What is an IRA CD? Safety Meets Tax Advantage
An IRA (Individual Retirement Account) CD is the secure, simple option for saving money for retirement. It combines the stability of a Certificate of Deposit (CD) with the powerful tax benefits of an IRA. This account gives you two crucial advantages in one:
- Guaranteed Principal: Your savings are protected from market losses.
- Tax-Advantaged Growth: Your money grows faster because of special tax benefits (either deferred or tax-free).
Which IRA is Right for You? Traditional or Roth
The choice between a Traditional IRA and a Roth IRA depends on when you want to receive your tax benefit.
Traditional IRA
A Traditional Individual Retirement Account (IRA) is a retirement savings plan which enjoys preferential tax treatment. See your tax advisor for your potential IRA tax deductibility.
- Earnings are tax deferred
- Contributions may be tax deductible
- Contributions for the previous tax year may be made up to April 15th of the current year
For more information about Individual Retirement Accounts contact a Bank of St. Croix Employee or visit this link.
Roth IRA
A Roth Individual Retirement Account (IRA) is a retirement savings plan which enjoys tax free distributions, including earnings. See your tax advisor for your potential IRA tax deductibility.
- Earnings may grow tax free
- Qualified distributions are tax free
- Contributions for the previous tax year may be made up to April 15th of the current year
For more information about Individual Retirement Accounts contact a Bank of St. Croix Employee or visit this link.
Searching for the Best Retirement Plan for Small Business? Meet the SEP IRA CD.
If you are a small business owner or self-employed and need a high-limit, low-risk plan, the SEP (Simplified Employee Pension) IRA CD is designed for you. It allows you to make large, tax-deductible contributions for yourself (and your employees) while protecting those contributions with the safety of a CD.
- High Limit: Save significantly more each year than with a regular IRA.
- Simple & Flexible: Easy to set up and you choose how much to contribute each year—zero hassle.
- Guaranteed: Your large contributions are protected with a locked-in interest rate.
Simplified Employee Pension IRA
A Simplified Employee Pension (SEP) is a written arrangement that allows an employer to make deductible contributions for the benefit of participating employees. The contributions are made to individual retirement accounts (IRAs) set up for participants in the plan.
For more information about Individual Retirement Accounts (IRA’s) contact a Bank of St. Croix employee or visit this link.
Disclosures will be provided at account opening. Products may vary by region. See your tax advisor for your IRA potential tax deductibility.
Ready to Open an IRA CD with Bank of St. Croix?
When you’re ready to start saving for retirement, you need a partner you can trust. We combine secure, competitive rates with personalized, local service.
- Local Expertise: We are the Bank of St. Croix, focused entirely on the financial well-being of our community.
- Easy Setup: We provide the easy way to open an IRA—no confusing forms or hidden fees. We guide you step-by-step.
- Trusted Stability: Your funds are secure with a community bank known for integrity and stability.
Stop putting off your financial future. It’s never too early—or too late—to begin! Visit one of our local banking centers to see how easy it is to set up a Bank of St. Croix retirement account today.
