Education Savings Account: Charles Schwab: Investing for College

Open an account with $1,000, or $0 if you set up automatic monthly transfers.
Account maintenance fees: None.
Contribution limit: $2,000 annually until the beneficiary turns 18 (subject to limits).
Who's it for? U.S. residents.

Open the account that lets you:

Enjoy tax-deferred earnings.
Make tax-free withdrawals¹ for qualified expenses like tuition, fees, books, and room and board.
Preserve potential financial aid benefits.
Use funds for K-12 expenses without penalty through 2010.

Because it's a Schwab account, you can:

Decide how your contributions are invested— use our industry-recognized research to choose stocks; bonds; CDs; no-load, no-transaction-fee mutual funds and more; or select a single portfolio solution.

1. All non-qualified withdrawals are subject to federal and state income tax and a 10% penalty. State tax treatment of earnings may vary.

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