Accounts to Focus Your Savings
It doesn’t matter if you're looking to save more aggressively, or you want to improve your retirement savings for when your working days are done. No matter your reason for saving, you need accounts that allow you to execute your savings strategy. Ergo Bank offers certificates of deposit (CDs) and individual retirement accounts (IRAs) to give you the tools you need to save the way you want. If you want to open a CD or IRA, please contact our team.
Certificates of Deposit at Ergo Bank
An Ergo Bank CD gives you flexibility to go with competitive terms and rates. Here’s what you need to know about our CDs:
- Terms ranging from 31 days to 60 months
- Minimum deposit amounts range from $500 to $100,000
- Rates determined based on term length
- Rate is fixed throughout certificate’s term
- Withdraw or reinvest your funds at full maturity
- Early withdrawals subject to penalty
Retirement Accounts at Ergo Bank
Feature/Benefit | Traditional IRA | Roth IRA | Coverdell IRA |
|---|---|---|---|
Tax Treatment | Contributions may be tax-deductible; earnings grow tax-deferred | Contributions are made with after-tax dollars; earnings grow tax-free | Contributions are not tax-deductible; earnings grow tax-free |
Eligibility | No income limits for contributions | Income limits apply for contributions | Income limits apply for contributions |
Withdrawals | Taxed as ordinary income; penalties may apply if withdrawn before age 59½ | Contributions can be withdrawn anytime tax-free; earnings tax-free after age 59½ | Tax-free if used for qualified education expenses |
Required Minimum Distributions (RMDs) | Required starting at age 73 | No RMDs for the original owner | No RMDs, but funds must be used by age 30 |
Contribution Limits | $7,000 per year (under 50); $8,000 (50 and older) for 2025 | $7,000 per year (under 50); $8,000 (50 and older) for 2025 Subject to MAGI limitations. | $2,000 per beneficiary per year |
Purpose | Retirement savings | Retirement savings with tax-free withdrawals | Education savings for K-12 and higher education expenses |
Penalty-Free Withdrawals | Allowed for certain expenses (e.g., first home, education, medical) | Contributions anytime; earnings for qualified expenses (e.g., first home, education) | Qualified education expenses (e.g., tuition, books, supplies) |
*Consult Your Tax Advisor