Investments

Share Certificate

Share Certificate accounts typically provide a higher dividend/return on funds invested than those in share savings accounts.  A Share Certificate can also be used as investments for your Individual Retirement Accounts (IRA).

Account Features:

  • $1,000 minimum to open
  • $500 minimum to open – for Johnny Appleseed and Teen Advantage Share Certificate
  • Competitive dividend rates
  • Pays dividends for a fixed term
  • Various terms
  • Dividends compounded quarterly and credited quarterly
  • Automatic renewal with a 10-day grace period to make withdrawals, deposits, or changes without penalty*

*The early withdrawal penalty is one quarter’s dividends whether or not the dividends have been earned if the funds are withdrawn prior to the certificate maturity date.

IRA (Individual Retirement Account)

An Individual Retirement Account (IRA) allows you to save money for retirement with tax free growth or on a tax deferred basis.  We offer the following types of IRA’s:

  • Traditional
  • Roth
  • Coverdell Education Savings Accounts

Account Features:

  • $50 minimum to open
  • Earn dividends quarterly on average daily balance of $100 or more

*The Credit Union provides no legal advice to members, and provides the foregoing information from a reliable resource to give our members a basic understanding of these services. Consider consulting your tax adviser before making decisions regarding your IRA investment.

Traditional IRA

For a Traditional IRA, contributions are made with funds you may be able to deduct on your tax return and any earnings can potentially grow tax deferred until withdrawn in retirement. A Traditional IRA is a way to save for retirement that provides tax advantages.

A Traditional IRA can help you prepare for a number of purposes:

  • Pay for College
    Traditional IRA funds used to pay for qualified educational expenses can be withdrawn penalty free.  There is no dollar limit and funds can be used for tuition, fees, books, and supplies at a post-secondary institution.
  • Grow Your Nest Egg
    Earnings and deductible contributions in a traditional IRA grow tax-deferred until withdrawal, which can begin at 59½, but must begin at age 70½.
  • First Home Purchase
    You can withdraw up to $10,000 penalty-free towards the purchase of your first home.

Maximum contribution* – 2016: $5,500
$6,500 (for members age 50 and older)

*Ability to contribute to an IRA account should be determined by you and your tax advisor. A 10% early withdrawal penalty may apply for other withdrawals taken prior to age 59 ½, if no exceptions apply. Consult your tax advisor for application of tax laws to your personal situation. All contributions for the current tax year must be made before the tax filing deadline in the following year.

For information on opening an IRA account, please contact a Member Service Representative.
Click here to view our current deposit rates.

Roth IRA

With a Roth IRA, contributions are made with money on which you’ve already paid taxes. Your money can then potentially grow tax-free, with tax-free withdrawals in retirement, provided that certain conditions are met.

A Roth IRA can help you prepare for a number of purposes:

  • Preparing for Retirement
    Roth IRAs serve as a great retirement tool because qualified withdrawals, including earnings, are tax-free. Contributions are not tax deductible.
  • Pay for College
    Qualified educational expenses are penalty free.  There is no dollar limit and funds can be used for tuition, fees, books, and supplies at a post-secondary institution.
  • Rainy Day Fund
    You have access to your regular contributions tax- and penalty-free at any time, for any reason. There is no age limit required to make withdrawals.
  • First Home Purchase
    If you’ve had your Roth IRA for at least five years, you can use $10,000 towards the purchase of your first home tax- and penalty-free.

Maximum contribution*(2016): $5,500
$6,500 (for members age 50 and older)

*Ability to contribute to an IRA account should be determined by you and your tax advisor. A 10% early withdrawal penalty may apply for other withdrawals taken prior to age 59 ½, if no exceptions apply. Consult your tax advisor for application of tax laws to your personal situation. All contributions for the current tax year must be made before the tax filing deadline in the following year.

For information on opening an IRA account, please contact a Member Service Representative.
Click here to view our current deposit rates.

Coverdell ESA

A Coverdell ESA is a trust or custodial account created for the purpose of paying the qualified education expenses of the designated beneficiary of the account. The designated beneficiary is the individual who will receive the benefit of the funds in the account. When the account is established, the designated beneficiary must be under age 18, or a special needs beneficiary.

A Coverdell Education Savings Account can help you prepare for your child’s education expenses:

  • Beneficial and flexible
    Withdrawals are tax-free as long as they are used for qualified education expenses. Funds can be moved from one child’s account into another eligible family member’s account.
  • Maximum age limit
    Contributions can be made until the recipient reaches age 18. By age 30, any balance must be distributed or rolled over.
  • Educational expenses
    Qualified expenses include tuition, fees, books, supplies, equipment, and in some cases, room and board.

Maximum contribution: $2,000 per calendar year

*Ability to contribute to an IRA account should be determined by you and your tax advisor. Consult your tax advisor for application of tax laws to your personal situation. All contributions for the current tax year must be made before the tax filing deadline in the following year.

For information on opening an IRA account, please contact a Member Service Representative.
Click here to view our current deposit rates.

Investment Rates

IRA Savings

Annual Percentage Yield is accurate as of August 1, 2016. Rates and other terms may change at any time without prior notice. Fees could reduce earnings on the account.

Share & IRA Certificate

Annual Percentage Yield is accurate as of August 1, 2016. Rates and other terms may change at any time without prior notice. After your certificate is opened, the dividend rate is fixed for the term. A penalty is imposed for early withdrawal. Fees could reduce earnings on the account. Dividends will be compounded quarterly and will be credited quarterly. If you close your share account before dividends are paid, you will not receive the accrued dividends.