Certificate Of Deposit - CD
A certificate of deposit (CD) is an investment account that holds a fixed amount of money for a fixed period of time, and in exchange, Lyndon State Bank will pay you interest. When you cash in or redeem your CD, you receive the money you originally invested plus any interest you have earned. Certificates of deposit are considered to be one of the safest savings options
Lyndon State Bank will issue you a certificate with a fixed maturity date and a specified interest rate. They can be issued in any denomination aside from minimum investment requirements shown on our rate sheet. Certificates generally pay a higher interest rate than savings account; making them a very popular investment for customers. When the CD matures, the entire amount of principal as well as interest earned is available for withdrawal.
CD’s are available to any depositor (Individuals, corporations, government entities, etc.) with terms from three months to five years. CD’s will automatically renew at the interest rate in effect on the maturity date if the funds are not withdrawn by the end of the 10 day grace period following maturity. Public funds CD will not automatically renew.
A CD restricts access to the funds until the maturity date; however the certificate may be withdrawn before the maturity date but would incur the following penalty.
Penalty for early withdrawal:
• 3-12 month CD Term- Loss of three months interest
• 12-60 month CD Term- Loss of six months interest
A CD bought through Lyndon State Bank is FDIC insured up to $250,000.
Not sure which CD is right for you? Use the following Certificate of Deposit Calculator to find the rate tier and interest payment options that best match your needs.
Individual Retirement Account - IRA
Traditional IRAA Traditional Individual Retirement Account (IRA) is a tax deferred savings plan to encourage you to save money for retirement. The earnings in the IRA remain tax deferred until you make withdrawals from the account. Individuals who are under 70 ½ years of age for the entire tax year and have earned compensation or received alimony may contribute to an IRA.
Roth IRAA Roth IRA Account is an Individual retirement account in which participants make non-deductible contributions to save for retirement. Unlike a traditional IRA where your earnings are tax-deferred, Roth IRA’s earnings can be tax-free. With a Roth IRA, unlike a Traditional IRA, you can continue to make contributions even after you have reached age 70 ½, provided you have income.
Traditional IRA & RothThe amount a qualified IRA owner is allowed to contribute in the tax years of 2016-2017 is $5,500.00. Qualified individuals that are over the age of fifty can make additional catch-up contributions for $1,000.00.
You are permitted to annually contribute the maximum amounts below or 100% of your earned compensation and alimony: whichever is less:
Maximum Contribution Limits
- Under age 50 - $5,500.00
- Over age 50 - $6,500.00
Traditional and Roth IRA owners may make contributions to both a Traditional and a Roth IRA however, it is important that your combined contributions not exceed the maximum contribution limit in a given tax year.
At Lyndon State Bank your IRA investment are insured through FDIC up to $250,000.00. All IRA accounts are insured separately from any other non-retirement accounts you may have with us.
You can open your IRA any time until your federal tax return is due which is normally, April 15 of the following year, excluding extensions. To open your IRA just come in and talk with us. We would be happy to explain the benefits of an IRA and our investment programs.