An IRA Certificate is a high-yield account with terms from one to five years. You must open an appropriate IRA first before establishing a certificate. Any qualified Roth or Traditional IRA funds are eligible for an IRA certificate.
Earn interest at a higher fixed rate with terms from one to five years. Taxes on earnings may be deferred until withdrawn or tax free for qualified Roth IRA withdrawals. Early withdrawals may be penalized. Interest rates vary according to the length of the term. Beginning in 2015, you can make only one rollover from an IRA to another (or the same) IRA in any 12-month period, regardless of the number of IRAs you own. The limit will apply by aggregating all of an individual’s IRAs, including SEP and SIMPLE IRAs as well as traditional and Roth IRAs, effectively treating them as one IRA for purposes of the limit.
|Must open appropriate IRA share first before establishing a certificate||Convenient|
|Members can put any type of qualified IRA funds (Traditional, Roth, Coverdell Education Savings) into an IRA Certificate||Convenient|
|All IRS rules and regulations apply to IRA Certificates||Savings incentive|
|Minimum balance requirements: CESA – $100 Traditional, Roth, and Sep – $500||Flexible|
|No required annual contributions||Flexible|
|Dividends are calculated using the average daily balance method and compounded monthly||Earns dividends|
|Taxes on earnings are deferred until withdrawn or tax free for qualified Roth IRA withdrawals||Savings|
|Early withdrawal penalty equal to 90 days dividends on one (1) year term and penalty equal to 180 days dividends on two (2), three (3), four (4) and five (5) year terms unless used for required minimum distribution (RMD)||Peace of mind in case of an emergency|
|Rate is fixed for term of certificate||Peace of mind|
|One (1) , two (2), three (3), four (4) and five (5) year terms||Flexible|
|You may access your account in person, by phone, Online Banking and through mail||Convenient|
|You will receive notice 30 days in advance of maturity; certificate automatically renews at prevailing board rates; ten (10) day grace period for any change requests.||Convenient|