Education Savings Accounts (Coverdell ESA)
Start saving for a child’s future by investing on their behalf—and at a great rate!
A Coverdell Education Savings Account (ESA) provides a tax-advantaged way to save for a child’s education (income limits apply).
Tax-deferred growth. Interest earned is tax-deferred, so your compounding interest goes that much farther.
Tax-free distributions. Distributions are tax-free and used for qualified educational or special needs expenses from K-12 and higher education (tuition, room and board, equipment, supplies, etc.).
Great rates, locked in. Once you invest in a fixed-rate investment note, your rate is set for the term you selected. Any money you add will earn at that same fixed rate.
Personal customer service. You can expect personal attention from our skilled and dedicated investment specialists, whether you call our office or make an appointment to stop by!
You can easily manage your fixed-rate investment on our secure customer portal.
Invest in Your Child While Supporting Ministry
Contributions to your Coverdell ESA are limited to $2,000 per child per year. However, you may spread those contributions across multiple notes earning different rates to make the most of your invested funds.
Earn up to
0
% APY*
on a six-month term.
*APY = Annual Percentage Yield assumes all interest is left in the investment and compounded.
Current Rates
|
APY*
|
APR*
|
Term
|
|---|---|---|
|
5.12%
|
5.00%
|
6 Month
|
|
4.59%
|
4.50%
|
12 Month
|
|
4.33%
|
4.25%
|
18 Month
|
|
3.82%
|
3.75%
|
2 Year
|
|
3.56%
|
3.50%
|
3 Year
|
|
3.04%
|
3.00%
|
5 Year
|
Opening a Coverdell ESA is easy to do.
To get started, fill out a brief form so we can recommend the best options for your situation. Then, choose a term that fits your savings goals—or diversify your investment across multiple rates and terms. Once you’ve reviewed our Offering Circular, simply complete a short application to open your investment.
Frequently Asked Questions
Contribution limits are up to $2,000 per year, per child.
Contributions can be made until the child reaches 18, and must be distributed by the time the child reaches age 30.
Anyone can contribute to an ESA, including individuals, organizations, and trusts, as long as their income is within the specified limits.
If funds in a Coverdell ESA are not used for qualified education expenses and distributed by age 30, the remaining balance is taxed as ordinary income to the child.
Yes, the beneficiary can be changed to another member of the beneficiary’s family, as long as the new beneficiary is below age 30. The IRS classifies the following as family: original beneficiaries spouse, children, grandchildren, siblings, parents, nieces, nephews, and in-laws, as well as the spouse of any of these individuals.
Redemptions can be made at any time. If there is an unused balance once the beneficiary reaches age 30, the balance must be redeemed or transferred to a qualifying family member.
Redemptions should generally be used for qualified education expenses, such as tuition, fees, books, supplies, and equipment for elementary school, secondary school, or post-secondary school. Redemptions for non-qualified expenses are taxable and subject to a 10% tax penalty.
Your investments are not “secured.” Investments with GenFi Ministries cannot be covered under the FDIC insurance program, because GenFi Ministries is a ministry, not a bank.
GenFi Ministries’ total net assets exceeded $15 million as of December 31, 2024. See our Offering Circular for more information.
Your investment supports the expansion of Assemblies of God churches and ministries through our loan program. See our Offering Circular for more information regarding our activities and the use of proceeds when you invest with us. See the impact investments with GenFi Ministries have for ministries nationwide.
Investing with Purpose
Investments with GenFi Ministries support churches and ministries.
When you invest with GenFi Ministries, you help build up Assemblies of God churches all over the United States. Thanks to the investments of thousands of individuals and families, we can support the health, vitality, and continued success of hundreds of ministries. Your investment is not just earning a return for you… it’s earning a return for the Kingdom and creating a generational impact.