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Student Banking

Saving for College

Plan for funding your child's education

Be sure your education funding matches your changing needs. Certificates of deposit (CDs) with Bank of America and investments with Merrill Edge® may help you stay ahead.

Certificates of deposit

With a Bank of America CD, you can choose the type of CD that works best for you: a fixed rate without a long-term commitment, penalty-free access to your money before your CD matures, a low minimum deposit and more.

Coverdell Education Savings Account

With a Coverdell Education Savings Account (ESA), any earnings and withdrawals are free from federal (and often state) income tax for any level of your child's education. Footnote1

Qualified higher education expenses include tuition, room and board, and books and supplies at accredited U.S. colleges or universities and some foreign schools. Qualified elementary and secondary education expenses include tutoring, uniforms, transportation and computer expenses.

A Coverdell ESA can provide you more favorable financial aid treatment than taxable accounts, such as a UGMA/UTMA account.Footnote2

529 college savings plans from Merrill Edge

These college savings plans were established by the federal government in Section 529 of the Internal Revenue Code to encourage families to save more for college. Earnings generated by 529 investments will be federal (and possibly state) income-tax-free as long as withdrawals are used for qualified higher education expenses.Footnote3 Certain states may offer tax or other benefits for investing in their Section 529 plans.Footnote4

Invest with Merrill Edge®

You can direct your own trading online through a Merrill Edge self-directed investing account, or through a Merrill Edge Advisory Center account you can get help from licensed Merrill Edge Financial Solutions Advisors™ who provide specific investment recommendations.

Estimate your financial aid need

  • Calculate your expected family contribution (EFC) and estimate your financial aid need with this easy-to-use form.
  • Calculate your EFC

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Information for Virginia

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