CDs and IRAs

Certificate of Deposit (CD)

Bank of Pensacola offers a variety of CD products and are available in terms ranging from three to 12 months.

Account Features:

• Available in 3, 6, or 12 month terms
• Interest and maturity notices

How much interest will it earn? What is the minimum balance required to open the account? How is interest calculated? When is interest paid? How can interest be paid? Are there any fees? How do you apply?

Individual Retirement Accounts (IRA)

Bank-offered IRAs are a great way to save for retirement, as they are FDIC insured up to $250,000 per depositor. Individual Retirement Accounts give you tax advantages for long-term retirement savings. The sooner that you start contributing to an IRA and the longer you let your money grow, the more you benefit.

Account Features:

• Choose between Traditional or Roth IRAs
• Annual Fair Market Value statements

How much interest will it earn? What is the minimum balance required to open the account? How is interest calculated? Does the interest rate change? How do you apply?

Benefits

• You establish and control your own private retirement program.
• You can have an IRA in addition to any other retirement plans you participate in — a corporate, government, or union retirement program.
• You may contribute up to $6,000 plus the annual cost of living adjustment, if any, or 100% of earned income annually, whichever is less.
• You enjoy flexibility in how and when you contribute.
• Contribute your allowable maximum – or less.
• Contribute every year or once every few years – it’s your choice.
• Tax-deferred growth and possible tax-deductibility with a Traditional IRA.
• Tax-free growth and tax-free qualified distributions with a Roth IRA.

Traditional IRA versus Roth IRA

Deciding whether to open a Traditional or Roth IRA is a major decision. Both forms of the IRA are ways to save for retirement; however, each offers different advantages. Compare IRAs below and decide which is best for you!

Traditional IRA	Roth IRA
Tax deductible contributions (depending on income level, tax filing, and active-participant statuses).	Contributions are not tax deductible.
Withdrawals begin at age 59 1/2 and are mandatory by 72.	No mandatory distribution age.
Taxes are paid on earnings when withdrawn from the IRA.	All earnings and principal are 100% tax free if rules and regulations are followed.
Available to everyone; no income restrictions.	Available only to single-filers making up to $125,000-140,000 or married couples making a combined income up to $198,000-208,000 annually.
All funds withdrawn (including principal contributions) before 59 1/2 are subject to a 10% penalty.	Principal contributions can be withdrawn any time without penalty (subject to some minimal conditions).

* Please consult a legal or tax professional for investment and/or tax advice.
For additional information about our CD or IRA options, contact our Customer Service Representatives at 1-800-874-3121.