Certificate of Deposit/IRAs
- Certificates of Deposit (CD)
- Individual Retirement Arrangement (IRA)
- CDARS (Certificate of Deposit Account Registry Service)
- ICS (Investment Cash Sweep)
Certificate of Deposit (CD) is a formal receipt issued by the bank for an amount of money deposited to the bank for a specified amount of time, known as a term. CDs are also referred to as Time Deposits. You must deposit at least $1,000 to open this account. It is an interest bearing account that compounds and credits interest monthly. Standard terms available are 6, 12, 18, 24, 30, 48, and 60 months. Please refer to our current rate sheet for the Certificate of Deposit interest rates.
CD Specials are offered periodically with different terms, rates, and conditions. They may be offered and discontinued at any time. Currently we are offering 3 CD Specials:
23 Month Bump-Up is a 23 month term CD that offers you the option to “bump-up” your interest rate once during the term if our rates should rise. It is your voluntary choice when to exercise this one bump-up feature during the 23 months when rates have risen. This product is great for someone who wants to take advantage of longer term CD rates today but also speculates rates might increase before their term matures.
27 Month Bump-Out is a 27 month term CD that offers you the option to “bump-out” once during the term, penalty free, up to 50% of the original balance. This product is designed for the customer who wants to take advantage of longer term CD rates today but fears they might need some of the money for an upcoming expenditure prior to the maturity.
36 Month Add-On is a 36 month term CD that offers you the option to “add-on” to the original CD in increments of $1,000 or greater for an unlimited number of times during the term. This product is ideal for someone who wants to take advantage of longer term CD rates today and roll other CDs elsewhere into this product as they mature.
Individual Retirement Arrangement (IRA) may be established for an individual or their spouse who is employed and pays taxes in the United States. You must deposit at least $10 to open this account. It is designed to help taxpayers save for retirement. Minimum age to contribute is 18 and contributions can be deducted from income reported to the IRS. Penalties may apply to withdrawals made before an individual is age 59 ½. Required minimum distributions apply to most individuals over the age of 70 ½.
In addition to our traditional IRA’s we offer the following:
Roth IRA is an individual retirement arrangement that allows savings to grow tax free. Contributions are non-deductible and made with after-tax dollars. Minimum age requirements and bank penalties may apply similar to that of a traditional IRA.
Simplified Employee Pension (SEP) is a retirement plan established by an employer. Each year the employer can contribute a certain percentage of each eligible employee’s compensation directly into the employee’s traditional IRA.
CDARS (Certificate of Deposit Account Registry Service) is offered through a third party vendor, Promontory Interfinancial, to customers who desire full FDIC insurance coverage on their Certificates of Deposit in excess of the $250,000 maximum coverage at a single institution. Large deposits are broken into smaller amounts and placed with other banks that are members of the CDARS network. Everything is handled through First Colebrook Bank with one monthly statement listing all CDs registered and one 1099-INT at year end. Maturity terms range from 4 weeks to 5 years. Please contact your local branch Customer Service Representative for current CDARS rates.
ICS (Investment Cash Sweep) is offered through a third party vendor, Promontory Interfinancial, to customers who desire full FDIC insurance coverage on their Money Market funds in excess of the $250,000 maximum coverage at a single institution. Large deposits are broken into smaller amounts and placed with other banks that are members of the ICS network. Everything is handled through First Colebrook Bank with one monthly statement listing all Money Markets registered and one 1099-INT at year end. Funds are available for withdrawal for same day or next day withdrawal. Please contact your local branch Customer Service Representative for current ICS rates.
