Investing Basics
Saving for Education

Next to retirement, saving for college is the most popular savings goal. Homestead Funds has two types of education savings accounts that offer tax benefits:

1.Education Savings Account (ESA)—Also called a “Coverdell” account

2. UGMA/UTMA account— named for the Uniform Gifts/Transfers to Minors Act

The choice of which type of account is best for you may depend in part on how much you plan to invest and how you’ll be making contributions: all at once or over time. You will also want to consider how much control you want over how the account is used.

For more comprehensive information, read the Helpful Tips guide, Saving for Education.