CDs and IRAs are a great way to save over a longer period of time.
Certificate of Deposits (CDs) are an investment that offers safety and stability. It is a savings product that earns interest for a fixed period of time. Choose a term that fits your situation and you will earn a competitive, fixed rate of interest and you will also have several interest payment options.
Individual Retirement Accounts (IRAs) are a long-term savings account for retirement and offers tax advantages. Funds in IRA accounts can be invested in CDs or placed in a Savings account.
Contact a Customer Service Representative at your local branch for more information.
Certificate of Deposit (CD)
A certificate is a “time deposit”, meaning you have agreed to deposit a sum of money for a specified time period, during which you are not permitted to make withdrawals without the deposit being subject to an early withdrawal penalty.
Terms for CDs range from 90 days to 60 months. Contact your local branch for current interest rates*.
The minimum balance required to open a certificate is $1,000. Promotional rates may be subject to a higher minimum balance.
*Fixed rate and term. Rates are determined by bank and subject to change daily.
Individual Retirement Account (IRA)
First Farmers & Merchants has several different types of retirement accounts available. Options include Traditional, Roth, and SEP Plans. IRA accounts offer tax advantages.*
- Traditional IRA: Save pre-tax income toward retirement that can grow tax-deferred. The funds are not taxed until withdrawn during retirement.
- Roth IRA: Save after-tax income toward retirement. With a Roth IRA, the contributions are not deductible from your taxable income today, but the contribution and earnings can grow tax-free and be withdrawn tax-free during retirement.
- Simplified Employee Pension (SEP) IRA: Employers or self-employed individuals can establish SEP IRAs. These accounts allow a tax deduction for contributions made to the SEP IRA.
The investment types available within IRA accounts are Certificate of Deposits and Savings accounts.
*Consult a tax advisor for tax advice.