Ways to Save
Saving money is important, but how and where you save it is also a critical decision. There are savings vehicles designed to meet various savings needs and goals. Perhaps you are saving for college expenses or you want to be able to save some money that can be used at some point in the future. The following information provides details on how to save for your goals.
Coverdell Education Savings Account
State Employees’ Credit Union offers the Coverdell Education Savings Account (CESA), which is a tax-advantaged deposit designed to help save for future educational expenses.
- Must be established in the name of a designated beneficiary who is an SECU member under the age of 18 or with special needs
- Can be established by parents, grandparents, or other interested adults
- Parent or legal guardian must be named as responsible individual
- Contributions, up to $2,000 per year, are made with after-tax dollars
- Earnings grow tax-deferred
- Tax-free withdrawals to pay for qualified elementary, secondary and higher education expenses
- $25 minimum opening deposit
- For rates, visit SECU’s Deposit Rates page
- For More information, visit https://www.irs.gov/taxtopics/tc310
North Carolina 529 Plan
A North Carolina 529 Plan (NC 529 Plan) is a tax-advantaged education savings plan operated by the College Foundation of North Carolina and is designed to help families set aside funds for future college costs.
The minimum initial contribution as well as any subsequent contribution is just $25. The current maximum balance allowable is $450,000 for all NC 529 Accounts with the same Beneficiary.
Save on Taxes While Saving for College
If you are a North Carolina resident, you should consider the North Carolina 529 Plan. Earnings in the NC 529 Plan grow free from federal and NC income tax, and are not taxed by the state of North Carolina or the federal government upon withdrawal, as long as the money is used to pay for your Beneficiary's qualified higher education expenses.
The NC 529 Plan offers 14 investment options for you to choose from, including an option made available by SECU; the Federally-Insured Deposit Account. The Federally-Insured Deposit Account option offers income along with protection of principal and earnings and is insured by the National Credit Union Administration (NCUA).
Open a 529 Account
The NC 529 account is NOT an SECU deposit account, but is available and maintained by the College Foundation of North Carolina.
You can open a NC 529 Account online at www.CFNC.org/NC529 or visit your local branch and a Financial Services Officer will be happy to help you open one.
Each Account has one Participant (account owner) and one Beneficiary (the person for whom you are saving). The Participant is in control of the NC 529 Account. The Beneficiary has no access to the Account or control of the funds.
When you visit the branch, please bring demographic information (name, address, social security number, date of birth) for both the Participant and Beneficiary. Before you enroll, please review a complete Program Description at www.CFNC.org/NC529 or request one by calling the savings program toll-free at (800) 600-3453.
United States Savings Bonds may be redeemed at any of our SECU branch locations and/or may be purchased directly from the US Treasury at Treasury Direct.
If you are ready to buy savings bonds, you can follow this guided tour for assistance.
Below are two savings bond tools offered by Treasury Direct that you may find helpful: