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A penny saved is a penny earned — so why squander it all before retirement? Be smart and open an IRA while you're still earning income.

Key Features

  • Competitive Interest
  • No Monthly or Annual Fees
  • Tax Advantages1
  • Competitive interest above standard savings rates
  • Traditional and Roth IRA options
  • No setup fees
  • No monthly or annual maintenance fees
  • Annual contribution limits apply
  • Additional $1,000 "catch-up" contribution allowed for ages 50+
  • Funds can be used to purchase CDs within IRA
  • $100 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 tax1
  • Earnings are tax deferred until withdrawal (when usually in lower tax bracket)
  • Withdrawals can begin at age 59 ½ without penalty
  • Early withdrawals may be subject to an IRS penalty2
  • Mandatory withdrawals begin at age 70 ½ 
  • Age limits appy to contributions - Must have qualified income

Roth IRA

  • Income limits to be eligible to open Roth IRA3
  • Contributions are NOT tax deductible
  • Earnings are 100% tax free at time of withdrawal if the distribution is qualified1
  • Principal contributions can be withdrawn without penalty1
  • No mandatory distribution age
  • No age limit on making contributions as long as you have earned income 
  • Withdrawals may be subject to taxes and penalty, depending on your age, the five year period and other conditions
  • No age limit on making contributions as long as you have qualified income

1Subject to some minimal conditions. Consult a tax advisor.

2Certain exceptions apply, such as healthcare, purchasing first home, etc. Consult a tax advisor.

3Consult a tax advisor.

Lay a foundation of success for your child or a child you know — start saving early for educational expenses with a Coverdell Education Savings Account.

Your contributions will earn competitive interest, tax-deferred. When it comes time for your recipient to withdraw funds, the funds are tax-free as long as they're applied to qualified educational expenses. Prepare your child for a bright future today — apply for your account online in minutes.

Details:

  • Save for a child's future educational expenses
  • No annual maintenance fee
  • Earnings grow tax-deferred
  • Distributions are tax-free when applied to qualified education costs
  • Can be opened by anyone — not just family members of a child
  • Can be opened for any child younger than age 18
  • Special needs children may be eligible after they reach 18
  • No minimum deposit to open 

Account Requirements:

  • Contributions limited to $2000 annually
  • Contributions are not tax-deductible
  • Contributions must stop when beneficiary reaches age 18
  • Beneficiary must withdraw remaining assets within 30 days after reaching age 30, or roll assets over tax-free to a new Education ESA for the benefit of another eligible family member
  • Distributions not used for qualified educational expenses are taxable, and subject to a 10% penalty
  • Taxpayers filing jointly with AGI (Adjusted Gross Income) below $190,000 are eligible to contribute (eligibility phases out as AGI increases from $190,000 to $220,000).
  • Single filers with AGI below $95,000 are eligible to contribute (eligibility phases out as AGI increases from $95,000 to $110,000)

1Consult a tax advisor.