HOLIDAY CLUB
Just like a regular share savings account, a Bell Holiday Club account earns a very competitive dividend rate, compounded daily from the date of deposit on balances of $5 or more and dividends are paid monthly. For a Holiday Club account, all but $1.00 will be paid to your regular share account on or after November 1st by automatic transfer. There is a penalty of 5% with a maximum of $15.00 for each withdrawn amount, prior to November 1st.
YOU NAME IT SAVINGS
The You Name It Share Savings account is an account suffix that can be added to your existing account. This account is designed to help you save for that special trip, event or item you want to purchase. You can name your account for whatever you are saving for. This account pays the same rate as the regular share account and dividends are paid monthly. You decide on how much to deposit and when to make withdrawals. The minimum balance required to open a You Name It Share Savings Account is $5. Be sure to find out how to "get out of line" with our PAYROLL DEDUCTION service! There will be no ATM access on this savings account since there is a specific savings purpose.
INDIVIDUAL RETIREMENT ACCOUNTS
An Individual Retirement Account (IRA) is a special tax deferred high dividend savings program through which a member may save for retirement. Qualifying members receive the benefit of deducting their IRA contributions from their taxable income and deferring tax payments on the dividends earned on their deposits until the IRA funds are withdrawn (check with your tax advisor to determine if you are eligible for this special deduction).
There are three types of IRAs available, the Roth IRA, the Coverdell Education Savings IRA and the Traditional IRA. Each has unique characteristics and specific eligibility requirements. While you may purchase all of the Individual Retirement Accounts (IRAs) mentioned at Bell Federal Credit Union, you should talk to your tax consultant or sit down with paper and pencil to choose the right IRA for you.
The following is some general information. Existing Traditional IRAs still have the maximum contribution limit in a single year, but new thresholds for deductibility exist. There is also a new relaxed participation rule for spouses and an easing of penalties charged for early withdrawals if the money withdrawn is used for specific purposes. The new Roth IRA contribution, while not deductible, is an ideal investment for many as qualified distribution are tax-free. The annual investment limits are the same as the Traditional IRA. The Coverdell Education Savings IRA has attractive tax-free withdrawal options and is a wonderful way to save for education expenses. Bell Federal Credit is not a tax consultant, nor will we act in that capacity, but we do offer some of the best rates around, so after you have made your decision, let us set up an IRA account for you.
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