CDs/IRAs/HSAs

Certificates of Deposit (CDs)

American State Bank offers certificates of deposit with attractive interest rates for the following terms: 3 months, 6 months, 12 months, 18 months, 24 months, 36 months, 4 years, and 5 years. Bonus interest rate certificates of deposit are offered to customers having Advantage or Golden Advantage Checking Accounts, or deposits totaling $50,000 or more.

"Penalty Free" certificates are offered with an attractive interest rate, and the flexibility to add to the certificate or withdraw all or part of the deposit seven days after the purchase date.

For current rates, please stop in or give your local branch a call.

Individual Retirement Accounts (IRAs)

Traditional IRAs

The annual contribution limit is $5,000.  This contribution limit can be adjusted annually for inflation in $500 increments.  The limit can be split between a traditional IRA and a Roth IRA but the combined limit is $5,000.  Contributions are fully tax deductible if you are not an active participant in an employer retirement plan.  Deductibility may be limited to the accompanying chart for details Investments grow on a tax-deferred basis.  Distributions must begin at age 70 ½. Earnings are taxed only upon withdrawal.  See your tax accountant for more information.

Roth IRAs

As long as you have earned income, you can establish and contribute to Roth IRA even after age 70 ½. While contributions are not tax deductible, contributions and earnings can be withdrawn tax-free and unlike traditional IRAs, you are not required to begin taking required minimum distributions after reaching age 70 ½ .  By converting your traditional IRA to a Roth IRA, you can enjoy tax-free withdrawals.  However, the amount you convert is subject to income tax now.

Health Savings Accounts (HSAs)

Health Savings Accounts (HSAs) are tax-favored savings accounts for individuals and families covered by high deductible health insurance plans. They allow for tax-deductible contributions and tax-free withdrawals for qualified medical expenses. At American State Bank, customers with an HSA can receive a debit card to conveniently pay qualified medical expenses.

HSAs can be a valuable asset to both eligible individuals and employers. To discuss HSA benefits and eligibility, stop by American State Bank.

Traditional and Roth IRAs At-a-Glance

* To be adjusted annually for inflation in $500 increments and is limited by earned income.