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*The Interest Rate and Annual Percentage Yield
(APY)
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 | 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.
Features
| 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 |
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 After age 18, the funds can be withdrawn tax- and penalty-free if used for the child's qualified education expenses.
Features
| 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. |
*The Interest Rate and Annual Percentage Yield
(APY)
is
variable and may change at bank's discretion.
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EE & HH Bond Features
| EE Bond Denominations | EE Bond Cost | HH Bond Denomination/Cost |
| $50.00 | $25.00 | $500.00 |
| $75.00 | $37.50 | $1,000.00 |
| $100.00 | $50.00 | $5,000.00 |
| $200.00 | $100.00 | $10,000.00 |
| $500.00 | $250.00 | |
| $1,000.00 | $500.00 | |
| $5,000.00 | $2,500.00 | |
| $10,000.00 | $5,000.00 |
| Redemption available 6 months after purchase |
| Market interest on EE Bonds held five years or longer |
| Guaranteed minimum rate |
| Interest is exempt from state and local taxes |
| Replaced free, as of original issue date, if lost, stolen or destroyed |
| EE Bonds can be purchased as a gift |
| EE Bond interest accrues and is not Federally taxable until bonds are cashed in |
| $30,000 face amount ($15,000 issue price) annual limitation on purchases of EE Bonds |
| EE Bonds may be exchanged for current income HH Bonds, with continuation of tax deferral on accrued interest |
| HH Bonds available only on exchange for EE Bonds with a total redemption value of $500.00 or more, with no annual limitation or purchases |
| Semi-Annual interest checks issued on HH Bonds Bonds available within 15 days of application |
I Bond Features
| New series available after September 1, 1998 |
| Purchase price set at face value |
| Annual purchase limit of $30,000 per Social Security number |
| Offered in 6 denominations ranging from $50 to $5,000 |
The Series I Bond is an accrual type savings bond similar to the Series EE Bond, but issued at face value with a 30-year final maturity; a 20-year original maturity period immediately followed by a 10-year extended maturity period. Series I Bond interest earnings are inflation-indexed to protect investors’ purchasing power. The earnings rate will reflect a combination of a semi-annual inflation rate, the percent change in the Consumer Price Index over a 6-month period, and a fixed rate set by the Security of the Treasury.
For additional information visit www.savingsbond.gov
Definition
Short-term, unsecured Promissory Notes issued by major corporations,
wholly-owned financial subsidiaries of major corporations, and finance
companies.
Features
| Minimum Purchase | Fees |
| $100,000 (15 days or longer) | $25.00 |
| $250,000 (overnight to 14 days) | $25.00 |
| Flexible Maturities |
| Liability of the Issuer; funds not insured |
| Convenience of Direct Charge or Credit to account |
Treasury Bill Definition
Short-term, direct obligations of the U.S. Government
Treasury Bill Features
| Minimum Purchase | Fees |
| $10,000 and increments of | $25.00 Annual Safekeeping |
| $5,000.00 thereafter | $60.00 per purchase or sale |
| Insured by U.S. Government |
| Interest is exempt from state and local taxes |
| Purchased at a discount allowing the difference between face value and cost to be utilized |
| Convenience of Direct Charge or Credit to account |
| May be sold before maturity at the current market price |
| Flexible maturities up to one year |
Treasury Note Definition
Long-term, direct obligations of the U.S. Government
Treasury Note Features
| Minimum Purchase | Fees |
| $5,000 and increments of | $25.00 Annual Safekeeping |
| $1,000.00 thereafter | $60.00 per purchase or sale |
| Insured by U.S. Government |
| Interest is exempt from state and local taxes |
| Convenience of Direct Charge or Credit to account |
| May be sold before maturity at the current market price |
| Semi-Annual interest automatically deposited to account |
| Flexible maturities up to one year |
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Capitalized
(compounded) - crediting of interest to the principal of the CD
