Save for a Child’s Education

We can help you develop a savings strategy for your child's college education.

Higher education is expensive, and costs continue to climb at rates that far outpace inflation. The sooner you start saving for college— whether for a child, a grandchild or yourself— the more time you’ll have for your money to potentially grow. U.S. Bank and U.S. Bancorp Investments can provide products and services to help.

  • A number of variables affect how much you should expect to save, including:

    • Your time horizon and college tuition inflation rates
    • Whether you're planning on a public or a private school education
    • The potential to take advantage of financial aid and scholarships
    • Expenses such as food, room and board, cell phones and transportation costs
  • Use our calculators to help give you an idea of how much you may want to save.

    Education Calculators

  • Perhaps the best way to make a college education realistic in the future is to start planning and saving now. There are a number of investment accounts you can use to help save for a child's education, each with distinct features and potential benefits.

    The following are three types of accounts that many families consider:

    • 529 College Savings Plans are tax-advantaged Plans designed to pay for qualified higher education expenses. Qualified distributions are federal income tax-free but non-qualified distributions are subject to all applicable federal and state income taxes, and may be subject to a 10% federal penalty. Before investing in a 529 College Savings Plan, consider your state of residence, which may offer a 529 College Savings Plan with state tax or other benefits available only to residents of the state.
    • Coverdell Education Savings Accounts, formerly known as the Education IRA, provide a potentially tax-efficient way to contribute up to $2,000 per year per beneficiary for elementary, high school and college expenses. Non-qualified withdrawals are subject to all applicable federal and state income taxes, and may be subject to a 10% federal penalty.
    • Custodial Savings Accounts (UGMA/UTMA) let you set money aside for a child’s education and other expenses in the child’s name. You control the investments, but the child owns the assets and ultimately controls the account after reaching the age of majority. A portion of the withdrawals are taxed at the child’s rate.

    For all of the plans above, please consult your tax advisor or legal counsel for advice and information concerning your particular situation.

  • Eligibility for federal student aid is based on financial need and other factors. The financial aid administrator at the college(s) you want to attend can help determine your eligibility. It still may be a good idea to complete the FAFSA (Free Application for Federal Student Aid) because your student may be eligible for non-federal aid from states and private institutions.

  • Borrowing from your home equity or retirement account — or reducing your retirement savings contributions to help pay for college — is an option. However, doing so may impact your retirement savings goals.

  • Education Funding

    Saving for education starts with becoming better informed. Compare 529 Plans, Coverdell Accounts and Custodial Accounts.

    Learn More

    Use Our Calculators

    Our financial calculators can help you customize scenarios for:

    • Retirement
    • Education
    • 401(k)
    • Insurance

    Financial Planning

    We’ll work with you to develop a plan that reflects your goals and dreams, and help you make informed choices about your future.

    Learn More

“Call to Invest” and “Invest on Your Own” are services offered through U.S. Bancorp Investments.

Investment products and financial services are provided through U.S. Bank and/or its affiliate, U.S. Bancorp Investments.

Investment products and services are:

Not a DepositNot FDIC InsuredMay Lose ValueNot Bank GuaranteedNot Insured by any Federal Government Agency

This information represents the opinion of U.S. Bank and/or U.S. Bancorp Investments and is not intended to be a forecast of future events or a guarantee of future results. This information is designed to be educational and informative. It is not intended to provide recommendations, to provide specific advice concerning retirement accounts and investment planning, or to meet the needs of any particular investor. Investors should consult with their investment professionals for advice concerning their particular situations.

U.S. Bank, U.S. Bancorp Investments and their representatives do not provide tax or legal advice. Each individual's tax and financial situation is unique. Clients should consult their tax and/or legal advisor for advice and information concerning their particular situation.

The factual information provided has been obtained from sources believed to be reliable, but is not guaranteed as to accuracy or completeness.

For U.S. Bank:

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U.S. Bank is not responsible for and does not guarantee the products, services, or performance of U.S. Bancorp Investments.

For U.S. Bancorp Investments:

Investment products and services are available through U.S. Bancorp Investments, the marketing name for U.S. Bancorp Investments, Inc., member FINRA and SIPC, an investment adviser and a brokerage subsidiary of U.S. Bancorp and affiliate of U.S. Bank.

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