Educational Contribution Account (ECA)

• The principal and interests are insured by the FDIC.
• Minimum initial deposit: $500 that may be deducted from the income tax return
• Available term: 3 years.
• The father, mother or guardian of the beneficiary may open the account.
• Serves as an additional contribution to an IRA account.

Disclosures:

• The interests are computed daily on the daily balance and they are accredited monthly.
• Once the instrument is opened, no additional deposits or withdrawals are allowed prior to the maturity date. Withdrawals are only allowed for the beneficiary’s post-secondary school education, according to the restrictions imposed by the Treasury Department.
• Penalties for withdrawals or cancellations before maturity: 180 days interest or the total interest earned, including those paid, whichever is less.
• Penalty for withdrawals or cancellations prior to the maturity date does not apply if the purpose of withdrawal is for the beneficiary’s college education.
• Processing fee: $5 per instrument regarding withdrawals and returns in excess of contributions; $25 per instrument for rollovers to an eligible institution.

ECA accounts are only available for current residents of the Commonwealth of Puerto Rico.  ECA accounts requested through Internet Banking must be paid through an electronic debit. Payments in cash, check or money order will only be accepted at Banco Popular branches.

† Banco Popular offers diverse investment alternatives. Please obtain additional information to determine the alternative that best suits your needs.