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 your child's increasing college tuition costs. Education Savings Accounts allow you to invest in your child's 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 expenses.

Find an Agent

To open your account, contact a State Farm® agent or call State Farm Bank® at 877-SF4-BANK (877-734-2265).

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 child's 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 The growth (interest) is tax-deferred and can also be withdrawn tax-free if used for qualified education expenses.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 investment term or withdraw funds without being charged a penalty. You may also increase the amount in your ESA CD during the grace period.¹
  • This account is FDIC insured.
  • For your convenience, interest payments can be added to the CD, paid by check, deposited to a State Farm Bank account, or electronically transferred to an account at another institution.

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.

The Perfect Gift

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