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.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, an ESA allows you to grow your education savings tax-free.

Features:

  • Access funds when you need them

  • Earn tax-free if used for qualified education expenses

  • Contribute money anytime2

APY3

as high as

0.25%

Term

None

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 anytime2

APY3

as high as

0.55%

Term

None

Minimum Deposit4

as low as

$0


Education Certificates

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 amounts2

APY5

as high as

3.50%

Term

3 Months to 7 Years

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.


Coverdell ESA 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.

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.

Contribution Limits

$2,000 a year per child

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.

A 529 Plan, available in most states, allows families 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

Earnings are tax-deferred, and withdrawals for qualified education expenses aren’t subject to federal taxes.

Contribution Limits

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.



Learn MoreLearn more about Coverdell ESAs and 529 plans.

Get Started Planning Your Child's Future

Meet with the financial advisors at Navy Federal Financial Group6 to understand how much you need to save and what options—including 529 plans—are available to help you meet your goals.

Call Navy Federal Financial Group at 1-877-221-8108.

Want More Information About Saving?

Explore our resources at Navy Federal's Savings Learning Center.

Learn More Visit the Savings Learning Center.

Savings Resources

View More Savings Resources

Disclosures

1 Please consult a tax professional for more information.

2 Additional deposits can be made up to the maximum annual deposit amount of $2,000 per child per year.

3 Rates on variable accounts (e.g., Share Savings, Checking, MMSA) may change after the account is open. This APY is accurate as of 09/19/2020. Fees may reduce earnings.

4 A $2,500 minimum balance must be maintained to earn dividends.

5 This APY is accurate as of 09/19/2020. 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.

6 Nondeposit investment and insurance products are offered through Navy Federal Financial Group, LLC (NFFG) and through its subsidiary, Navy Federal Brokerage Services, LLC (NFBS), a member of FINRA/SIPC and an SEC registered investment advisory firm. Brokerage and advisory products are offered through NFBS. These products are not NCUA/NCUSIF or otherwise federally insured, are not guaranteed or obligations of the credit union, are not offered, recommended, sanctioned, or encouraged by the federal government, and may involve investment risk, including possible loss of principal. 1-877-221-8108. Trust Services available through MEMBERS Trust Company. 1-855-358-7878.