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IRA Certificates of Deposit
We offer:
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Traditional
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Roth
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Education IRA's
Even if your retirement is a long way off, plan for your
future now with an IRA Certificate of Deposit.
IRA STATEMENT SAVINGS
Not sure where to park your IRA funds? Why not
deposit your IRA to our IRA Savings Account which allows the flexibility of
deposits and distributions when you want to make them.
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Minimum opening deposit -
$10.00
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Minimum daily balance of $10.00
in the account each day to earn and obtain the annual percentage
yield.
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Your interest rate and annual
percentage yield may change. At our discretion, we may change
the interest rate for your account at any time.
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We use the daily balance method to calculate the interest on your account. This
method applies a daily periodic rate to the collected principal in the account each day.
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Interest for your account will
be compounded daily and distributed quarterly.
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Additions and distributions are
permitted at any time.
3 Month - 60 Month Fixed Rate IRA Certificate
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Minimum opening balance - $250.00
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We use the daily balance method to calculate the interest on your account. This
method applies a daily periodic rate to the principal in the account each day.
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Interest for your account will be compounded depending on which product type you
choose.
The compounding frequencies are as follows:
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Daily compounding - this method adds interest earned to the principal in the
account each day in order to calculate the next day's interest earned.
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Monthly compounding - this method adds interest earned to the
principal in the
account each month in order to calculate the next month's interest.
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Quarterly compounding - this method adds interest earned to
the principal in the account each quarter in order to calculate the next
quarter's interest.
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True simple - this method calculates interest on the
original principal only.
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Interest for your account can be
distributed monthly, quarterly, or at maturity, depending on the product type
selected. -
You must maintain a minimum balance of $250.00 in your account
every day to obtain the annual percentage yield. -
The annual percentage yield assumes interest remains on deposit
until maturity. A withdrawal will reduce earnings. -
After the account is opened, you may not make deposits into the
account until the maturity date. -
If you withdraw any principal before the maturity date, a
penalty equal to 182 days loss of interest will be charged to your account,
whether earned or unearned. In the case of Certificates of Deposit of one year
or less, a penalty equal to 91 days loss of interest will be charged to your
account, whether earned or unearned. -
This account will be automatically renewed at maturity for a
like term unless otherwise specified in the Certificate. You have a grace period
of seven (7) calendar days after the maturity date to withdraw the funds without
being charged a penalty (see additional IRS regulations for IRA accounts).
The following IRA products compound interest daily and pay monthly or quarterly
depending upon customer choice:
12 Month
18 Month
30 Month
36 - 59 Month
60 Month
The following IRA products are true simple and pay monthly or quarterly
depending upon customer choice:
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91 Days | |
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182 Days | |
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12 Month | |
* | |
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36 Month | |
* | |
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60 Month | |
* | |
The following IRA product compounds and pays interest monthly or quarterly
depending upon customer choice:
*Products no longer offered at A.J. Smith Federal Savings Bank.
THE FOLLOWING IRS REGULATIONS
PERTAIN TO ALL IRA ACCOUNTS:
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In addition to an early withdrawal penalty assessed by A.J.
Smith Federal Savings Bank, the IRS also assesses a penalty for those
individuals closing an IRA CD before the age of 59-1/2. -
Disbursements from your IRA must begin at age 70-1/2. -
Investments may be tax deductible if you qualify. -
The maximum yearly contribution for an individual is
$3,000.00. This may vary according to your adjusted gross income shown on your
income tax return.
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