Secure Your Future with CDs & IRAs
Whether you're saving for a specific goal or planning retirement, F&M, a Lawrence Bank offers Certificates of Deposit (CDs) and Individual Retirement Accounts (IRAs) with competitive rates and personalized support.
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Why Choose F&M?
- Competitive Rates: Maximize your savings with attractive returns.
- Personalized Service: Expert guidance tailored to your goals.
- Flexible Options: CDs and IRAs designed for your needs.
- Community Focused: We’re invested in your financial success.
- Secure & Trusted: FDIC-insured deposits for peace of mind.
Certificates of Deposit (CDs)
A CD is a secure way to grow your savings with a guaranteed interest rate for a fixed term—ideal for specific goals.
Key Benefits
- Guaranteed Returns: Lock in a fixed interest rate for predictable earnings.
- Safety & Security: FDIC-insured up to the maximum applicable limits.
- Competitive Interest Rates: Potentially earn more than a standard savings account (please verify rates below).
- Flexible Terms: Choose from 3 to 24 months to match your timeline.
- Online Access: Conveniently view your CD account online.
How F&M CDs Work
- Minimum Investment: Open with a minimum of $1,000.
- Fixed Term, Fixed Rate: Your money earns a fixed rate for the term you choose.
- Interest Compounding: Interest is compounded quarterly and credited quarterly.
- Maturity Options: At maturity, you’ll have a grace period to withdraw, renew, or choose a different option.
- Early Withdrawal: Penalties may apply if funds are withdrawn before maturity.
Individual Retirement Accounts (IRAs)
An IRA is a powerful tool offering tax advantages to build savings for a comfortable retirement.
Key Benefits
- Tax Advantages: Enjoy tax-deferred growth (Traditional) or tax-free qualified withdrawals (Roth).
- Long-Term Growth: Designed to help your retirement savings grow over time.
- Variety of Choices: Traditional, Roth, SEP, Rollover, and IRA Plus to fit your situation.
- Flexible Contributions: Deposit into your IRA at any time (up to IRS limits).
Types of IRAs at F&M
All F&M IRAs (except IRA Plus) require a $1,000 minimum deposit. Earnings are posted quarterly. Early withdrawals may incur IRS penalties and taxes.
Traditional IRA
Contributions may be tax-deductible, allowing your money to grow tax-deferred. Taxes apply on withdrawals in retirement.
- Potential for upfront tax deduction.
- Earnings grow tax-deferred.
More About Traditional IRAs Required Distributions
Roth IRA
Contributions are made with after-tax dollars; qualified withdrawals (including earnings) are tax-free in retirement.
- Tax-free growth and withdrawals (if qualified).
- No mandatory distributions during your lifetime.
Rollover IRA
Consolidate retirement savings from a former employer’s plan into an F&M Bank IRA for more control.
- Seamlessly transfer eligible distributions.
- Direct rollover avoids potential 20% withholding.
SEP IRA
Ideal for self-employed individuals and small business owners with higher contribution limits.
- Higher annual contribution limits.
- Contributions are 100% vested immediately.
- Simpler administration than some employer plans.
IRA Plus
Start saving with just $100 and earn more as your balance grows with tiered interest rates.
- Low Opening Deposit: Start with $100.
- Tiered Interest Rates: Earn higher rates as your balance increases. Current Rates.
- Flexible Deposits: Add funds anytime.
- Quarterly statements.
IRA CDs
Combine CD security with IRA tax advantages. Ask us how to hold a CD within your IRA.
Retirement CalculatorsChoosing the Right Account: CDs vs. IRAs
The best choice depends on your goals and timeline:
- For Short-to-Medium Term Goals: A CD offers guaranteed returns over a fixed period for predictability and security.
- For Long-Term Retirement Savings: An IRA provides tax advantages to maximize your retirement nest egg (e.g., Traditional for lower tax brackets in retirement, Roth for tax-free withdrawals).
Our representatives can help you decide. Contact us for personalized guidance.
Frequently Asked Questions
How do I open a CD or IRA with F&M?
Visit any branch or contact us to speak with a representative who will guide you through the process.
What happens if I need my money before my CD matures?
Early withdrawals from a CD may be subject to a penalty. We can discuss details when you open your account.
Can I have both a 401(k) and an IRA?
Yes, many people contribute to both to maximize retirement savings. Contribution limits and deductibility rules apply.
What are the current IRA contribution limits?
IRA contribution limits are set by the IRS and can change annually. Please refer to the IRS website or consult with us for the latest information.
Ready to Take the Next Step?
Whether it’s a CD or IRA, F&M is here to help you achieve your financial goals.
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