Certificates of Deposit

• You can purchase CD’s with maturities from three months to five years.
  
  
• Interest is paid semi-annually on CD's with maturities of 6 months and over and you have the choice of whether the interest is compounded, direct deposited to your checking or savings account or sent to you by mail.
  
  
• Penalties are assessed if you have to cash CD’s early but your CD’s can be used as security for a loan in which the interest rate is usually substantially less than our normal rates. Many times it is beneficial to borrow against a CD instead of cashing one early.

Back to the top

Individual Retirement Accounts

Roth IRA

The Taxpayer Relief Act of 1997 created a new IRA for most people. If your adjusted gross income is less than $150,000 for couples or $95,000 for single taxpayers, you can contribute up to $5,000 per year into a Roth IRA. Account holders age 50 and over can contribute an additional $1,000 as a "catch-up" amount. The annual contribution you make into your Roth IRA is not tax deductible. The principal is not taxed when withdrawn and the interest that accrues is not taxed when withdrawn if you meet certain requirements. Withdrawals by a first-time homebuyer or because of a disability are also tax free under certain conditions. If you withdraw earnings before five years, those earnings are taxable.

Roth IRAs are definitely worth looking at and Community First Bank has them available. Stop in to discuss your options.

Traditional IRA’s

As always, we offer traditional IRAs which may be tax deductible depending upon your situation. You should check with your tax specialist to determine which IRA best suites your needs.

Combining the Two

You can invest in a combination of the two. However, no more than 100% of your earned income up to $5,000 ($6,000 if your over age 50) may be invested in either or a combination of each IRA type.

Back to the top

Health Savings Accounts

In addition to IRA's, Community First Bank now offers Health Savings Accounts. A Health Savings Account or HSA is a tax-exempt custodial account established for the purpose of paying or reimbursing qualified medical expenses of you, your spouse and your dependents. HSA's are opened in much the same way as an IRA. The account may be set up for automatic deposit and you may make eligible payments from the account either by check or debit card.

For more information or to set up your account please contact one of our customer service representatives.

Back to the top