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Our Midwood branch located at 1560 Flatbush Avenue in Brooklyn will reopen this Friday, May 31st!

In the meantime, you can securely access your accounts by logging into Digital Banking or visiting any of our other local branches.


Save Up to $2,000 Per Child, Per Year

Enjoy tax-free savings with a Coverdell Education Savings Account.


Prepare for Your Child’s Education Needs with a Coverdell ESA.

A Coverdell education savings account (ESA) is a trust or custodial account set up solely for the purpose of paying qualified education expenses for the designated beneficiary of the account (usually your child). With a contribution maximum of $2,000 per year and flexible terms, a Coverdell ESA offers options and security when it comes to paying for education.

Features & Benefits

  • Tax-free earnings for Higher education before 30
  • No Service Fee
  • Fixed or Variable term options ranging from 6-24 months
  • Invest up to $2,000 per year


Choose Between Fixed or Variable Options.

Open with a minimum deposit of $500 at a fixed rate APY* for terms of 6, 12, 24, and 36 months. Or, open with $100 minimum for an 18-month variable account term.

MCU2 Student Banking

Withdraw Tax-Free for Higher Education Expenses.

Plan ahead with a Coverdell ESA. Contributions are non-deductible, but may be withdrawn tax-free when used for qualified education purposes at any time before the beneficiary reaches age 30.

It’s Never Too Early to Start Saving.

With no minimum age, Smart Apple Savers is available to children ages 0-21, and Future Investors is available to ages 13-21. Your children will learn the value of savings while also accruing interest and receiving quarterly statements to watch their accounts grow.

Open a Youth Account for your child today, starting with just a $0.01 minimum deposit—visit your local branch to get started.


Get Answers to Our Most Frequently Asked Questions.

How do I apply to open a Coverdell ESA for my child?

There are currently two ways to open a Coverdell ESA. You can either call MCU at 1-844-MCU-NYNY (1-844-628-6969) to open an account, or visit your local branch. Coverdell ESAs are not available to open through NYMCU Digital Banking at this time.

Who else can contribute money to my child’s Coverdell ESA?

Any individual whose modified adjusted gross income is under the limit set for a given tax year can make contributions. Organizations, such as corporations and trusts can also contribute regardless of their adjusted gross income. Contributors must contribute by the due date of their tax return (not including extensions).

What are the IRS requirements?

General terms for any Coverdell ESA account are outlined by the IRS. Here are the main requirements to consider:

When the account is established, the designated beneficiary must be under the age of 18 or be a special needs beneficiary.

The account must be designated as a Coverdell ESA when it is created.

The document creating and governing the account must be in writing, and it must meet certain requirements.

There are other rules too, which you can find more on the IRS website.

Can I make multiple accounts?

Yes, there's no limit to the number of accounts that can be established for a particular beneficiary. However, the total contribution to all accounts on behalf of a beneficiary in any year can't exceed $2,000.

If you’re interested in saving beyond that limit, look into Savings account options MCU offers for short-term or long-term goals.

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