Education Savings Account (ESA) CD:
Start saving now for educational expenses with an Education Savings Account (ESA) CD.
It has a low opening balance requirement and deposits can be made into the account up to the $2,000 annual limit.
Contributions to ESA CDs are not tax-deductible, but dividends grow on a tax-deferred basis and withdrawals for qualified education expenses are tax-free.
ESA CDs can be established for a child by anyone, and contributions to the account can also be made by anyone.