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ADDITIONAL BENEFITS
Excellent Service
PenFed was founded for our defense community, so we know a thing or two about service.
Safety & Security
PenFed knows defense. Our first duty always is to protect our members.
Save on School
With our education certificate, you’re less likely to dip into your savings prematurely and you get a higher yield.
Not Just for College
PenFed Coverdell Education Savings Certificates can be used for qualified elementary and secondary education.
Coverdell Education Savings Certificates
Education should never be unattainable. We want to ensure our members and their families can put as much money towards their futures as possible.
OUR GREAT RATES JUST GOT BETTER
Maximum yearly contribution is $2,000. Education Savings Share Account minimum opening deposit is $25. Education Savings Account Certificate minimum opening deposit is $500.
To our Puerto Rico Members:
Individual Retirement Products (IRAs) have different requirements, regulations and rules in Puerto Rico compared with the United States.
The above products and rates may not be available to residents of Puerto Rico. Please consult your tax advisor to learn the appropriate IRA solutions for you and your goals.
WHY COVERDELL EDUCATION SAVINGS CERTIFICATES?
Invest as little as $500
Tax-free earnings*
Tailored for education - elementary, secondary, and college expenses
Backed by NCUA insurance
QUESTIONS?
Give us a call or visit a branch today
CALL US: (800) 247-5626
Find a Branch
Disclosures
Coverdell Education Savings
APY (Annual Percentage Yield) is accurate as of![]( "MM Cert Effective Date")
and is subject to change at any time. Fees may reduce earnings.
We will establish your certificate on the day we receive your application and funding. Once purchased, the rate is locked in for the term of your certificate.
Certificate dividends are compounded daily and credited monthly.
For all certificates funded by ACH, funds cannot be withdrawn within the first 60 days of the account opening.
Early Redemption Penalties
Penalties are imposed for early withdrawal of Coverdell Education share certificates. You must provide your request in writing.
If the certificate is redeemed within the first year, all dividends will be forfeited.
If after the first year, but prior to the maturity date, the early withdrawal penalty will equal 30% of what would have been earned if the certificate had been held to maturity, not to exceed total dividends earned.
*Please consult your tax advisor
FEATURED BENEFITS
Earn Tax Free
It’s no secret that the cost of education is on the rise, so every dollar counts. You don’t have to lose valuable education funding to taxes. With the PenFed Coverdell Certificate, the earnings you see are the earnings you get— tax free!*
Backed by the NCUA
Savings are federally insured up to $250,000 and backed by the full faith and credit of the U.S. Government.
Wide Selection of Terms
PenFed has a plan to fit your life. Our Coverdell Savings Certificates range from one year to seven years. Find a plan that works for you.
Deposits as Low as $500
Your kids start small, and so can your savings. A deposit as low as $500 is a great seed for your children’s education. If you want to add more to gain more interest, you can! The maximum yearly contribution is $2,000.