Individual Retirement Accounts (IRAs)
MINIMUM BALANCE REQUIRED
A minimum deposit is $1,000.00 is required to open any IRA. IRAs are interest bearing time deposits for retirement or education purposes. Contributions can be made to the account, however, you cannot exceed the annual IRA contribution limits provided by the Federal Government. Rollovers accounts from other IRAs, 401K accounts and similar retirement accounts can be contributed also.
Interest rates and annual percentage yields (A.P.Y.) are determined on a periodic basis. A separate rate sheet is available for the current rates.
COMPOUNDING AND CREDITING FREQUENCY
Interest rates are fixed until the maturity date of the IRA. Interest is compounded daily and credited semiannually to your IRA.
BALANCE COMPUTATION METHOD
We use the daily balance method to calculate the interest on your account. This method applies a daily periodic rate to the principal in the account each day.
An IRA is a contract to keep these funds on deposit until the due date and for the full maturity or any subsequent renewals. Under government regulations your deposit may not be withdrawn prior to maturity, except with our consent, which may be given at the time such request is made. A substantial penalty is required if we grant your request for early withdrawal. The Bank of Chestnut Policy on early withdrawals of Certificates of Deposit listed above is the same for IRAs. In addition, Federal tax regulations require penalty for early withdrawals. See your tax advisor for limitations and tax consequences. Federal regulations do allow early withdrawal without penalty from an IRA in the case of disability or attainment of age 59 1/2 by the depositor. We will exercise our discretion in considering any request for early withdrawal under either of these circumstances.
IRA’s are automatically renewable certificates. If an IRA renews automatically you will have a grace period of 10 days from maturity date to present this certificate for payment without penalty. If the certificate automatically renews, it will be renewed at the current rate in effect at the date of maturity.
This account requires a beneficiary to be named. In the event of death the funds in the account will be paid to the beneficiaries named in the account documents.