It’s never too early or too late to start saving for retirement — especially when you get tax benefits.* You can also start saving for college early on, too.

Rates

Key Features

  • Tax Advantages*
  • Competitive Dividends
  • No Setup or Maintenance Fees
  • Tax-advantaged retirement savings*
  • Traditional, Roth, Coverdell, and SEP IRA options
  • Annual contribution limits apply (see current contribution limits; $6,000 as of 2021) 

Tax-advantaged retirement savings*. Competitive dividends above standard savings rates. Traditional, Roth, Coverdell, and SEP IRA options. No setup fees, no monthly or annual maintenance fees.  

Annual contribution limits apply (see current contribution limits; $6,000 as of 2021). Additional $1,000 "catch-up" contribution allowed for ages 50+. Funds can be used to purchase share certificates within IRA. $100 minimum deposit to open.

Learn more about the IRA as a tool for retirement savings.

You may also find value in this course on when to collect social security.

If you're concerned about whether you'll have enough for retirement, please see this helpful article.

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 tax2 
  • Earnings are tax deferred until withdrawal (when usually in lower tax bracket) 
  • Withdrawals can begin at age 59½ 
  • Early withdrawals subject to penalty3 
  • Mandatory withdrawals at age 72   

Roth IRA 

  • Income limits to be eligible to open Roth IRA1 
  • Contributions are NOT tax deductible 
  • Earnings are 100% tax free at withdrawal2 
  • Principal contributions can be withdrawn without penalty2 
  • Withdrawals on interest can begin at age 59½ 
  • Early withdrawals on interest subject to penalty3 
  • No mandatory distribution age 
  • No age limit on making contributions as long as you have earned income   

1Consult a tax advisor. 

2Subject to some minimal conditions. Consult a tax advisor. 

3Certain exceptions apply, such as healthcare, purchasing first home, etc. 

Create an easier transition into college for yourself and your student by setting up a savings account early. A Coverdell Education Savings Account (ESA) provides a tax-free safe place to grow competitive dividends and also financial confidence for a new stage in life. 

  • Set aside funds for your child's education 
  • No setup or annual fee 
  • Dividends grow tax-free 
  • Withdrawals are tax-free and penalty-free when used for qualified education expenses1 
  • Designated beneficiary must be under 18 when contributions are made 
  • To contribute to an ESA, certain income limits apply2 
  • Contributions are not tax deductible 
  • $2,000 maximum annual contribution per child 
  • The money must be withdrawn by the time he or she turns 303 
  • The ESA may be transferred without penalty to another member of the family 
  • $100 minimum deposit to open 

More Information

This investment tool was created to help parents (as well as family members and friends) pay for the future cost of a child's post-secondary education. The plan allows total after-tax contributions of $2,000 per year for each child until they reach the age of 18. These contributions and their subsequent earnings are tax-free when withdrawn to pay for qualified education expenses.

What is a qualified higher education expense?

A qualified higher education expense is one that is required for the enrollment or attendance by your child at an eligible educational institution. These expenses include:

  • Tuition
  • Fees
  • Books
  • Supplies, and
  • Equipment

1Qualified expenses include tuition and fees, books, supplies, board, etc. 

2Consult your tax advisor to determine your contribution limit. 

3Those earnings are subject to income tax and a 10% penalty.

*Consult a tax advisor.