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 - $24,999.99.30%.30%
$25,000 - $49,999.99.35%.35%
$50,000 and over.40%.40%
IRA Savings Account
Effective March 3, 2020
$100 - and over.28 %.28%
IRA Certificates
12 month certificate.70%.70%
18 month certificate.80%.80%
24 month certificate1.00%1.00%
36 month certificate1.10%1.11%
48 month certificate1.20%1.21%
60 month certificate1.30%1.31%
Share Certificates
.
6 month certificate.48%.48%
12 month certificate.70%.70%
18 month certificate.80%.80%
24 month certificate1.00%1.00%
36 month certificate1.10%1.11%
48 month certificate1.20%1.21%
60 month certificate1.30%1.31%