IRA

IRA (Individual Retirement Account)

An IRA is an account set up at a financial institution that allows an individual to save for retirement with tax-free growth or on a tax-deferred basis. The three main types of IRAs each have different advantages:

  • Traditional IRA – You make contributions with money you may be able to deduct on your tax return, and any earnings can potentially grow tax-deferred until you withdraw them in retirement. Retirees also find themselves in a lower tax bracket than they were in pre-retirement, so the tax-deferral means the money may be taxed at a lower rate.
  • Roth IRA – You make contributions with money you’ve already paid taxes on (after-tax), and your money may potentially grow tax-free, with tax-free withdrawals in retirement, provided that certain conditions are met.
  • Rollover IRA – A Traditional IRA intended for money “rolled over” from a qualified retirement plan. Rollovers involve moving eligible assets from an employer-sponsored plan, such as a 401(k) or 403(b), into an IRA.

Whether you choose a Traditional or Roth IRA, the tax benefits allow your savings to potentially grow, or compound, more quickly than in a taxable account.

Current Deposit Rates

Type of PlanAccount Balance RangeAnnual Dividend RateAnnual Percentage Yield (APY)
Regular Share Savings Account/ Christmas Club Share Savings Account
.04%.04%
Money Market Share Savings Account
$1,000 - $9,999.99.30 %.30%
$10,000 - $24,999.99.34%.34%
$25,000 - $49,999.99.40%.40%
$50,000 and over.50%.50%
IRA Savings Account
Effective May 1, 2016
$100 - and over.28 %.28%
IRA Certificates
12 month certificate1.49%1.50%
18 month certificate1.70%1.72%
24 month certificate1.93%1.95%
30 month certificate1.98%2.00%
36 month certificate2.02%2.05%
48 month certificate2.22%2.25%
60 month certificate2.42%2.45%
Share Certificates
3 month certificate.09%.09%
6 month certificate.48%.48%
12 month certificate1.49%1.50%
18 month certificate1.70%1.72%
24 month certificate1.93%1.95%
30 month certificate1.98%2.00%
36 month certificate2.02%2.05%
48 month certificate2.22%2.25%
60 month certificate2.42%2.45%