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The Traditional IRA is an interest-bearing account that can be opened with just $100. It is a secure, FDIC-insured vehicle for customers with earned income looking for a way to save for their future(s). And depending upon adjusted gross income, customers may qualify for tax return deductions. IRAs can be set up as statement savings accounts or CDs (check your bank's product offering).
Like the Traditional IRA, the Roth IRA is earns interest and can be opened with just $100. This IRA offers the ability to invest after-tax dollars today, and withdraw principal and earnings tax-free after five years.
| Minimum to Open: |
$100 |
Interest Rate:
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Variable for Savings Accounts. Fixed for CDs. Check your bank's daily rate report. |
Compounding:
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Varies bank to bank - check at your location |
| Service Charges: |
* $35 closing fee applies if funds are transferred out of the bank.
* $12 annual fee
* There are tax penalties for early withdrawals. Customers should consult with their tax accountant.
CD only: Early withdrawal penalties range from four to seven months of interest depending upon the term selected. |
| Statements: |
Notices are mailed prior to maturity of the IRA |
| Restrictions: |
* Must keep a balance of at least $.01 to maintain the account
* Check with your tax preparer to see how much you may contribute this year. |
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