Certificates of Deposit
CDs are an important option for an investment portfolio. CDs offer flexible terms, favorable fixed rates, steady growth and are insured by the FDIC. Upon maturity, you have 10 calendar days to withdraw the funds or the CD will automatically renew at the current rate. Early withdrawal penalties and other fees may apply.
Current CD Promotion
| CD Options | Minimum Deposit to Open | Minimum Balance to Obtain APY *, 2 | Interest Rate | APY* |
|---|---|---|---|---|
| 7 Month 3 | $10,000.00 | $10,000.00 | 3.90% | 3.93% |
| 13 Month CD Promotion 3 | $10,000.00 | $10,000.00 | 3.90% | 3.94% |
Everyday CD Options
| CD Option | Minimum Deposit to Open | Minimum Balance to Obtain APY *, 2 | Interest Rate | APY* |
|---|---|---|---|---|
| 7-31 Day (Based on 31 days) | $2,500.00 | $2,500.00 | 0.65% | 0.65% |
| 91 Day | $2,500.00 | $2,500.00 | 1.25% | 1.26% |
| 182 Day | $2,500.00 | $2,500.00 | 1.75% | 1.76% |
| 12 Month | $1,000.00 | $1,000.00 | 3.75% | 3.79% |
| 18 Month | $1,000.00 | $1,000.00 | 3.40% | 3.43% |
| 24 Month | $1,000.00 | $1,000.00 | 3.45% | 3.48% |
| 30 Month | $1,000.00 | $1,000.00 | 3.50% | 3.53% |
| 36 Month | $1,000.00 | $1,000.00 | 3.55% | 3.58% |
| 48 Month | $1,000.00 | $1,000.00 | 3.60% | 3.63% |
| 60 Month | $1,000.00 | $1,000.00 | 3.65% | 3.68% |
Personal HSA Certificates of Deposit
Personal Health Savings Certificate of Deposit (CDs) offer a great option for individuals to save money for healthcare expenses, while also taking advantage of tax benefits and earning a higher interest rate than the traditional HSA checking account. Talk to one of our Relationship Bankers today to transfer funds into an HSA CD product - either from your current FMUB HSA account or from a different financial institution. Personal HSA CDs are insured by the FDIC. Upon maturity, you have 10 calendar days to withdraw the funds, or the CD will automatically renew at the current rate. Early withdrawal penalties and other fees may apply.
| CD Option | Minimum Deposit to Open | Minimum Balance to Obtain APY *, 2 | Interest Rate | APY* |
|---|---|---|---|---|
| 12 Month HSA CD | $1,000.00 | $1,000.00 | 3.75% | 3.79% |
| 18 Month HSA CD | $1,000.00 | $1,000.00 | 3.40% | 3.43% |
| 24 Month HSA CD | $1,000.00 | $1,000.00 | 3.45% | 3.48% |
| 30 Month HSA CD | $1,000.00 | $1,000.00 | 3.50% | 3.53% |
| 36 Month HSA CD | $1,000.00 | $1,000.00 | 3.55% | 3.58% |
| 48 Month HSA CD | $1,000.00 | $1,000.00 | 3.60% | 3.63% |
| 60 Month HSA CD | $1,000.00 | $1,000.00 | 3.60% | 3.68% |
Individual Retirement Accounts
Farmers & Merchants Union Bank offers a variety of IRA options to help you plan for retirement with confidence and security. Our IRA accounts offer flexibility, tax advantages and are FDIC insured. See the chart below for comparisons of a Traditional IRA and a Roth IRA.
Farmers & Merchants Union Bank also offers Education IRAs. Here are a few benefits:
- An education IRA is a tax-deferred trust account to assist families in funding educational expenses.
- Each year, up to $2,000 per child may be put into an education IRA.
- Qualified distributions for education expenses will be tax free.
- These accounts are also known as Coverdell Education Savings Accounts or ESAs.
IRA Comparison
| Feature | Traditional | Roth |
|---|---|---|
|
Eligibility Age |
You must be under age 70½ to contribute to a traditional IRA |
You can contribute to a Roth IRA at any age |
| Income |
Requires earned income and contributions can be made regardless of your income |
Requires earned income and there can be income restrictions for contributions.* |
|
Tax Advantages |
Funds may grow tax-deferred |
Funds may grow tax-free |
| Contributions |
May be Tax-Deductible* |
Not Tax-Deductible |
|
Distributions |
Distributions are taxed per your income bracket at the time of distribution. |
Distributions can be tax-free and/or penalty-free if the account has been open for at least five years |
|
Early Withdrawals |
Unless an exception applies, withdrawals before age 59 ½ may be subject to a 10% penalty |
Unless an exception applies, non-qualified withdrawals may be subject to taxation of earnings and a 10% additional tax |
|
Required Minimum Distributions (RMDs) |
RMDs starting at age 73 in 2023 |
No RMDs during lifetime of original owner |
|
Maximum Contribution* |
For 2024, $7,000 ($8,000 if you are age 50 or older) or 100% of employment compensation, whichever is less |
For 2024, $7,000 ($8,000 if you are age 50 or older) or 100% of employment compensation, whichever is less |
|
Contribution Deadline |
Generally, April 15th of the following year for any given tax year |
Generally, April 15th of the following year for any given tax year |
*Different factors can limit your maximum contributions and what can be deducted from your taxable income.
This chart is for informational purposes only and Farmers & Merchants Union Bank is not responsible for errors and omissions. The information is subject to change without notice and should not be construed as a recommendation or investment advice. Please consult your tax or legal consultant for questions concerning your personal tax or financial situation.