Certificate of Deposit (CD)
If you’re looking to earn a higher interest and don’t need immediate access to your funds, consider opening a CD. Since CDs are FDIC-insured, you’ll enjoy the security of a savings account with the higher interest associated with an investment.
With a CD, your savings are invested at a set rate for a specified period of time. You’ll typically receive a higher interest rate on CDs with longer terms and higher balances. Early withdrawal penalties may reduce earnings.
Features Choose from maturity term options ranging from 3 to 60 monthsReceive a fixed interest rate on your daily balance until maturityOpen with as little as $500Pay no service feesEliminate the uncertainty of investingEnjoy the security of FDIC insurance
Certificate of Deposit Account Registry Service® (CDARS®)
CDARS provides one-stop shopping for your multi-million dollar CD investments. Access FDIC insurance protection on deposits up to $50 million, all through one monthly statement and one account relationship with Bank Iowa.
When you place a large amount with us, we place your funds into CDs issued by other banks in the CDARS network – in increments of less than the standard FDIC insurance maximum – so both principal and interest are eligible for complete FDIC protection. As a result, you receive coverage from multiple banks while working with just Bank Iowa.
Features Enjoy full FDIC insurance on deposits up to $50 millionManage all CD investments through a single relationshipReceive a single monthly statement with detailed listingChoose from flexible maturity periodsHave interest paid directly to you or an account you designate
CDARS is a registered service mark of Promontory Interfinancial Network, LLC.
Individual Retirement Account (IRA)
IRAs offer special advantages for the savings you've earmarked for your retirement. With FDIC insurance up to $250,000 and free and flexible distribution options, IRAs are a great way to fund your personal retirement savings plan. Whether you want a Traditional or Roth IRA, Bank Iowa will help you plan successfully while maximizing your tax-free savings.
Traditional IRA Contributions are tax-deferred until withdrawalMay be eligible to deduct contributions on current tax returnsPenalty-free early withdrawal for certain expenses (buying a first home, college, uninsured medical coverage, etc.)
Roth IRA Unlike Traditional IRAs, incurs the tax now“Qualified distributions” will be tax freeIncome is taxed now, when you are working, instead of when on fixed incomePenalty-free early withdrawal for certain expenses (buying a first home, college, uninsured medical coverage, etc.)
Health Savings Account (HSA)
HSAs provide a convenient, tax-advantaged way to make healthcare more affordable for those with a high deductible health plan. Tax-exempt contributions can be used to pay for qualified health care expenses for you and your family at any time without tax liability.
Features Make tax-deductible contributions – up to $3,100 for individual coverage or $6,250 for family coverageSave money for future medical costs while earning tax-free interestPay expenses just as you would from any checking accountCarry-over your balance automatically from year to yearKeep your HSA with you even if you change jobs, change medical coverage, become unemployed, move out of state or change your marital statusAlso use to supplement income at retirement age of 65 or older or in case of disability
Requirements Must be under age 65 and have coverage under an HSA-qualified, high-deductible health planCannot be covered under another type of health plan or be enrolled in MedicareMust not be claimed as a dependent on another person's tax returnMaximum out-of-pocket expenses for individuals is $6,050 and $12,100 for families
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