Education Savings Accounts

An education savings account, or ESA, is established to save for education expenses. The contributions are not tax deductible. However, earnings are tax-deferred and the distributions are tax-free if used to pay for qualified education expenses.

Target Market: Individuals with children or grandchildren under age 18.

Fees:

$10 annual trustee fee (per ESA customer)
$25 closing fee (complete transfers or premature withdrawals)
$10 excess contribution fee (if First Federal must withdraw the excess)

Statement: None

Details: Minimum deposit of $100 to open. Must be used for qualified educational expenses. See account disclosure or ESA resource page for more information.

Features and Benefits:

  • Deposits and withdrawals can be made at any time (subject to ESA rules/guidelines)
  • Flexibility to use funds when needed for qualified education expenses
  • Annual contributions may be made until the child turns 18
  • Allows time to save for education expenses
  • Qualified education expenses include elementary, secondary and college expenses
  • Ability to use funds for all levels of education
  • Contributions may be made by any relative or non-relative
  • Any person can help a child with education costs (income limits may apply)

Complementary Products and Services

  • Personal Checking Account
  • Online Banking
  • Certificates of Deposit
  • Personal or Kids Savings
  • Mobile Banking with Free Mobile Deposit
  • IRA, HSA

Open an account in branch.

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