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 3 months 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 The funds are not taxed until withdrawn during retirement.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are not deductible from your taxable income today, but the contribution and earnings can grow tax-free and be withdrawn tax-free during retirement.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.