CDs & IRAs

The Commercial Bank offers CDs, Traditional IRAs and Roth IRAs.

• Certificate of Deposit (CD) - A certificate of deposit is a time deposit that is similar to a savings account in the sense that it is risk-free and insured by the FDIC.  It has a specific, fixed-term and a fixed interest rate, and is intended to be held until maturity, at which time the money can be withdrawn with the accrued interest.  There may be a penalty for early withdrawal.
• Traditional IRAs- Available to everyone with no income restrictions.  The contributions are tax deductible.  Funds can be used to purchase a variety of investments.  Withdrawals may begin at age 59 ½ and are mandatory by 70 ½.  Taxes are paid on earnings when withdrawn from the IRA.  The funds withdrawn (including principle contributions) before 59 ½ are subject to 10% penalty (subject to exception).
• Roth IRAs- Available only to single-filers making p to $95,000 or married couples making a combined maximum of $150,000 annually.  Contributions are not tax deductable.  All earnings are 100% tax free if rules and regulations are followed.  Funds can be used to purchase a variety of investments.  Principle contributions can be withdrawn at any time without penalty (subject to minimal conditions).  There is no mandatory distribution age.