois, is a Member FDIC and Equal Housing Lender. NMLS ID 139716. The other products offered by affiliate companies of State Farm Bank are not FDIC insured, not a State Farm Bank obligation or guaranteed by State Farm Bank, and subject to investment risk, including possible loss of principal invested. Contact State Farm Bank toll-free at 877-SF4-BANK (877-734-2265). Callers who are hearing or speech impaired should dial 711 or use a preferred Telecommunications Relay Service.

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