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Stroud National Bank

Savings

SNB Savings options can help you survive an unexpected crisis or seize an unanticipated opportunity. Money in a CD, IRA or Savings Account keeps growing through the compounding of interest.


CDs & IRAs

Certificates of Deposits (CDs) and Individual Retirement Accounts (IRAs)

Certificates of Deposit

If you are looking for a safe and secure way to earn a higher rate of interest than a savings account, our CDs are for you! Terms are convenient and flexible for your saving needs with maturity dates available from 91 days to 5 years with opening deposits as little as $1,000.

Benefits and Features

  • Competitive interest rates for a specified term
  • Maturity dates from 91 days to 5 years
  • Interest may be paid at maturity, or compounded monthly, quarterly, semiannually, or annually
  • CDs may be automatically renewed
  • Early withdrawal penalties may apply
  • CDs with maturities of 18 months may “bump” their interest rate one time during the term of the CD.  CDs with maturities of 30 months may "bump" their interest rate twice during the term of the CD.  So if interest rates go up, your earnings can too.
  • FDIC Insured

The SNB CD Ladder

Want to receive higher interest rates than other savings methods, have faster access to your funds, and keep your principal secure? Consider putting some of your money in a ladder of CDs from SNB.

To build a ladder, divide your money between CDs of staggered maturities - say, four CDs with maturities ranging from one to four years. Each CD earns a different rate; the longer the maturity, the higher the rate. You maintain the ladder by reinvesting. When a one year CD matures, for example, you buy a new four year CD. You’ll have a CD mature every year, but earn a higher overall rate than you would in a one year CD. And, after four years your CDs will be earning the 4 year rate that was in effect in each year they were purchased.


Individual Retirement Accounts (IRAs)

IRAs are one of the simplest of retirement plans: you fill out a form and contribute the money yourself. 

 

IRA Types

Traditional IRA

Roth IRA

SEP IRA

Appeals to eligible Investors who:

Anticipate being in a lower tax bracket in retirement; or Meet the criteria for making tax-deductible contributions and are most interested in a current tax deduction

Earn less than $110,000 (single) or $160,000 (joint). Expect their tax bracket to be the same or higher in retirement age. Most interested in passing IRA assets to their heirs. May not need their IRA assets.

Are self-employed individuals or business owners with employees. Prefer a plan that is easy to set up and maintain.

Account Description

Your earnings grow tax-deferred, and, if eligible, your contributions may be tax deductible as well. You can also roll over your 401(k) or retirement employer-sponsored qualified plan to consolidate your retirement assets.

You make after-tax contributions, but the money you withdraw after retirement may be free from federal taxes.

Small business owners can make tax-deductible contributions with this flexible plan that is easy to set up and maintain. If you have employees, you may be required to contribute for them as well.

Eligibility to Contribute

You can contribute up to the year you turn 70-1/2 as long as you have earned income.

You can contribute at any age as long as you have earned income and meet the income limits.

You can contribute at any age if you are self-employed or a small business owner.

Maximum Annual Contribution

Lesser of 100% of earned income, or Under age 50 - $5,500, Over age 50 - $6,500

Lesser of 100% of earned income, or Under age 50 - $5,500, Over age 50 - $6,500

As a small business owner you can contribute up to 25% of your compensation or $42,000, whichever is less.

Taxation of earnings & withdrawals

Tax-deductible contributions and earnings are taxed as ordinary income when withdrawn.

Contributions (all are made after-tax) and earnings are income tax-free if the account is held for 5 years and are withdrawn for a qualified reason. Withdrawal of earnings for non-qualified reasons may be taxed as ordinary income and subject to an early withdrawal penalty.

Tax-deductible contributions and earnings are taxed as ordinary income when withdrawn.

Withdrawal Penalties

10% IRS early withdrawal penalty if withdrawn before age 59-1/2 unless exception applies; and 6 month interest penalty may apply on early CD withdrawal before age 59-1/2

No IRS penalties for withdrawal of contributions. 10% IRS early withdrawal penalty if earnings are withdrawn before age 59-1/2 unless exception applies. Six (6) month interest penalty may apply on early CD withdrawal before age 59-1/2





Savings Accounts

Account Type
More Info Minimum Balance to Open Maintenance Charge Minimum Balance to Earn Interest Checks or Withdrawals Per Month
Savings Account More $100 No fee with $25+ Average Daily Balance. $0 6 withdrawals per 3 month statement cycle. $2 for each excess withdrawal.
Children's Savings More $25 No fee with $25+ Average Daily Balance. $0 6 withdrawals per 3 month statement cycle. $2 for each excess withdrawal
 

Savings Accounts


Benefits and Features

  • Minimum opening deposit -  $100
  • Minimum opening deposit for a child’s account - $25
  • Automatic savings - customers may elect to have regular transfers made automatically
  • Interest is credited and compounded quarterly
  • No balance fee if average daily balance is above $25.00 per quarterly statement period.
  • $3.00 balance fee if average daily balance falls below $25.00 per quarterly statement period.
  • Withdrawals are limited to six per quarterly statement cycle.
  • There is a $2 charge for each withdrawal in excess of six per quarterly statement cycle.
  • Online Banking
  • 24 Hour Telephone Banking
  • FDIC Insured

Children's Savings

It's never too early to start saving — especially with this low minimum balance account designed for young people under the age of 18.

Benefits and Features

  • Minimum opening deposit for a child’s account - $25
  • Automatic savings - customers may elect to have regular transfers made automatically
  • Interest is credited and compounded quarterly
  • No balance fee if average daily balance is above $25.00 per quarterly statement period.
  • $3.00 balance fee if average daily balance falls below $25.00 per quarterly statement period.
  • Withdrawals are limited to six per quarterly statement cycle. There is a $2 charge for each withdrawal in excess of six per quarterly statement cycle.
  • Online Banking
  • 24 Hour Telephone Banking
  • FDIC Insured

This information is provided for marketing purposes and is not defined by the Truth In Savings Act. If you are interested in obtaining full disclosures, of any account described, please contact a Stroud National Bank customer service representative.