Certificates and IRAs

If you have funds, perhaps for retirement, that you absolutely, positively cannot put at risk; or if they are earning a lower rate at another financial institution, a MEFCU share certificate or IRA is a reliable, safe way for your money to grow.

 

Share Certificates

Lock in competitive rates for your funds with a choice of terms from 3 months to 36 months*. Unlike many other investment options, MEFCU Share Certificates are federally insured.

Open your share certificate with as little as a $500 initial deposit requirement ($25,000 minimum for three-month term). Certificate accounts are federally insured providing additional security and protection.

To maximize your yields and liquidity, consider opening certificates of different terms. Also consider Concierge Banking to get even higher yields. Certificate balances count toward your Concierge Banking relationship.

*Early withdrawal penalties apply and may reduce earnings.

Share Certificates

Effective Date: 07/01/2017

Regular share certificate rates

term (in months)
Prospective Dividend Rate
Prospective Annual Percentage Yield(APY)
Minimum Deposit to Open
3
 
0.15%
0.15%
$25,000
6
0.20%
0.20%
$500
12
0.30%
0.30%
$500
24
0.45%
0.45%
$500
36
0.50%
0.50%
$500

The rate in affect when account is opened is fixed for the term of the share certificate.  A penalty will be imposed for early withdrawal.  The APY is accurate as of the effective date.

Facts about IRAs

Traditional IRAs

IRAs can offer income tax advantages to individuals with earned income. IRA contributions are limited and in some cases are tax-deductible and dividend growth may be tax-free. Contribute up to $5,000 per tax year or 100% of earned income, whichever is less or up to $6,000 per year for couples filing jointly.

Lump sum contributions ("rollovers") from other types of accounts may be made under account rules, and annual "catch-up" provisions allow additional contributions up to $1,000 for those aged 50 and over.
Contributions are permitted until age 70 1/2.

Withdrawals on some IRAs are restricted by age, and are later required; withdrawals may be taxable.
Consult your tax advisor about your specific situation.

Roth IRAs

With a Roth IRA, you invest with after-tax dollars. If your account remains open for at least five years, the dividends you earn are tax free (assuming you withdraw them after age 59 1/2 or under other limited circumstances).
  

Coverdell Education Savings Account (ESA)

Open a Coverdell Education Savings Account to contribute to a child's education savings; accounts are available only for children under 18. You can open your ESA as an IRA Share Savings Account and contribute up to $2,000 per year.  Withdrawals are tax and penalty free when used for qualified higher education expenses.
 

IRAs are federally insured separately from your other accounts, up to $250,000, but Traditional IRA and Roth IRA accounts are combined together and insured in the aggregate.  

For an IRA application, please email us at member.services@mefcudirect.com, or call 1-800-821-7280.


   

IRA Rates

Effective Date: 07/01/2017

Regular ira/coverdell esa

Daily Balance to Earn APY
Prospective Dividend Rate
Prospective Annual Percentage Yield(APY)
Minimum Deposit to Open
Under

$
10,000

 
1.25%
1.26%
N/A
$10,000

or more
1.50%
1.51%
N/A

After account is opened, rates may change at any time and without notice at the discretion of the Credit Union Board of Directors.
 

Effective Date: 07/01/2017

Regular IRA/coverdell esa share certificates

term (in months)
Prospective Dividend Rate
Prospective Annual Percentage Yield(APY)
Minimum Deposit to Open
12
 
0.30%
0.30%
$500
24
0.45%
0.45%
$500
36
0.50%
0.50%
$500

A penalty will be imposed for early withdrawal.
The rate in effect when account is opened is fixed for the term of the share certificate.

 

 
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