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Business BankingIndividual Retirement Accounts (IRA)

It's never too early to think about retirement. Opening a Westbound Bank Individual Retirement Account now and contributing to it regularly can create a secure retirement scenario for your future. We offer two IRA options, starting at $500 minimum to open.


Individual Retirement Accounts (IRA)
TermMinimum Balance to Earn APYInterest RateAPY*Min. to Earn APYInterest
Rate
APY*Compound
 under $100,000 over $100,000  
12 Month$500.000.55%0.55%$100,0000.55%0.55%Quarterly
24 Month$500.000.80%0.80%$100,0000.80%0.80%Quarterly
36 Month$500.001.10%1.10%$100,0001.10%1.10%Quarterly
48 Month$500.001.20%1.21%$100,0001.20%1.21%Quarterly
60 Month$500.001.35%1.36%$100,0001.35%1.36%Quarterly

*APY = Annual Percentage Yield. The annual percentage yield assumes interest will remain on deposit until maturity. A withdrawal will reduce earnings on the account. If any of the principal is withdrawn before maturity, a penalty may be imposed. Rates are effective as stated above and are subject to change without notice. These CDs automatically renew.   Early CD withdrawl penalties may apply.

 

Traditional IRA
  • Yearly Maximum Contributions
  • Some Contributions are Deductible
  • Tax-deferred Earnings
  • Distributions are Generally Taxable
  • No Income Limits
Roth IRA
  • Yearly Maximum Contributions
  • Nondeductible Contributions
  • Tax-deferred Earnings
  • Tax-free Qualified Distributions
  • Eligibility Varies Depending on Income Level

Both traditional and Roth IRA Accounts at Westbound Bank are insured by the FDIC up to $250,000 per depositor.

Why A Roth IRA?

The Roth IRA provides a major benefit over any other form of retirement savings: If you meet certain requirements. All Roth IRA earnings are tax free when you or your beneficiary withdraws them. However, you won't get a tax deduction when you contribute to the Roth IRA. Choosing a Roth IRA over a traditional IRA depends on your current situation and your future outlook:

  • How long before you withdraw money from your IRA?
  • What will your tax bracket be?
  • What earnings can you anticipate in the interim?

Effectively, a Roth IRA is larger than a traditional IRA because it holds after-tax dollars. If you can take advantage of the Roth IRA by maximizing your contributions now, you'll gain greater tax leverage on your retirement savings later.

There are two other significant advantages: since minimum distribution rules don't apply, if you're able to live on other resources after retirement and you don't draw on your Roth IRA at age 70, your Roth earnings continue to grow, tax-free.

  • You can take certain early distributions without an early-distribution penalty
  • Since minimum distribution rules don't apply, your Roth earnings continue to grow, tax-free, if you're able to live on other resources after retirement and don't draw on your Roth IRA until age 70.

Interest will be compounded and credited quarterly and at maturity. At the time of account opening, you may request to have interest credited into another Westbound Bank account or paid to you by check on a quarterly basis. If you withdraw all of your funds during the renewal period, interest stops accruing as of the maturity date.   Early CD withdrawl penalties may apply.

 

 

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