CDs & IRAs

CERTIFICATES OF DEPOSIT:

A CD is an investment for a specific term with a set yield. You can select the term that works the best for you.

  • $500 minimum balance to open
  • Terms ranging from 30 days to 5 years
  • 10 day grace period to change your CD or withdraw your money after maturity date without penalty
  • Interest can be paid to the certificate of deposit account, deposited to a Farmers and Merchants State Bank checking or savings account, an interest check can be mailed to you, or sent via ACH to other financial institution

INDIVIDUAL RETIREMENT ACCOUNTS (IRAs)

TRADITIONAL IRA:

  • Deductible contributions
  • Tax-deferred growth of earnings
  • Maximum annual contribution of up to $5,500 or 100% of compensation, whichever is less
  • No contributions after age 70 ½
  • Distributions must begin at age 70 ½

ROTH IRA

  • $500 minimum balance to open
  • IRA CD's compound quarterly
  • Non-deductible, after-tax contributions
  • Tax-free earnings and distributions (if qualified distribution is made)
  • Maximum annual contribution of up to $5,500 ($6,500 if you're age 50 or older) or your taxable compensation for the year
  • Contributions permitted after age 70 ½
  • Distributions not required after age 70 ½

FDIC Information

Your deposits are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per depositor, per insured bank, for each account ownership category. To learn more about the FDIC, visit them online at: www.fdic.gov.