CDs and IRAs

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Save for Your Future with a CD or IRA

When you think about the future, do you feel anxious or prepared? At Peoples Trust & Savings Bank, we want to help you feel more secure about your financial future. The CDs and IRAs we provide can help fill your need, whether you have a low, medium or high-risk tolerance.

CDs- Certificates of Deposit

The more secure investment option, CDs allow you to grow your money over a certain period of time, all while receiving standard FDIC protection against losses.

Our CD accounts provide great flexibility, as they are available in varying maturity periods (91 days to 5 years) and come with numerous benefits:

  • E-Banking access for easy monitoring and management
  • Paper or E-Statements are available according to your preference
  • Guaranteed, competitive interest rates based on the term you choose.
  • Note: early withdrawals are subject to penalties

Call or stop by a Peoples Trust & Savings Bank location today to open your CD account and start saving securely for our future.

Individual Retirement Accounts- IRAs

Retirement accounts like those available at Peoples Trust & Savings Bank offer a place not only to help you save money for retirement, but receive various other benefits as well.

We offer both Roth IRAs and Traditional IRAs, which each have benefits designed to meet specific needs. To help you decide which is best for you, refer to the following table AND consult your tax advisor.

 

Roth IRARoth IRATraditional IRA

Taxes

  
Contributions
  • Contributions are not tax deductible.Contributions can be withdrawn at any time without taxes or penalties. 1
  • Contributions are fully tax-deductible if neither you nor your spouse participates in a 401(k) or other employer-sponsored retirement plan, or if your Modified Adjusted Gross Income falls below certain limits.
Earnings and Qualified WithdrawalsEarnings and qualified withdrawals are tax-free.

Earnings may be withdrawn without taxes or penalties if you are age 59 ½ or older and your account has been open for the five-year holding period.

Exceptions to penalties may be made if funds are used for certain purposes, including first-time home purchase ($10,000 lifetime limit), higher education, certain medical expenses, etc.
All earnings and tax-deductible contributions grow tax-deferred and are taxable upon withdrawal.

Penalties will be assessed if you make withdrawals before age 59 ½ or if withdrawals do not begin in the year you turn 70 ½.

Exceptions to penalties may be made if funds are used for certain purposes, including first-time home purchase ($10,000 lifetime limit), higher education, certain medical expenses, etc.
Contributions  
Maximum annual contributionFor 2016: up to $5,500; $6,500 for those age 40 or over.For 2016: up to $5,500; $6,500 for those age 50 and over.
EligibilityYou must have earned income.

Ability to contribute is based on your income. If you earn too much to make a full contribution, you may be able to make a partial contribution.
You must have earned income. There are no income limits.
Contribution age limitNoneUp to age 70 ½
Distribution

None

Required after age 70 ½

1 For Traditional-to-Roth conversions, any converted amounts withdrawn within five years may be subject to taxes and penalties.