IRA Certificates of Deposit
Our Individual Retirement Account certificates of deposit (IRA CDs) are a secure investment vehicle that can increase your savings potential within your retirement portfolio. Traditional IRAs offer a great way to save for the future; Roth IRAs are a great choice for younger people or those who expect to be in a higher tax bracket when they retire; our Education IRAs are perfect for parents who want to start saving for their child(ren)’s education.
Our low minimum balance and flexible terms make it easy for all members to add to their retirement nest egg and we can help you open a new IRA CD or rollover an existing IRA. Because of the variety of advantages each type of IRA provides, we recommend speaking to one of our member service consultants (call 1-800-371-5162) to learn which type of IRA CD best serves your needs. We suggest that you seek tax counsel to learn more about tax consequences before opening an IRA CD.
BENEFITS
FLEXIBLE TERMS
VSECU certificate terms feature a fixed-rate annual percentage yield (APY).
LOW MINIMUM DEPOSIT
The minimum deposit required to open any certificate is only $500
HIGH ANNUAL YIELD
Certificates have a higher APY than regular savings for long-term investments.
NCUA INSURED
Each certificate is insured by the NCUA for up to $250,000 aggregate per member.
Traditional IRA
When it comes to planning for your retirement, your mantra should be “save early, save often.” A Traditional IRA is a savings plan where contributions may be tax-deductible and interest earnings are tax-deferred. Not only do you get the benefit of saving with a great interest rate on a term certificate, but you may also be able to reduce the amount of money you owe in income taxes when you make a contribution.
FEATURES
TAX OPTIONS
Contributions you make to Traditional IRAs offered by VSECU may be tax deductible.
TAX DEFERRED EARNINGS
Taxes on Traditional IRA earnings may be deferred until retirement.
ACCOUNT TYPES
You can start with a brand new Traditional IRA or rollover an existing investment into an IRA.
All future withdrawals are treated as taxable income. At VSECU we want to help all Vermonters ensure their financial stability in retirement.
RATES
| Account Type | Minimum Daily Balance to Earn APY | Minimum Balance to Open Account | APY |
|---|---|---|---|
| IRA Savings | None | $25 | 0.05% |
| One-Year Certificate | $500 | $500 | 0.30% |
| Two-Year Certificate | $500 | $500 | 0.20% |
| Three-Year Certificate | $500 | $500 | 0.20% |
| Four-Year Certificate | $500 | $500 | 0.20% |
| Five-Year Certificate | $500 | $500 | 0.20% |
APYs effective as of 4/1/2021 and may change at maturity. Fees could reduce earnings. Early withdrawal penalties may apply. Seek legal counsel to learn more about tax consequences for IRA certificates.
Roth IRA
A Roth IRA allows you to make non-deductible contributions to a retirement account. Earnings and withdrawals from these accounts are generally tax-free. A Roth IRA is a good choice if you are younger or expect to be in a higher tax bracket when you retire.
FEATURES
TAX DEDUCTIBLE
Contributions you make to Roth IRA offered by VSECU may be tax free.
MAKE EARLY DISTRIBUTIONS
Early qualified distributions from your VSECU Roth IRA are allowed.
NO MINIMUM DISTRIBUTION
Minimum distributions are not required when you reach retirement age.
An advantage of our Roth IRA is that you are not required by law to take distributions after you reach the age of 70 1/2. If you are earning wages beyond this age, you can continue to make contributions to the account.
RATES
| Account Type | Minimum Daily Balance to Earn APY | Minimum Balance to Open Account | APY |
|---|---|---|---|
| IRA Savings | None | $25 | 0.05% |
| One-Year Certificate | $500 | $500 | 0.30% |
| Two-Year Certificate | $500 | $500 | 0.20% |
| Three-Year Certificate | $500 | $500 | 0.20% |
| Four-Year Certificate | $500 | $500 | 0.20% |
| Five-Year Certificate | $500 | $500 | 0.20% |
APYs effective as of 4/1/2021 and may change at maturity. Fees could reduce earnings. Early withdrawal penalties may apply. Seek legal counsel to learn more about tax consequences for IRA certificates.
Education IRA
VSECU offers an investment program specifically for Vermont parents looking to help fund their child(ren)’s future education. Our Education IRA can help you put away money a little at a time to help cover the cost of higher education.
FEATURES
TAX FREE WITHDRAWALS
Qualified withdrawals made from Education IRAs are not subject to taxes.
GREAT GIFT
An Education IRA works as a great gift for children or grandchildren.
$2K ANNUAL LIMIT
Up to $2,000 per beneficiary can be contributed to the Education IRA per year for children under age 18.
Although most of us recognize the term “Education IRA,” the accurate new name for this type of savings is a Coverdell Education Savings Account. This is a type of IRA that enables people to save for education expenses from grade school through college.
RATES
| Account Type | Minimum Daily Balance to Earn APY | Minimum Balance to Open Account | APY |
|---|---|---|---|
| IRA Savings | None | $25 | 0.05% |
| One-Year Certificate | $500 | $500 | 0.30% |
| Two-Year Certificate | $500 | $500 | 0.20% |
| Three-Year Certificate | $500 | $500 | 0.20% |
| Four-Year Certificate | $500 | $500 | 0.20% |
| Five-Year Certificate | $500 | $500 | 0.20% |
APYs effective as of 4/1/2021 and may change at maturity. Fees could reduce earnings. Early withdrawal penalties may apply. Seek legal counsel to learn more about tax consequences for IRA certificates.
Because of the various advantages each type of IRA provides, we recommend that you speak with a member service consultant to learn which type of IRA best serves your needs.
Are you interested in a wider range of retirement investment options and growth opportunities? MEMBERS Financial Services advisors work as a team to help members create a plan for meeting their short- and long-term financial goals; making investment, insurance, and retirement planning services available through CUNA Brokerage Services, Inc.
MEMBERS Financial Services Advisors are registered representatives. Securities sold, advisory services offered through CUNA Brokerage Services, Inc. (CBSI), member FINRA/SIPC, a registered broker/dealer and investment advisor, which is not an affiliate of the credit union. CBSI is under contract with the financial institution to make securities available to members. Not NCUA/NCUSIF/FDIC insured, May Lose Value, No Financial Institution Guarantee. Not a deposit of any financial institution. FR-3431353.1-0221-0323
