Coverdell Education Savings Account (CESA) 

The CESA is a useful vehicle for saving for "qualified education" expenses.  CESAs are designed to encourage early and consistent savings by offering a convenient way for families to save for college.  Merchants State Bank offers a no-fee CESA. 

Benefits of the CESA include:

• All money grows federal and state income-tax free.
• All withdrawals for qualified higher education expenses are exempt from federal income tax.
• The beneficiary can be changed at any time to another member of the beneficiary's family.
• Make regular contributions through automatic transfers from any Merchants State Bank Checking or Savings account.
• $2,000 maximum contribution limit.

Merchants State Bank would like to help you plan for college.  See our rates page for current rate.