Choose the savings account that is right for you. Our Personal Bankers are here to help you manage your accounts or offer advice on which products give you the benefits, savings, security, and convenience you desire.
Find some helpful children's savings tips here.
iAB Financial Bank's Money Market account offers tiered interest rates and limited check writing. A minimum opening balance of $2,000 is all it takes to get started. The $10 monthly service charge is waived if at least $2,000 is kept in the money market account.
Online Banking and check safekeeping are available with the Money Market account.
The Plus Account is a savings account for balances of $25,000 or higher, and earns market rates of interest based on balances. If you need to keep your assets liquid, this is a great account for cash while you are between investments.
Fatten your savings
Every time you use your iAB Financial Bank debit card, RoundUp rounds the purchase amount up to the nearest dollar, and automatically deposits the difference into the savings account of your choice. Choose your own savings account, a child's savings account. iAB’s RoundUp gives you a smart way to save.
Make holiday shopping a pleasure each year by opening a Christmas Club account. The money you save will automatically be deposited into your iAB Financial Bank checking or savings account in mid-October – just in time for the shopping season.
Most Christmas Club savers find that a systematic savings plan produces the best results. For example, you can have a set amount transferred from your iAB checking account or a payroll direct deposit on a regular basis.
1Regulation D limits certain types of withdrawal and transfer transactions you can make out of your Statement Savings, Money Market, Plus, or Christmas Club accounts to a maximum of six (6) withdrawals (excluding those made inside the branch or at an ATM ) made per monthly statement cycle. An Excess Activity Fee will apply for each transaction that exceeds the limit.
iAB Financial Bank offers CDs with high interest rates - typically higher than most financial institutions in the area! Minimum deposits begin at $500, and term lengths begin at 30 days. Premium rates are paid for balances greater than $25,000 on all terms.
With a wide variety of options and a guaranteed return on your investment, it may be easier than you thought to put money aside for the future!
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Traditional Individual Retirement Account (IRA)
A Traditional Individual Retirement Account (IRA) is a tax-advantaged arrangement that allows earnings and deductible contributions to grow tax-deferred.
Contributions may be deductible from your gross income on your federal income tax return for the year in which the contributions are made. Earnings grow on a tax-deferred basis. Deductible contributions and earnings are subject to federal income tax when withdrawn. (If you live in a lower-tax state when you withdraw contributions, you also save money on state income taxes.)
You must not attain the age of 70 ½ during the year you contribute to a Traditional IRA. You must also have earned income (compensation) in order to contribute to a Traditional IRA.
Annual contribution limits
In tax year 2012, you can make annual contributions to a Traditional IRA of up to $5,000 or 100% of your earned income, whichever is less. For individuals over the age of 50, a contribution of up to $6,000 is permitted. An aggregate of $10,000 can generally be contributed per married couple ($5,000 per IRA) provided that either you or your spouse has earned income of at least that amount. The $5,000 and $10,000 annual contribution limits apply to the combination of all of your Traditional and Roth IRAs.
In tax year 2013, after several years without an increase to the traditional and Roth IRA regular contribution limit, there will be a $500 increase. The IRA contribution limit will increase to $5,500 with a catch-up contribution of $1,000. For individuals age 50 and older, the contribution limit will be $6,500.
If you are age 50 or older, you may make additional "catch-up" contributions to your IRA. Over the next several years, the maximum annual contribution amount will increase.
Note: Additional "catch-up" contributions have been included in amounts shown for age 50 or older.
You may take distributions from a Traditional IRA starting at age 59½ - distributions taken before then are subject to taxes and tax penalties, unless taken for a qualified exception. You may take distributions in specific amounts, as a lump sum, or as a series of systematic payments. Distributions are taxed at ordinary income tax rates for the year the distribution was made. You are required to start taking distributions from your IRA by April 1 of the year following the year in which you reach age 70½.
The amount of your annual contribution to a Traditional IRA that can be deducted from your federal income taxes is dependent on two factors. These factors are whether or not you or your spouse participate in an employer sponsored retirement plan and the amount of your adjusted gross income as determined on your federal income tax return. The following scenarios should help you determine whether or not your contributions are deductible:
A Roth IRA is an Individual Retirement Account that provides tax-free growth. As a result, it's the simplest - and potentially the most effective - sheltered account imaginable.
The Roth Tax Advantage
Like a deductible IRA, Roth gives you the advantage of getting taxed only once, rather than twice (or more) as with a regularly-taxed investment account.
You pay income tax, and then make your contribution with post-tax dollars
Your principal may be subject to taxes on dividends and capital gains as it grows
You pay capital gains tax on your gain at withdrawal
You get a tax deduction, essentially letting you deposit pre-tax dollars
Your principal grows tax-free
You pay income tax on the entire amount of your withdrawal
You pay no further taxes on withdrawal
Roth IRA contribution limits
IRAs were created to encourage people to save for their retirement, by offering them a significant tax break. They are intended for ordinary working people.
The rules for limits change every year. You can (and should) get the official rules from IRS Publication 590.
An IRA is intended to be a retirement account, and so penalties apply if you misuse it by withdrawing funds too early. As a rule, you should plan not to make any withdrawals until at least age 59½ or five years after you make your first contribution, whichever comes later.
All information contained herein is intended to act as a guide in giving you an estimated allowable contribution limit. Contact your tax advisor for further information.
CDARS (Certificate of Deposit Account Registry Service) is the easiest, most convenient way to enjoy access to multi-million dollar FDIC insurance.
One Bank. Everything about your CDARS account is handled at iAB Financial Bank. Your large deposit is broken into smaller amounts and placed with other banks that are members of the CDARS network. Then, those banks issue CDs in amounts under the standard FDIC insurance maximum, so that your entire investment is eligible for FDIC protection. By working with just iAB Financial Bank you can receive insurance coverage through many.
One Rate. You earn one rate on your entire investment - so you can forget about multiple rate negotiations and the need to consolidate mulitple disbursement checks.
One Statement. You receive one regular account statement listing all of your CDs, along with their issuing banks, maturity dates, interest earned, and other details. With CDARS, there's no need to manually consolidate statements, track changing collateral values, or use private surety bonds.
That’s it! Using CDARS is just that easy.
To learn more about CDARS, talk to your iAB personal banker.
Watch video about CDARS.