These time deposit savings instruments have competitive interest rates and a variety of maturity and convenience options. The minimum deposit for most CDs is $1,000. The customer enters into an agreement with the bank to leave the funds for a specific period ranging from 30 days to 5 years. The rates are set for the duration of the CD. If a customer withdraws funds prior to the maturity date they will be penalized. This penalty will vary according to the length of the CD.
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- Certificate may be used as collateral for a loan
- Wide variety of interest payment options
- FDIC insures depositor up to $250,000
An Individual Retirement Account is a personal tax-sheltered retirement savings program. Individuals with earned income can make tax deductible contributions to an IRA, and get tax savings now and retirement income later. Williamsville State Bank and Trust currently offers these accounts in the form of a CD. The terms, conditions, and rates are the same as the regular CDs except the 6 month IRA CD can be opened for less than $1,000. Questions should be referred to a new accounts representative.
Customers should always consult their tax advisor before making a contribution. Not all of the contribution may be tax deductible.
- Contributions are accepted up to the lesser of 100 percent of earned income or $5,500 for 2013
- IRA accounts are insured by the FDIC up to $250,000
- Contributions can be made until April 15 of each year for the previous year
- $1,000 catch up contribution may be made if over age of 50
A variety of CD terms are available
This is a non-tax deductible account that features tax-free withdrawals for certain distribution reasons after a five-year holding period.
There are two requirements for eligibility to contribute to a Roth IRA: you or your spouse must have earned income and your modified adjusted gross income cannot exceed certain limits. Contributions can be up to 100% of your earned income or $5000 for 2013; whichever is less, as long as your modified adjusted gross income is within prescribed limits.
- If you take a nonqualified distribution the contributions are returned first and not subject to a tax penalty or taxation, if the distribution is qualified you pay no tax on the earnings, and you never have to take a withdrawal as in a Traditional IRA.