Share Certificates (CDs)
Share Certificates or Certificates of Deposit (CDs) are traditionally one of the fastest ways to shave for diverse purchases.
• Certificates always hold their original value
• Accrue interest over time
• Terms offered vary from three months to one year
• Dividends earned are always higher than regular savings account rates
Certain penalties may apply to any withdrawal prior to the maturity date. Federally insured to $100,000 by the National Credit Union Administration, a U.S. Government Agency
APR is the Annual Percentage Rate. APR (Annual Percentage Rate) is simple interest without compounding. For example, $10,000 @ 6.00 APR for 2 years will produce $600 of interest per year (or $300 semiannually, or $150 quarterly, or $50 monthly). APY (Annual Percentage Yield) is compounded interest (usually daily or monthly) calculated for 1 year (even if the term is longer). For example, $10,000 @ 6.00 APR for 2 years compounded monthly, produces a 6.17 APY which returns a total of $11,272.07 after 2 years.
APY is the Annual Percentage Yield. The Annual Percentage Yield (APY) is accurate as of August 11, 2008. Dividends on your savings are calculated daily, paid monthly, and are shown on your quarterly statement. Fees could reduce earnings on the account. Rates may change after the account is opened. For more current rates please contact the credit union.
Education IRA Accounts
Unlike traditional and Roth IRA’s, Coverdell IRA’s are not tools for retirement savings. They are designed solely to help pay higher education expenses.
- Earnings on the funds in a Coverdell IRA will be tax free (if used to pay for higher education expenses before the designated beneficiary reaches age 30)
- Earnings are taxable to the designated beneficiary (not the responsible individual or contributor) if withdrawn for other purposes.
- Encourages a savings program for child’s education
- Persons, such as grandparents, can fund the IRA
- Start-up fee $10.00
- Annual maintenance fee $10.00
- Close Account fee $10.00