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Home / Personal / IRAs / Traditional Deposit IRA

Traditional Deposit IRA

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This certificate of deposit IRA provides safety, security and immediate tax benefits because contributions may be tax-deductible and earnings tax-deferred*. Withdrawals are taxed as ordinary income.

Open a Traditional IRA with First State Bank, your hometown bank in Macomb County, Michigan. Traditional IRAs invested in a bank certificates of deposit can be an excellent tax-advantaged way to save for retirement.

  • Contributions may be tax deductible (age and income govern eligibility)
  • Pay no taxes on earnings until money is withdrawn
  • Reap the full benefits of compounding, compared to after-tax accounts
  • Safe, solid deposit account that can preserve and grow funds at a guaranteed rate of return
  • Provide diversity to more volatile retirement funds that you've invested in stocks or bonds
  • Choose between fixed rate options and a variable rate option, which allows for ongoing contributions
  • FDIC protection

Contribution Limits

Year Age 49 and below Age 50 and over
2013 $5,500 $6,500
2014 $5,500 $6,500

Current Rates
Variable Rate Certificate of Deposit

  Interest Rate APY~
Variable Rate CD .25% .25%

Minimum to open:$100

Fixed Rate Certificate of Deposits

  $1,000 $10,000 $25,000 $50,000 $75,000
Rate APY~ Rate APY~ Rate APY~ Rate APY~ Rate APY~
30 Day .05%  .05%  .05%  .05%  .05%  .05%  .05%  .05%  .05%  .05% 
91 Day .10%  .10%  .10%  .10%  .10%  .10%  .10%  .10%  .20%  .20% 
6 Mth .15%  .15%  .15%  .15%  .15%  .15%  .20%  .20%  .40%  .40% 
12 Mth .20%  .20%  .20%  .20%  .30%  .30%  .30% .30%  .40%  .40% 
18 Mth .25%  .25%  .25%  .25%   .30% .30%  .30%  .30%  .50%  .50% 
24 Mth .35%  .35%  .35%  .35%  .40%  .40%  .50%  .50%  .50%  .50% 
30 Mth .35%  .35%  .35%  .35%  .40% 

 .40%

.50%  .50%  .50%  .50% 
36 Mth .40%  .40%  .40%  .40%  .70%  .70%  .70%  .70%   .80% .80% 
48 Mth .60%  .60%  .60%  .60%  .90%  .90%  .90%  .90%  1.00%  1.00% 
60 Mth .80%  .80%  .80%  .80%  1.10%  1.10%  1.10%  1.10%  1.10%  1.10% 

Minimum to open: $100
IRA transfer fee: $30

Call or stop by one of our branches and speak to one of our Branch Officers to find out which IRA is right for you.

Withdrawals made before the maturity date may result in a substantial penalty.

* You may be eligible for a fully deductible IRA contribution if neither you nor your spouse participates in an employer sponsored retirement plan. If one of you does, your eligibility may be limited by your income. Refer to IRS regulations governing this account for limitations.
~ This account earns interest at a fixed or variable rate depending upon the product. Annual Percentage Yield is accurate as of September 1, 2014. These rates may change at any time without prior notice. Fees could reduce earnings on the account.

Equal Housing LenderMember FDIC