Vanguard Coverdell Education Savings Account

Introduction

Vanguard offers a low cost Coverdell Education Savings Account for indivduals wishing to save for educational expenses. Among the specific features of the Vanguard ESA are the following:

• The minimum investment for an ESA fund is $2000
• The mimimum amount for subsequent investments is $100
• Special Redemption Fee: $25 per fund per account when fund assets are fully redeemed within three years of the initial deposit
• Account Service Fee: $20 per year for each Vanguard fund in which you have a balance under $10,000 in an account. This Fee is waived for Flagshjp, Select Voyager, and Voyager investors, as well as for investors selecting e-service for the account.