CDs & IRAs

Start Earning Today to Plan for Tomorrow

Certificates of Deposit (CDs)

At American Bank, we offer Certificates of Deposit (CDs) as a safe and predictable way to invest and grow your savings. Our CDs are designed to give you peace of mind with guaranteed returns, backed by FDIC insurance, up to the maximum allowable amount. Whether you are saving for a specific goal or looking to earn steady interest, our CDs offer competitive rates and flexible options to suit your needs.

Certificates of Deposit

Certificate of Deposit Features

  • CDs Are Safe, Predictable Investments: Your principal is protected and insured by the FDIC, making them a reliable choice for growing your savings.
  • Flexible Terms Between 1 and 60 Months: Choose a term that works best for your financial goals, whether you're saving for a short-term goal or looking for long-term growth.
  • Competitive Rates: We offer attractive rates to ensure your savings are working for you.
  • Automatically Renew at Maturity: Your CD will automatically renew at the current rate when it reaches maturity, providing you with continuous growth.
  • Great Savings Tool: Ideal for those who want a safe, predictable, and guaranteed return on their savings.

Interest Crediting: Interest is paid either at maturity or annually, depending on the term length, ensuring that your savings continue to grow over time.

Minimum Opening Deposit: $1,000.00

Early Withdrawal Penalty

If you need to withdraw your funds before the maturity date, an early withdrawal penalty may apply. The penalty for early withdrawal is as follows:

  • 7-30 days maturity: The greater of (1) all interest earned, (2) interest that could have been earned for half the term, or (3) seven days’ interest on the principal.
  • 31-365 days maturity: One month’s interest on the principal.
  • Over 1 year maturity: Three months’ interest on the principal.

Note: Early withdrawal penalties may be waived in cases of death, disability, or other exceptions determined by management.

Individual Retirement Accounts (IRAs)

An Individual Retirement Account (IRA) is a great way to save for retirement while benefiting from tax advantages. Whether you're just starting your retirement journey or looking for ways to maximize your retirement savings, American Bank offers both Traditional IRAs and Roth IRAs with competitive interest rates. IRAs offer you the opportunity to grow your retirement funds safely and securely while enjoying tax-deferred growth.

Individual Retirement Accounts

Individual Retirement Account Features

  • Minimum Opening Deposit: $25.00 (for Deposit IRAs) / $1,000.00 (for Certificated IRAs)
  • APY: Competitive rates subject to change.
  • Interest Computation: Interest is computed on the daily balance and compounded quarterly.
  • Interest Crediting: Interest is credited to your account quarterly.
  • FDIC Insurance: All deposits are FDIC-insured, ensuring the safety of your funds.

Traditional IRA vs. Roth IRA:

  • Traditional IRA: Contributions may be tax-deductible, and earnings grow tax-deferred until you begin withdrawing funds in retirement.
  • Roth IRA: Contributions are made with after-tax dollars, but qualified withdrawals are tax-free.

Early Withdrawal Penalty for IRAs

For both Traditional IRAs and Roth IRAs, if you withdraw funds before reaching the age of 59½, you may face a 10% penalty on the earnings, in addition to income tax on the amount withdrawn. However, there are some exceptions to this penalty, such as withdrawals for first-time homebuyers or to cover certain medical expenses.

Please consult with a tax professional to discuss any potential penalties, tax implications, or exceptions that may apply to your situation. A professional advisor can help you navigate the complexities of early withdrawals and ensure you’re making the best decisions for your financial future.

Benefits of Choosing American Bank for Your CDs and IRAs

At American Bank, we are committed to helping you achieve your financial goals with flexible, secure, and high-yield savings options. Whether you’re interested in a Certificate of Deposit or an Individual Retirement Account, we offer benefits that cater to your unique needs.

Why Choose American Bank for Your Mortgage?

  • FDIC Insurance: Both CDs and IRAs are FDIC-insured, ensuring your money is protected up to the maximum insured amount.
  • Flexible Terms and Rates: We offer a variety of terms and competitive rates for both CDs and IRAs, allowing you to choose the option that best fits your savings goals.
  • Local Expertise: As a local bank, we take the time to understand your financial needs and offer personalized support and guidance.
  • Easy Access: With our online banking tools, you can easily monitor your CDs and IRAs, track your interest, and manage your accounts from anywhere.

Get Started Today

It’s never too early to start saving for your future. Whether you’re interested in opening a CD for short-term savings or an IRA for long-term retirement planning, American Bank is here to help. Contact us to explore our CD specials and IRA options, and start growing your savings with American Bank.