Education Savings

Whether it's time to pick a preschool or scan college catalogues, funding your child's education is a big responsibility. Turn to your RBC banking representative for knowledge and expertise that will help you find the best education savings plan for your situation. In the meantime, relax and read your child a book or help him or her study. It's never too early to start investing in your child's future.

529 Plans

529 College Savings Plans are excellent investments for parents, friends and relatives regardless of income level or amount of savings. Visit your banking center to learn how these state-sponsored savings plans can help pay educational expenses for a child or even yourself. While you plan for the future, you can enjoy tax breaks today. All 529 Plans grow tax deferred, and when you withdraw funds to pay education expenses, you still don't pay federal taxes. Consult your RBC banking representative about state-specific tax benefits as well.

Roth IRAs

While traditionally used for retirement savings, a Roth IRA includes specific provisions for education spending. And, because withdrawals are made tax-free, a Roth IRA may make a good plan for your education financing.

Savings Bonds

Invest in America and the future with U.S. Savings Bonds. These easy-to-buy investments start as low as $25, making them great gifts for birthdays or holidays. And, in some cases, interest on bonds may be tax free when used for educational purposes. Visit your banking representative for details about the types of bonds available, or make your purchase at any of our banking centers.

Coverdell Education Savings Account (ESA)

Coverdell Education Savings Accounts, formerly Education IRAs, offer parents, grandparents and almost anyone else the opportunity to deposit after tax funds into an account for current or future education expenses. Contributions are not tax deductible, but interest earnings are tax-deferred until withdrawal, and even then, withdrawals are tax-free if used for qualified education expenses. Contact your RBC banking representative about additional details and qualifications.