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Individual Retirement Accounts (IRAs) are special investment plans authorized by the Federal
Government to help you save for your retirement years. IRAs offer an excellent way to supplement
income from Social Security and other pension plans.
Opening an IRA is relatively simple, but every individual's situation is different. Whether you
have other IRA accounts at East Boston Savings Bank, are transferring funds from another IRA or
are just getting started with an IRA, we can help. Just call us at (800) 657-3272 or visit your
local branch. IRA accounts are available to any U.S. resident.
An Individual Retirement Account (IRA) is a special savings plan authorized
by the Federal government to help you accumulate funds for your retirement.
If you or your spouse are not active participants in an employer sponsored
pension or profit sharing plan, your IRA contributions are 100% tax
deductible. If you or your spouse are active participants, your IRA
contributions may still be fully or partially tax deductible depending
on your income level. The maximum annual IRA contribution is $5,000
for individuals (for the tax year 2008) and $10,000 for married couples
(for the tax year 2008). You must have earned income equal to or above
these limits. Penalty for early withdrawal of funds if under age 59½.
*Catch up contributions for IRA owners 50 years or older is $1,000.
A Roth IRA is a special savings plan authorized by the Federal government
to help you accumulate funds for your retirement. Contributions are
non-deductible but all withdrawals, including earnings, are tax-free
if the account has been open for five years and the account holder
is 59½ or older. The maximum annual IRA contribution is $5,000
for individuals (for the tax year 2008) and $10,000 for married couples
(for the tax year 2008). You must have earned income equal to or above
these limits. Penalty-free and tax-free withdrawals are permitted
at any time (until total distributions from all Roth IRAs exceed the
contribution amount - no distribution is subject to either taxation
or penalty).
*Catch up contributions for IRA owners 50 years or older is $1,000.
The Coverdell Education Savings Account is a type of tax-advantaged
savings account created by the Taxpayer Relief Act of 1997 specifically
for paying qualified higher education expenses. Contributions are
non-deductible, earnings are tax-deferred and distributions are tax
free if used to pay for the account beneficiary's qualified expenses
for costs of kindergarten through 12th grade, college or trade school.
Anyone may contribute toward the combined maximum of $2,000 to a child's
Coverdell Education Savings Account, provided they meet the income
restrictions.
(Please note that each customer's tax situation may be different. We suggest that you
consult your attorney, accountant, financial or tax advisor with regard to your personal
situation.)
EBSB offers several different alternatives for investing your retirement funds. Choose any
combination that works for you.
- Fixed Rate IRA Certificate of Deposit - Earn a guaranteed rate
of return. Choose from terms ranging from 6 to 60 months.
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| Minimum to open |
$500 for all other IRA CDs |
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- Variable Rate IRA Certificate of Deposit - Choose from terms ranging
from 24 to 60 months. Additional contributions can be made during
the term.
- Retirement Savings Accounts - An East Boston Savings Bank Retirement
Savings Account is an affordable investment for everyone. Open an
account with just a small amount of money and make deposits as often
as you like. Accumulated funds are available so they can be converted
to a Certificate of Deposit with a higher interest rate.
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IRA Annual Fee |
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$15 |
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| IRA (outgoing) |
$25 |
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Premature Withdrawal Fee |
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$25 |
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| Retirement CD as of May 14,
2008 |
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Minimum
to Open and Earn APY |
Interest
Rate* |
Annual
Percentage Yield (APY)* |
| 6 Month |
$500 |
1.88% |
1.90% |
| 9 Month |
$500 |
2.33% |
2.35% |
| 12-23 Month |
$500 |
2.37% |
2.40% |
| 15 Month |
$500 |
2.37% |
2.40% |
| 18 Month |
$500 |
2.47% |
2.50% |
| 19 Month *** |
$500 |
2.47% |
2.50% |
| 24-35 Month |
$500 |
2.72% |
2.75% |
| 30 Month Step-Up** |
$500 |
2.76% |
2.80% |
| 36-59 Month |
$500 |
2.76% |
2.80% |
| 60 Month Fixed |
$500 |
2.76% |
2.80% |
24-60 Month
Variable* |
$100 |
2.72% |
2.75% |
| 20 Months Rate Lock**** |
$25,000 |
2.72% |
2.75% |
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Penalty for early withdrawal.
*Rate may change after account opening. Fees may reduce earnings
and are subject to change without notice.
**Special rate and "step-up" offer vaild for a limited
time only. One Step-Up is to the then 30 month CD interest rate.
Program subject to change without notice. Substantial penalty for
early withdrawal.
***Upon maturity 19 month CD will renew to the then current 18 month
CD interest rate.
****New money from Trustee Transfers and direct rollovers to EBSB. Upon maturity CD will renew to the then current 18 month term and rate.
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If you have any questions about East Boston Savings Bank's deposit products or services, please contact our Call Center at
(800) 657-EBSB, or click "Contact Us" to e-mail Deposit Operations.
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Equal Housing Lender.