Education Savings Options
Saving for Education
Whether you’re looking to set aside funds for primary, secondary or higher education, we offer a number of options that can help you reach your education savings goals faster.Footnote 1
Benefits
- Grow savings tax-free
- Use for qualified K-12 and higher education expenses
- Supplement with a 529 Plan
Explore Our Accounts
Education Savings Account (ESA)
Perfect for early and long-term savers, a Navy Federal Coverdell Education Savings Account (ESA) allows you to earn dividends and grow your education savings tax-free.
Features:
- Access funds when you need them
- Earn tax-free if used for qualified education expenses
- Contribute money anytimeFootnote 2
Minimum Deposit
as low as
$0
Education Money Market Savings Account
With an ESA Money Market Savings Account (MMSA), you get all the perks of a basic savings account but with higher rates—meaning the greater your balance is, the greater your earnings will be.
Features:
- Access funds when you need them
- Enjoy high dividend rates
- Earn tax-free if used for qualified education expenses
- Contribute money anytimeFootnote 2
Education Standard Certificate
ESA Certificates allow you to craft your education savings plan by earning at a locked-in rate for your choice of term length.
Features:
- Enjoy high dividend rates
- Variety of term lengths
- Earn tax-free if used for qualified education expenses
- Flexible contribution amountsFootnote 2
Minimum Deposit
as low as
$50
Explore Education Savings Options
All of Navy Federal's education savings plans are Coverdell ESAs. See how they compare to 529 plans in the chart below.
| Contribution Limits | 529 Plan |
|---|---|
| Coverdell Education Savings Accounts (CESA), formerly known as Education IRAs, allow you to make contributions to a tax-advantaged investment account to be used for qualified K-12 and/or college expenses. | A 529 Plan, available in most states, allows famliies to invest and grow savings tax-deferred, and then later withdraw those savings tax-free if used toward qualified K-12 and/or college expenses. |
| How Funds Grow/Tax Benefits | |
| Funds in these accounts grow tax-free, and withdrawals are tax-free when used for qualified education expenses before the beneficiary reaches age 30. | Earnings are tax-deferred, and withdrawals for qualified education expenses aren’t subject to federal taxes. |
| Contribution Limits | |
| $2,000 a year per child | Contribution limit is dependent on the state that operates the 529 plan. Maximum limits range from $235,000 to over $500,000. |
| Eligible Expenses | |
| College expenses include: tuition, fees, books, room and board, and educational computer technology expenses just like with the 529 plan, but also include academic tutoring, special needs services, uniforms and transportation. | College expenses include: tuition, fees, books, room and board, and educational computer technology expenses. |
Want More Information About Saving?
Explore our resources at Navy Federal's Savings Learning Center.
Savings Resources
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College Savings Accounts
Understand the difference in college savings tools with our comparison of ESAs, 529 Plans, Custodial Accounts and Prepaid Tuition.
Learn More about College Savings Accounts -
College Savings Calculator
Develop or fine-tune your education savings plan with our College Savings Calculator.
Learn More about College Savings Calculator -
Savings Rates
Check out our competitive rates on all Navy Federal savings products.
Learn More about Savings Rates
Disclosures
Consult with your tax advisor.
↵Contributions can be made up to the maximum annual deposit amount of $2,000 per child per year.
↵Rates on variable accounts (e.g., Share Savings, Checking, MMSA) may change after the account is open. This APY is accurate as of 06/28/2025. Fees may reduce earnings.
↵A $2,500 minimum balance must be maintained to earn dividends on MMSA accounts.
↵This APY is accurate as of 06/28/2025. This APY is an annualized rate that reflects estimated earnings based on the dividend rate and frequency of compounding. Dividends compounded daily, credited monthly. Penalties may apply for early withdrawals from certificate accounts. Offering rates may change.
↵Navy Federal Financial Group, LLC (NFFG) is a licensed insurance agency. Non-deposit investments, brokerage, and advisory products are only sold through Navy Federal Investment Services, LLC (NFIS), a member of FINRA/SIPC and an SEC-registered investment advisory firm. NFIS is a wholly owned subsidiary of NFFG. Insurance products are offered through NFFG and NFIS. These products are not NCUA/NCUSIF or otherwise federally insured, are not guaranteed or obligations of Navy Federal Credit Union (NFCU), are not offered, recommended, sanctioned, or encouraged by the federal government, and may involve investment risk, including possible loss of principal. Deposit products and related services are provided by NFCU. Financial Advisors are employees of NFFG, and they are employees and registered representatives of NFIS. NFIS and NFFG are affiliated companies under the common control of NFCU. Call 1-877-221-8108 for further information.
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