A Coverdell Education Savings Account (CESA) provides tax-free earnings when the funds are used for your child's qualified education expenses.
There are no age or compensation requirements to open and contribute to a CESA; you do not even need to be related to the child you are contributing for. The interest is 100% tax free and withdrawals can be made at any time when used for qualified education expenses.*
*Includes tuition and fees, books, supplies, board, etc.