The Education Contribution Account (CAE, for its Spanish acronym), allows you to save money for the college education of your children. The contribution can be deducted from your Income Tax Return in addition to other IRA accounts.

Education Contribution AccountTerms (years)DeductibleFixed interestTax- Exempt InterestMinimum ContributionPrincipal guaranteed by FDIC
CAE Account
Save for the postsecundary education of your children. 		1 and 3 yearsYesGuaranteed interest rate for the term you chooseNo$500Yes
Stock Market CAE
Growth opportunity based on the S&P 500 index. 		5 añosYesCalculated based on the performance of the Standard & Poor’s 500 Index over the term of the deposit.No$500Yes

More information about Educational Contribution Account (ECA)

  • It can be opened by the person who has parental authority and custody of the beneficiary.
  • Relatives can deposit up to the third degree of consanguinity (parents, grandparents, great-grandparents) or second degree of affinity (step-parents, grandparents-in-law).
  • The principal and interests are insured by the FDIC.
  • Available terms: 1 and 3 years.
More information
image- Educational Contribution Account (ECA)

More information about Educational Stock Market

  • The interest earned is based on the Standard and Poor's 500 Index (S&P 500.)
  • The principal is insured by the FDIC.
  • Minimum initial deposit $500.
More information
image - Educational Stock Market

Member FDIC. Penalty for withdrawal or cancellation prior to maturity: 90 days of interest for ECA-12 Months and 180 days of interest for ECA-36 Months. Processing fees for excess withdrawals and returns on excess contributions: $5 per instrument. Processing fees for rollovers to other eligible institutions: $20 per instrument. Certain restrictions apply. Banco Popular offers various investment alternatives. Obtain more information to determine which one is best for you. Staock Market ECA: Penalties for withdrawals or cancellations before maturity during the first year equivalent to 30% of the principal; 25% of the principal during the second year; 20% of the principal during the third year; 15% of the principal during the fourth year; and, 10% of the principal during the fifth year. Principal insured by the FDIC up to the maximum allowed by law.

CAE Regular: Principal and interest are insured by the FDIC up to the maximum amount permitted by law. Once the instrument is opened, no additional deposits or withdrawals are allowed until the maturity date. Interest is calculated daily on the daily balance and credited monthly. The method used to calculate interest is the daily balance method. This method applies the daily periodic rate to the account’s principal each day. When the opening or deposit is made by means of items (e.g., checks), interest begins to accrue on the business day the transaction is made. Renewal is automatic at maturity for periods of equal duration and applies the rate in effect at the time of renewal. There are no grace periods for CAE renewals. Penalty for withdrawals or cancellations before maturity: 90 days of interest for 1‑year CAEs and 180 days of interest for 3‑year CAEs.

Stock Market CAE: The principal is insured by the FDIC up to the maximum amount permitted by law. After opening the Stock Market CAE, no additional deposits may be made at any time. Partial withdrawals are not allowed before the maturity date. The interest to be paid at the maturity of the Stock Market CAE account will follow the formula disclosed in the Annex to the Educational Savings Account (CAE) Agreement at the time of the deposit. For details, you may also consult the Stock Market Products Disclosure document. At maturity, the account does not automatically renew into another Stock Market CAE product, and the total balance is invested in a 3‑year CAE. Penalties for withdrawals or cancellations before maturity are as follows: 30% of principal during the first year; 25% of principal during the second year; 20% of principal during the third year; 15% of principal during the fourth year; and 10% of principal during the fifth year.