EARN INTEREST ON YOUR MONEY
Federal Reserve Bank offers a variety of CDs and IRAs to match your needs.
CDs & IRAs
Certificates of Deposit (CDs)
With a CD, your savings are invested at a set rate for a specified period of time. You'll typically receive a higher interest rate on CDs with longer terms. Early withdrawal penalties may apply.
| Account | Minimum Opening Deposit | Interest Rate | Annual Percentage Yield |
|---|---|---|---|
| 3 Month | $500 | 0.10% | 0.10% |
| 6 Month | $500 | 0.15% | 0.15% |
| 9 Month | $500 | 0.20% | 0.20% |
| 12 Month | $500 | 0.20% | 0.20% |
IRAs
Plan For Your Future
Individual Retirement Accounts (IRAs) are excellent for preparing for retirement. Federal Reserve Bank offers both Traditional and Roth IRAs, which can provide either tax-deferred earnings or tax free earnings, allowing your retirement savings to grow. We also offer tax-deferred Educational IRAs for your future education needs.
With FDIC insurance up to $250,000 with free and flexible distribution options, IRAs are a great way to fund your retirement savings plan. Whether you decide on a Traditional, Roth, or Educational IRA, Federal Reserve Bank will help you plan successfully while maximizing your savings.
Traditional IRA
- Contributions are tax-deferred until withdrawal
- May be eligible to deduct contributions on current tax returns
- Penalty-free early withdrawal for certain expenses
Roth IRA
- Qualified distributions will be tax free and penalty free as long as certain conditions are met
- Penalty-free early withdrawal for certain expenses
Education Savings Account (ESA)
- Maximum annual contribution of $2,000 per child
- Individuals and non-individuals may contribute, including relatives, friends, corporations, and tax-exempt organizations (must be age 18 or older to contribute)
- Distributions are tax-free provided they do not exceed qualified education expenses incurred at an eligible education institution such as elementary, secondary, and higher education
- Funds can be transferred to another ESA for a member of the same family, provided the new beneficiary is younger than age 30 (with the exception of a special needs individual)
| Tax-Deferred IRAs Details | |
|---|---|
| Terms Available | 6 Months, 9 Months, & 12 Month |
| Minimum Deposit Required to Open An Account | $500.00 |
| Minimum balance to obtain Annual Percentage Yield |
$500.00 |
| Early Withdrawal | IRS may impose additional penalties for early withdrawals |
| Contribution Limits as of Current Tax Year | $6,000 for under 50 years old, $7,000 for 50 years old and older |
Additional Important Details
Annual percentage yield assumes interest remains on deposit, withdrawals of interest will reduce earnings.
Annual percentage yield is accurate as of 2/05/2020.
The interest for your account will be paid at maturity, automatically renewing at its maturity date.
You will have seven calendar days from maturity date to withdraw your funds or your certificate will automatically rollover.
If any deposit is withdrawn before the maturity date, a penalty may be applied.
Increments of $100 or greater are allowed on any IRA term as long as the account doesn't exceed yearly contribution limit.
Fees could reduce earnings on the account.
