CDs and IRAs
Securant Bank & Trust® offers many Certificates of Deposits designed to help you achieve your savings and investment goals.
An Individual Retirement Account (IRA) is a safe way to earn tax-deferred growth on a retirement investment. An Securant Bank & Trust IRA assures maximum tax-deferred earnings now and provides an extra measure of comfort during your retirement. Choosing the correct IRA is an important decision. You also have the option of a Traditional, Roth or Educational IRA. Retirement accounts are separately insured by the FDIC.
We also offer other investment products, such as U.S. Savings Bonds, Commercial Paper, Treasury Bills and Treasury Notes, to round out your portfolio.
Certificates of Deposits
For clients who have excess funds, and do not see an immediate need for those funds in the near, or not so near, future. CDs provide a fixed rate of return on your investment.
- Special CD promotions are run from time to time
- Early withdrawal penalties are assessed when a withdrawal is made prior to maturity. An all interest, or three month interest or six month interest penalty, depending on the term of the CD, is assessed. These penalties apply, whether or not the interest has been earned. Therefore, the penalty could reduce the principal balance of the client’s account.
- Clients may choose to receive their interest quarterly, semi-annually, or annually. These interest payments can be received in one of three ways:
- Capitalized (compounded) - crediting of interest to the principal of the
- CD Check - a check for the amount of interest would be mailed to the client
- Transfer - the interest would be automatically transferred to an Securant Bank & Trust savings or checking account
- At maturity, CDs are automatically renewed at current market rates, unless the client otherwise notifies the bank. Approximately ten to fifteen days prior to maturity, clients are sent a maturity notice. They then have a ten-day grace period after the maturity date. During this period, the client can withdraw or reinvest their funds without penalty. Note: if the funds are withdrawn, interest will only be paid through the maturity date.
18 Month Account
- Variable rate interest paid monthly
- Interest rate indexed to 91 Day T Bill Discount Rate* plus 50 basis points (*Rate used is the rate established at Auction on the Third Monday of the prior month as published in The Wall Street Journal)
- Quarterly statements
- Minimum initial deposit
- Automatically renewable
- Monthly interest transfer available
- Additional deposits may be made at any time without changing the original maturity date
- Principal may be withdrawn within 10 days after maturity
- Principal may be withdrawn at any time with 18 months advance written notice
- Special withdrawal privileges for IRA accounts
Individual Retirement Accounts (IRA)
For the client who has earned income, and is under age 70 ½.
The Traditional IRA allows you to defer taxes on your earnings until they are withdrawn from the account. Also, certain contributions are tax deductible in the tax year for which they are made.
- No penalties applied to distributions (“withdrawals”) prior to age 59 1/2 if used for education or a first time home purchase
- Increased household income limits. Now, millions more Americans may make deductible contributions. Higher limits will be gradually phased in over the next 10 years, in varying amounts. In 1998, eligible income ranges increased
- Spouses now determine deductibility independently of one another. No longer “linked” to the other for active participation status, each spouse (employed or unemployed) now determines his or her own deductions
- The only IRA allowing tax deduction of contributions. Some income limitations apply
- Income tax on earning may apply on withdrawals. See your tax advisor.
The Roth IRA is a non-deductible account that features tax-free withdrawals for certain distribution reasons after a five-year holding period. Since contributions to a Roth IRA are non-deductible and taxed in the year they are earned, people who expect to be in a higher tax bracket when they retire may benefit more from a Roth IRA than a Traditional IRA.
- A non-deductible IRA with tax-free earnings. Earnings on this account are not taxed under two conditions: investments must be held for at lease five years; and they must be used for one of these qualified purposes - higher education, a first home ($10,000 limit), age 59 ½, death, or disability
Coverdell Education Savings Accounts (CESA)
You may save tax-free for your children or grandchildren's education by contributing up to $2,000 per year to an CESA for each child. After age 18, the funds can be withdrawn tax- and penalty-free if used for the child's qualified education expenses.
- A non-deductible IRA for education costs. This program’s express purpose is to help families save for children’s higher education. The subject child must be under the age of 18 when contributions are made. Anyone can contribute (subject to income limitations), and contributions are limited to $2,000 per year per beneficiary.
- Tax-deferred earnings.