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Education Savings (Coverdell ESA)

A smarter way to save for your child’s education

College savings accounts offer tax benefits and investment options

Here's how a Coverdell Education Savings Account could help you bank better:

  • Works like an Individual Retirement Account, where you can start with a small sum and build up your balance with regular deposits
  • Parents can deposit up to $2,000 post-tax dollars a year until the beneficiary child turns 18, or the account can be transferred to another qualified beneficiary
  • Tax-free withdrawals when money is used for qualifying education expenses, like books, housing and tuition
  • ESAs also can be used to pay for private elementary school and high school tuition
  • Deposits can be invested in a wide range of financial products, all within your level of risk tolerance.
  • id AllySM : Our identity theft recovery program is included free with this product

It can be a real test to pay for college.

Education costs are skyrocketing, even for state schools. The only way for North Carolina residents to adequately prepare for the eventual sticker shock is to start saving during their child’s early years and keep at it.

Although there are several types of education accounts, at Coastal Credit Union we believe a Coverdell Education Savings Account should be part of your portfolio, whether your child is planning on attending one of the Triangle's distinguished colleges or heading out of state. You decide how to make deposits into the account – in one lump sum each year or little by little each paycheck. You decide where the money will be invested. And when the proud day comes when your child is headed off to college, you can feel good knowing the withdrawals to pay those first tuition bills are tax-free and you're reducing the amount of student debt to be faced after graduation.

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Frequently Asked Questions

Frequently, we see that direct deposits may not credit your account due to an invalid account number. Be sure to verify with the issuer of the deposit that they are sending funds with your full 14 digit account number. You may also provide the issuer of the deposit a voided check.

You may also want to validate the ABA Routing Number, 253175494.

Transferring funds is easy and free! Simply log into Digital Banking and select Transfer Funds. Follow the displayed prompts. Transfers may take up to 3-5 business days to credit.

You may also transfer funds from your Coastal account to another financial institution via a wire transfer. To initiate a wire transfer, please contact our Call Center at (800)868-4262, ext 6784 or 919-420-8000, ext 6784 or visit the nearest branch location.

Federal Regulations require us to have limitations on the number and types of withdrawals allowed on a savings account. Your savings accounts are limited to 5 teller withdrawals (this includes cash and official checks) per month. Any transactions in excess of 5 are charged a fee for each withdrawal. As an alternative, you can avoid this fee by performing a cash withdraw from your savings account at an ATM. It's good to know that ATM withdrawals from savings accounts do not count against your 5 monthly teller withdrawals, or the 6 monthly electronic withdrawals that are allowed by Federal Regulation D. Transfers made through Telephone Banking, Digital Banking, or our Transaction Call Center count towards the 6 monthly transactions allowed by Federal Regulation D. Any ACH (electronic) debits from savings count towards the 6 as well. Also, if a savings account is used for overdraft protection, then overdraft transfers from savings will also count towards the six transactions per month. If you find yourself coming close or exceeding your limits, you may want to consider a checking account at Coastal.

To set up a direct debit or credit to your account you will want to provide the ABA/Routing Number 253175494. If you have a checking account, please use the 14 digit number on the bottom of your checks. If you want to debit or credit another account with your Coastal account, please give us a call at 800-868-4262 or 919-420-8000. For security reasons, we will mail you the account details to set up direct debit or credit to your account.

If wiring U.S. Dollars, please provide the issuing institution the following instructions:

Bank Name: Coastal Credit Union
ABA/Routing Number: 253175494
Credit Name: (Your name and address)
Account Number: (Your 14-digit Coastal account number)

Please consult your tax advisor for additional tax information.

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