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Share (Savings) Account
A regular Share Account is required for membership in the Credit Union with a $25.00 minimum deposit. With this account you earn dividends on money deposited into the account. Dividends are calculated on this account on the actual daily balance and are posted on the first day following the end of the quarter.
Dividends can change quarterly and are declared by the Board of Directors before the quarter end. A quarterly statement is mailed at the end of each quarter.
Share Draft (Checking) Account
A Share Draft Account is a step up from checking accounts. There is less paper work, easier balancing, better record keeping, and great service.
If you have a Share (savings) Account then you are eligible for a Share Draft Account. The Share Draft Account earns dividends on the actual daily balance. These dividends are posted quarterly on the first day following the end of the quarter and are available immediately.
Deposits can be made through payroll deduction, mail, direct deposit, night deposit, or at our office. The service charge is only $4.00 per month and is deducted the last day of each month.
A Cirrus ATM or VISA Check card is available with this account at no additional charge. It will access the Share and or Share Draft Account. American Express Traveler Cheques are available with this account with no service fee.
The Share Draft Account has overdraft protection. Funds will be automatically transferred in $100.00 increments from your Share Account to cover any overdrafts. This can be done six times per month at no charge. Each time thereafter the six, you will be charged $3.00 for every transfer that has to be made to cover overdrafts.
We offer many different Share Draft accounts, one sure to fit your needs:
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Golden Apple Share Draft - for our members age 55 and over. Features include, free Golden Apple Share Drafts, no fee for Traveler Cheques, free cashier checks, no minimum balance requirement, VISA Check Card with up to $2,000.00 per day transactions and/or ATM Card with cash withdrawals up to $300.00 per day. Overdraft protection is available. All this with NO SERVICE CHARGE. Dividends are earned on actual daily balance and compounded and paid quarterly.
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Traditional Share Draft no minimum balance required, dividends earned on the actual daily balance and compounded and paid quarterly, overdraft protection, VISA Check Card or ATM, for only $4:00 per month.
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Core Share Draft Account if you have Direct Deposit, this account is for you. Free cashier checks, no fee for Travelers Cheques, VISA Check Card with unlimited debit transactions. Dividends earned on actual daily balance, compounded and paid quarterly. Maintain a daily balance of just $400.00 and there is NO Service Charge. (If the daily balance falls below $400.00 service charge is $4.00 per month.) Overdraft protection is available on this account.
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Basic Share Draft Account our no frills share draft account offers free cashiers checks, no fee for Travelers Cheques, a Cirrus ATM Card OR visa Check Card with unlimited debit transactions. Maintain a $400.00 daily balance and there is no service charge ($4 per month if the daily balance falls below minimum.)
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aPlus Share Draft Account for our student members ages 16-25, this non interest bearing account requires no minimum balance, ATM or Visa Check Card with unlimited debit transactions is available. NO monthly service charge. (Members under 18 must have parent or guardian as joint owner.)
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Christmas Club Accounts
To open a Christmas Club Account, all you need is $5.00! You can deposit ANY amount at ANY time throughout the year. The only way to make it even easier is to have your deposits deducted from your payroll. Its simple and youll be glad you opened one come October when you receive that Christmas Club check in the mail!
Dividends are earned daily and credited and compounded quarterly.
Individual Retirement Accounts (IRA)
Traditional IRA
The Traditional IRA offers an opportunity to save for retirement while deferring taxes on the earnings. For qualified individuals, this deductible IRA allows you to deduct all or a portion of your contribution from your taxable income in the year for which the contribution is made. Taxes on this money and on the earnings are deferred until the money is withdrawn from the IRA.
Penalty-free distributions are allowed when:
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IRA owner is age 59½ or older
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Money is used for qualified post-secondary education expenses
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Money is used for first-time home purchase up to $10,000
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Money is used for qualified medical expenses
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IRA owner becomes disabled
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IRA owner dies
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Non-qualified distributions are subject to a 10% early-withdrawal penalty.
Funds withdrawn for a first-time home purchase or education expenses are still taxable.
Roth IRA
The Roth IRA is a product of the Taxpayer Relief Act of 1997. It offers you the opportunity to build a tax-free retirement fund. Following are some of the key points of the Roth IRA.
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Available for tax-year 1998 and beyond
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Contributions made with after-tax money
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Earnings accumulate TAX FREE
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Minimum distributions not required
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No age limit on contributions
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Earned income is a requirement for making contributions
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Qualified distributions NOT TAXED
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To be a qualified distribution:
Roth IRA must be open a minimum of 5 years
AND one of the following conditions must be met:
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Age 59½
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Disabled
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Money used for first-time home purchase limit $10,000
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Deceased
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Income limitations are higher than on the Traditional IRA:
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Married couples must file a joint tax return to be eligible to make a contribution to a Roth IRA.
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Contributions may be made to a Roth IRA even if you are covered by a
Qualified Retirement Plan at work.
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Traditional IRAs can be rolled over, transferred, or converted to a Roth Conversion IRA.
Certain restrictions may apply.
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Roth Conversion IRA
The Roth Conversion IRA is an IRA established to accept rollovers, transfers, or conversions from a Traditional IRA.
The Roth Conversion IRA is established for the year in which the funds leave the Traditional IRA.
Your Adjusted Gross Income must not exceed $100,000 (whether single or married filing jointly) for the year in which you make the conversion from a Traditional IRA to a Roth Conversion IRA.
Funds leaving a deductible IRA will be subject to income tax. Any rollovers, transfers, or conversions occurring in 1999 or beyond will be subject to
full taxation in the year in which the rollover, transfer, or conversion was made.
We suggest you consult a financial planner or a tax advisor to determine whether or not it is financially beneficial &/or feasible for you to move your retirement money from a Traditional IRA to a Roth IRA. There may be restrictions, based on the original source of funds, on Traditional IRAs that can be moved to a Roth IRA.
IRA Term Share Certificates
IRA Term Share Certificates are also available. The following terms with minimum deposit requirements are:
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12 Months minimum deposit of $1,200.00
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24 Months minimum deposit of $2,000.00
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36 Months minimum deposit of $2,000.00
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The amount of penalty for early withdrawal for the IRA term share certificate is 90 days dividends (this is in addition to any penalties imposed by the IRS).
©Copyright 2008
Cleveland/Bradley County Teachers Federal Credit Union.
All Rights Reserved.
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Your savings federally insured to at least $100,000 and backed by the full faith and credit of the United States Government. National Credit Union Administration, a U.S. Government Agency.
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