Individual Retirement Accounts

Prepare for your golden years with an IRA

An IRA offers a variety of tax advantages that can help you plan for retirement. You can choose between fixed and variable rates, as well as when to be taxed on your contributions.

Enjoy the following benefits with all Cumberland Security Bank IRAs:

• Earn interest on your balance
• Contributions may be tax deductible and interest income may be tax deferred
• Online Banking
• Mobile Banking
• Paperless eStatements

Additional Account Details:

• Traditional or Roth options are available
  • What’s the difference?: Traditional IRA contributions are tax-deductible on both state and federal tax returns for the year you make the contribution; withdrawals in retirement are taxed at ordinary income tax rates. Roth IRAs provide no tax break for contributions, but earnings and withdrawals are generally tax-free.
• $1,000 minimum deposit to open
• Term is for 18 months
• The Internal Revenue Service establishes limits for the maximum annual contributions to IRAs
• Interest details:
  • Fixed or variable rates are available
  • Simple interest calculation¹
  • Interest is credited semi-annually
  • If account is closed before interest is credited, you will receive the accrued interest.
  • Interest is computed using the Daily Balance²
  • Interest rates and annual percentage yields may change as often as weekly for variable rate IRAs or at maturity for fixed rate IRAs.
• Withdrawals before age 59-1/2 may be subject to a penalty of 6 months’ interest on the amount withdrawn. This penalty will be calculated using the rate in effect at the time of withdrawal.

¹Interest calculation is either simple or compound. Simple interest is interest paid only on the original balance. Compound interest is interest paid on the original balance plus the accrued interest.

²The Daily Balance is determined by the application of a daily periodic rate to the principal in the account each day.

IRA Rates

Rates current as of November 8, 2024.

Rates subject to change without notice.

*Annual Percentage Yield. The APY assumes interest remains on deposit until maturity. A withdrawal will reduce earnings.

Minimum Balance Requirement: A minimum deposit of $1,000.00 is required to open the account, and you must maintain a minimum balance of $1,000.00 on a daily basis to earn the APY.

Monitor your IRA balances with our electronic banking services