There are many factors to consider when choosing an educational account for your child. Our Financial Advisors at Peoples Bank understand the differences between each program offered and can guide you to the program that is appropriate to help meet your families educational needs.
529 College Savings Account
A 529 account is a college savings account that allows you to save and invest on a tax-advantaged basis. Funds from a 529 account can be used to cover college and graduate school expenses for your child or other beneficiary.
A custodial account is owned by the child and is managed by an adult until the minor reaches the age of 18 or 21 (depending on the state). The funds in the custodial account may only be used for the child's benefit, but are not limited to education expenses.