We offer a variety of investment accounts that will give you a steady return on your savings.
Certificates of Deposit
CDs are the easiest way to save if you don't need access to your money right away. They usually pay you a higher interest rate than a traditional savings or money market account. We have CDs with maturities that range from 6 to 60 months. With a Bank of Frankewing CD, you will have the comfort of knowing that your account is fully secured by the FDIC up to the maximum allowable limit.
Individual Retirement Accounts
We also offer Traditional and Roth IRAs at either a variable or fixed rate. IRAs are a great option if you are looking to save for retirement. Review the chart below to learn about the differences between Traditional and Roth IRAs.
|You can contribute if you (or your spouse if filing jointly) have taxable compensation.||You can contribute at any age if you (or your spouse if filing jointly) have taxable compensation and your modified adjusted gross income is below certain amounts (see 2020 and 2021).|
|You can deduct your contributions if you qualify.||Your contributions aren’t deductible.|
|Your tax return filing deadline (not including extensions). For example, you can make 2020 IRA contributions until April 15, 2021
|You can withdraw money anytime.|
|You must start taking distributions by April 1 following the year in which you turn age 72 and by December 31 of later years. (70 ½ if you reach age 70 ½ before Jan. 1, 2020.)||Not required if you are the original owner.|
|Any deductible contributions and earnings you withdraw or that are distributed from your traditional IRA are taxable. Also, if you are under age 59 ½ you may have to pay an additional 10% tax for early withdrawals unless you qualify for an exception.||None if it’s a qualified distribution (or a withdrawal that is a qualified distribution). Otherwise, part of the distribution or withdrawal may be taxable. If you are under age 59 ½, you may also have to pay an additional 10% tax for early withdrawals unless you qualify for an exception.|
Simplified Employee Pensions
The Bank of Frankewing also offers a Simplified Employee Pension (SEP), which is a great option for small business owners as well as those who are self-employed.