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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.

Open a Certificate and set up your PenFed membership.

1. Discover how you’re eligible to become a PenFed member

2. Open a Savings Account and deposit at least $5


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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.



Give us a call or visit a branch today


CALL US: (800) 247-5626
Find a Branch


Coverdell Education Savings

APY (Annual Percentage Yield) is accurate as of 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For all certificates funded by ACH, funds cannot be withdrawn within the first 60 days of the account opening.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




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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!*

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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.

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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.

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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.




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.