A Certificate of Deposit is a low-risk way to earn a higher interest rate. Generally speaking, CDs offer a fixed sum of money for a fixed period of time. Usually, the more the money and the longer the term, the higher the rate of interest. CDs are federally insured to $250,000. And they're easily converted to cash. But early withdrawal can mean substantial penalties.
Here's an intelligent way to maximize interest earnings on a short-term commitment involving deposits of $7500 or more. Hendricks County Bank offers competitive returns on "time
accounts" with maturity dates of less than six months (one to 181
These popular Certificates of Deposit pay attractive interest rates for funds on deposit for relatively short periods of time. 12-Month CDs pay a higher rate of interest than the six-month CD---and if interest is allowed to compound, income on the 12-month term will be significantly higher.
Almost anyone can own a higher interest-bearing Certificate of Deposit from Hendricks County Bank. A minimum deposit of $500 will open your new CD! And, you can choose a maturity date that best meets your ability to commit funds for a defined period of time. Maturity terms range from 18 months to 60 months. Generally speaking, the longer the term---the higher the interest rate.
These are special accounts---with special incentives---designed to encourage people to save money for their retirement years. There are two types of Individual Retirement Accounts: Traditional IRAs, and Roth IRAs. Both offer tax advantages.
The money you deposit in a Traditional IRA can lower your taxable income. It is tax-free, fully deductible. What's more, interest earned during the term of the account is tax-free also. Taxes on these earnings are paid later---after you've retired---when you make withdrawals from the account. Since retirement years figure to be periods of lower income (which means a lower tax bracket), your eventual tax on the monies should be considerably less.
Contributions are FULLY DEDUCTIBLE if your employer does not have a retirement plan.
A Roth IRA has tax advantages that are different from Traditional IRAs. Instead of tax-deferred contributions, Roth IRAs require holders to pay income tax on funds deposited. Instead, Roth IRA proceeds are tax-free at the time of withdrawal. Meanwhile, Roth allows annual contributions to continue after age 70½.
Hendricks County Bank offers the Primetime IRA to make retirement savings affordable for everyone-especially individuals and couples who want to start "planning ahead" while keeping contribution requirements at an absolute minimum.