These net-worth building accounts offer the ideal way to save for retirement while reducing the total income taxes you pay in your lifetime. Money you invest in a traditional IRA may be tax-deductible from your income today. The money only counts as income when you make withdrawals and you pay taxes on it then. Roth IRAs work the opposite way: contributions are not tax-deductible, but distributions are tax-free.

United Bank offers you the choice of earning a fixed rate of interest or variable rate with either a traditional or Roth IRA. IRA Certificates of Deposit (IRA CODs) are set up for the duration of your choice, from 90 days to 5 years, and earn a fixed rate of interest for the entire term. Variable IRAs, conversely, earn variable rates of interest (tied to market indexes) and have no set maturity date. Deposits are made at initiation with IRA CODs, while Variable IRAs allow for periodic deposits, including automatic scheduled deposits from your checking or savings accounts. The funds in both IRA CODs and Variable IRAs are FDIC-insured to the legal limit, and both are subject to substantial IRS penalties for early withdrawal.

IRA Certificates of Deposit Account Features

Minimum opening deposit and terms	$500. Terms from 90 days to 5 years
Monthly service charges	None
Interest	Fixed for the term of the certificate Compounded monthly Paid monthly
Withdrawals	Substantial IRS penalty for early withdrawal

 

Variable IRAs Account Features

Minimum opening deposit and terms	$5 with automatic deposits $100 with no automatic deposits
Monthly service charges	None
Interest	Variable rate Compounded monthly Paid monthly
Withdrawals	Substantial IRS penalty for early withdrawal

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