Certificates & IRAs
Certificates
- Competitive dividend rates make Credit Union Certificates a good, solid, long-term investment. These certificates earn dividends at a higher rate than that paid on share savings accounts.
Earn dividends at a higher rate than share savings accounts with flexible terms from 2 months up to 60 months. Certificates are compounded monthly and require a $500 minimum deposit.
Share Certificates Benefits:
- Terms of 3 to 60 months
- Withdrawal dividends at any time without penalty
- $500 minimum balance requirement
- Certificates can be used as collateral for loans
The minimum to open a Certificate is $500. Dividends are compounded and credited monthly. There is a penalty for early withdrawal of principal before the maturity date. The penalty amount is based on the term of your account: terms of 7-31 days – the greater of the dividends earned on the amount withdrawn or all of the dividends that could have been earned on the amount withdrawn during a period equal to one-half the maturity period; terms of 32 days – 1 year – an amount equal to 60 days’ dividends, whether earned or not; terms of more than one year – an amount equal to 120 days’ dividends, whether earned or not. Certain exceptions apply.
TRADITIONAL IRA
The Traditional IRA allows you to contribute up to $7,000 a year. Contributions cannot exceed annual compensation. Owners aged 50 or older, are allowed a “catch up” contribution up to $8,000.
TRADITIONAL IRA BENEFITS:
- Offers tax-deferred earning
- Possibility for tax-deductible contributions
- All earnings are tax free until they are withdrawn
- Begin receiving your disbursements as early as age 59 1⁄2 or delay them until 73.
ROTH IRA
The Roth IRA allows you to contribute up to $7,000 a year while earning generous dividends while you build your balance and invest in your future. Owners aged 50 or older, are allowed a “catch up” contribution up to $8,000.
ROTH IRA BENEFITS:
- Contributions are not tax deductible
- Contributions can be withdrawn at any time, tax & penalty free
- Withdrawal of earnings will be a qualified distribution, not subject to taxation, if:
- 5 Year test has been met
- Other qualified reason
- Age 59 1/2
- Death
- Disability
- 1st time home purchase ($10,000 max)
- Never required to withdrawal