It’s never too early or too late to start saving for retirement — especially when you get tax benefits.*

Rates

Key Features

  • Tax Advantages*
  • Competitive Dividends
  • Save for retirement with tax advantages*
  • Earn competitive dividends higher than regular savings accounts
  • Pays monthly dividends
  • Traditional and Roth options available
  • Annual contribution limits apply (see current contribution limits; $6,000 as of 2021) 
  • Automatic transfers and/or payroll deposits available
  • $1,000 annual "catch up" contributions allowed for ages 50 and better
  • Funds can be used to purchase certificates within IRA
  • Federally insured
  • $50 minimum deposit to open

There are advantages to both traditional and Roth IRAs. One of the biggest differences is the time at which you see the most advantage. A traditional IRA provides potential tax relief today, while a Roth IRA has the potential for the most tax benefit at time of retirement.

Traditional IRA 

  • No income limits to open 
  • No minimum contribution requirement 
  • Contributions are tax deductible on state and federal income tax2 
  • Earnings are tax deferred until withdrawal (when usually in lower tax bracket) 
  • Withdrawals can begin at age 59½ 
  • Early withdrawals subject to penalty3 
  • Mandatory withdrawals at age 72   

Roth IRA 

  • Income limits to be eligible to open Roth IRA1 
  • Contributions are NOT tax deductible 
  • Earnings are 100% tax free at withdrawal2 
  • Principal contributions can be withdrawn without penalty2 
  • Withdrawals on interest can begin at age 59½ 
  • Early withdrawals on interest subject to penalty3 
  • No mandatory distribution age 
  • No age limit on making contributions (as long as you have earned income)

1Consult a tax advisor. 

2Subject to some minimal conditions. Consult a tax advisor. 

3Certain exceptions apply, such as healthcare, purchasing first home, etc. 

Create an easier transition into college for yourself and your student by setting up a savings account early. A Coverdell Education Savings Account (ESA) provides a tax-free safe place to grow competitive dividends and also financial confidence for a new stage in life. 

  • Set aside funds for your child's education 
  • No setup or annual fee 
  • Dividends grow tax-free 
  • Withdrawals are tax-free and penalty-free when used for qualified education expenses1 
  • Designated beneficiary must be under 18 when contributions are made 
  • To contribute to an ESA, certain income limits apply2 
  • Contributions are not tax deductible 
  • $2,000 maximum annual contribution per child 
  • The money must be withdrawn by the time he or she turns 303 
  • The ESA may be transferred without penalty to another member of the family 
  • No minimum deposit to open 

 

1Qualified expenses include tuition and fees, books, supplies, board, etc. 

2Consult your tax advisor to determine your contribution limit. 

3Those earnings are subject to income tax and a 10% penalty. 

*Consult a tax advisor.