CDs & IRAs
CDs & IRAs
Exchange State Bank offers opportunities for investment. Our two most popular investment vehicles are Certificates of Deposit (CDs) and Individual Retirement Accounts (IRAs). While a CD can offer great short term savings, an IRA is intended to be an investment for retirement. To best assess which investment tool would help you meet your financial goals, contact Exchange State Bank.
SPECIAL "Cotta Account" Certificate
We are currently offering a 4 year "Cotta Account" Certificate for 1.51% Annual Percentage Yield (based on Interest Rate of 1.50%). This offer is for new money deposits at ESB and has a minimum deposit of $5000 to open the account. Standard early withdrawal penalties apply. Please see one of our tellers for more details!
Certificates of Deposit (CDs)
Certificates of Deposit allow you to safely grow portions of your available funds at a higher rate of interest within a specific time period. This low-risk investment account entails committing to depositing a fixed amount of money for a fixed amount of time. When the fixed amount of time is over, you redeem your Certificate of Deposit containing the money you put into it in addition to the accrued interest, or you can allow the certificate to automatically renew at the then current rates for the same specified term. At Exchange State Bank, we offer a variety of CD terms at competitive interest rates.
View our FIXED RATE CERTIFICATES OF DEPOSIT features. To learn more about our CDs, call Exchange State Bank today!
Individual Retirement Accounts (IRAs)
Individual Retirement Accounts most commonly fall into two categories; the traditional IRA and the Roth IRA, which both grow tax free while funding is in the account. The main difference between the two is when you pay taxes on the IRA. With traditional IRAs, the funds are put into the account tax deferred, so you pay taxes when the money is taken out later. With the Roth IRA, you have already paid taxes on the funds you contribute, so there are no taxes to pay when you want a distribution.
View Exchange State Bank IRA features. Contact Exchange State Bank to help you determine if you are eligible to contribute to an IRA and which type of account would benefit you most.
Guidelines for Exchange State Bank CDs and IRAs
Annual percentage yields (APY) and interest rates may change without notice. You can learn more about our current rates by calling us at 815-493-2631. Exchange State Bank calculates interest using the daily balance method which starts on the business day that the account was opened.
There is a ten-calendar-day grace period after the maturity date to make any changes or to redeem the certificate. If you elect to redeem the certificate after the maturity date, interest will not be paid. Adding principal to the certificate after the maturity date and within the grace period will constitute redemption and cause the certificate to be issued using the current date. Compounded interest becomes principal and cannot be withdrawn without penalty.
For fixed rate certificates, the interest rate will be in effect until the maturity date. You may not make additional deposits into your account until maturity on fixed rate certificate options. The only available option that allows additional money to be added to a certificate is the IRA Variable Rate Certificate which offers a 1 year (365 day) term. The APY on all certificates except the 5, 6 and 7-year terms assume interest remains on deposit until maturity. A withdrawal will reduce earnings.
Early Withdrawal Penalties
You cannot withdraw any principal from this account before the maturity date shown on this form without our consent, and we will charge a penalty for early withdrawal. We can only consent to an early withdrawal at the time you request it.
For time deposits with an original scheduled maturity of less than six months, the penalty is 30 days interest on the amount withdrawn.
For time deposits with an original scheduled maturity of six months to one year, but not including one year, the penalty is 91 days interest on the amount withdrawn.
For time deposits with an original scheduled maturity of one year to five years, but not including five years, the penalty is 182 days interest on the amount withdrawn.
For time deposits with an original scheduled maturity of five years or more, no withdrawal is permitted.
We will use the nominal (simple interest) rate in effect to calculate the amount of the penalty. We will charge the penalty first against the interest remaining in the account at the time of the withdrawal, and any excess will be deducted from the amount you withdraw.
If you withdraw some of your funds before maturity and the balance remains more than the required balance to earn interest, the interest rate and the annual percentage yield for the remaining funds will remain the same. For any time the deposit account which requires a minimum initial deposit or a minimum balance, we reserve the right to treat any withdrawal which would reduce the balance remaining in the account below such minimum as a withdrawal of the account balance, and calculate the amount of the penalty accordingly. This right is in addition to any other conditions stated in the deposit agreement.
WE MUST CONSENT TO A REQUEST FOR EARLY WITHDRAWAL WITHOUT PENALTY IF ANY ACCOUNT OWNER DIES OR BECOMES INCOMPETENT.
WE MUST CONSENT TO A WITHDRAWAL REQUEST IF THIS IS AN IRA OR KEOGH ACCOUNT AND THE REQUEST IS MADE WITHIN SEVEN DAYS OF ESTABLISHING THE ACCOUNT. THE PENALTY IN SUCH CASE WILL BE ALL INTEREST EARNED ON THE AMOUNT WITHDRAWN.
WE ARE PERMITTED TO WAIVE THE PENALTY IF THIS IS AN IRA OR KEOGH ACCOUNT AND YOU ARE AT LEAST 59 1/2 YEARS OF AGE OR DISABLED AT THE TIME OF THE REQUEST.