In the IRS rules governing Coverdell Education Savings Accounts (ESAs), we did not find any restrictions on charging fees on that type of account. For more background on the rules that apply to these accounts, we recommend reviewing pages 45–54 of IRS Publication 970 (2011), which are attached. In that publication, the IRS provides a concise overview of the requirements that apply to these accounts (none of which involve any restrictions on fees charged by a bank):

When the account is established, the designated beneficiary must be under age 18 or a special needs beneficiary.

To be treated as a Coverdell ESA, the account must be designated as a Coverdell ESA when it is created.

The document creating and governing the account must be in writing and must satisfy the following requirements.

1. The trustee or custodian must be a bank or an entity approved by the IRS.

2. The document must provide that the trustee or custodian can only accept a contribution that meets all of the following conditions.

a. The contribution is in cash.

b. The contribution is made before the beneficiary reaches age 18, unless the beneficiary is a special needs beneficiary.

c. The contribution would not result in total contributions for the year (not including rollover contributions) being more than $2,000.

3. Money in the account cannot be invested in life insurance contracts.

4. Money in the account cannot be combined with other property except in a common trust fund or common investment fund.

5. The balance in the account generally must be distributed within 30 days after the earlier of the following events.

a. The beneficiary reaches age 30, unless the beneficiary is a special needs beneficiary.

b. The beneficiary’s death.

Also, please note that the rules applying to IRAs do not always apply equally to Coverdell ESAs—as stated by the FDIC (in its Your Insured Deposits brochure), while Coverdell accounts are often referred to as “IRAs,” they are not retirement accounts. Instead, as you pointed out, they are trust or custodial accounts set up for educational savings.