Certificate of Deposit & IRAs

Certificate of Deposit

Short term or long term investments earn higher yields at Bank of Commerce and Trust. Flexibility and maximum earnings can be yours with our wide selection of Certificates of Deposit with maturities ranging from 30 days to 5 years. Please call for our current rates.

$1,000 minimum opening deposit required
CD automatically renews at maturity
10 day grace period at maturity for withdrawal of funds
Interest is calculated using the daily balance method
Interest begins accruing from the date of deposit
Penalty for early withdrawal may apply

Now is the time to begin experiencing the difference our people make at Bank of Commerce. Come talk with one of our experienced representatives about setting up a new account!

Individual Retirement Accounts

What is an IRA?

A traditional Individual Retirement Account (IRA) is a tax-deferred retirement fund for your personal use. Federal law allows for contributions up to $7,000 a year, which may or may not be tax deductible depending on how much you earn and your marital status. The significant feature of an IRA is that your investments grow tax-free until you take the money out at retirement.

What is a Roth IRA?

A Roth IRA is somewhat the reverse of a traditional IRA. Your retirement contributions are taxed up front, but withdrawals can be made completely tax-free once you reach age 59 1/2 and have had a Roth IRA for five years.

The Roth IRA allows investors to shelter more money for retirement. Because your Roth contribution is made with income that has already been taxed, the full $7,000 can compound substantially over the years - without incurring any future tax liability.

Whether the Roth IRA is a better option depends on what you believe your future tax rate will be. Retirees have traditionally moved into a lower tax bracket. Today, however, more people maintain high levels of income even in retirement, and it may make more sense to pay taxes on your contribution today.

What is an Education IRA?

An Education IRA lets you contribute up to $2,000 each year for anyone under the age of 18. When the beneficiary later withdraws the money to pay for qualified higher education expenses (for example, tuition, fees, room and board), the withdrawals will generally be tax-free.

But there are some conditions: if your adjusted gross income exceeds $190,000 for joint returns, or $95,000 for all others, the amount of contribution that you can make starts decreasing, and it disappears completely once your adjusted gross income exceeds $220,000 for joint or $110,000 for the rest.