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Share Account (Savings)

There are two types of savings accounts offered by CBCTFCU: a Share (Savings) Account and Christmas Club Account.

In order to have a membership with CBCTFCU, a Share Account with a $25.00 minimum deposit is required. A Share Account allows members to earn dividends on money deposited into the account. Dividends are calculated on this account on the actual daily balance and are posted on the first day following the end of the quarter.

Please note that dividends can change quarterly and are declared by the Board of Directors before quarter end. A statement is mailed to members at the end of each quarter.

Do you have $5? Then you have enough to start a Christmas Club Account! With this account, you can deposit when you want and how much you want throughout the year. However, to make it easier—and to build your account effectively—members may want to consider having deposits made via their payroll deposit.

Please note that with the Christmas Club Account, dividends are earned daily and credited and compounded quarterly.

Share Draft Accounts (Checking)

You name it—we’ve got it! From traditional to basic to core—and much more!—our members can enjoy numerous benefits from our Share Draft (Checking) Account*.

Our Share Draft Account is like that of a checking account, except it is much more user-friendly! Along with less paper and easier balancing, members can also receive great service and better record-keeping. Not to mention, the Share Draft Account also offers overdraft protection**!

This account allows our members to earn dividends on their actual daily balance. These dividends are then posted quarterly on the first day following the end of the quarter and are available immediately.

Deposits can be made through payroll deduction, mail, direct deposit, night deposit, or at the CBCTFCU office. There is only a $4.00 service charge per month, which is automatically deducted from the account on the last day of each month.

A Cirrus ATM or Visa check card is available with this account at no additional charge. It will access the Share and/or Share Draft Account. American Express Travelers Cheques are also available with this account, with no service fee.

All you have to do is pick a Share Draft Account that best fits your needs:

Basic

If you like to keep things simple, then the Basic Share Draft Account is a great option. With this account, you will receive a Cirrus ATM or Visa check card with unlimited debit transactions, be able to receive free cashier’s checks, and will not be charged a fee for Travelers Cheques.

Members of this account must maintain a $400.00 daily balance. While there is no service charge, a $4 monthly charge will be added if the daily balance falls below minimum.

Traditional

For $4 a month, members can obtain a Traditional Share Draft Account. With no minimum balance required, members earn dividends on the actual daily balance, which are then compounded and paid quarterly. This account does come with overdraft protection, as well as a Cirrus ATM or Visa check card.

Core

The Core Share Draft Account is like the Basic Share Draft Account, with a little bit extra. While members are able to receive free cashier’s checks, no-fee Travelers Cheques, and a Visa check card with unlimited debit transactions, you can also enjoy overdraft protection.

In addition, dividends earned on actual daily balance are compounded and paid quarterly.

While there is no service charge, members must maintain a daily balance of $400.00. If the daily balance does fall below $400.00, a service charge of $4.00 per month will be added.

A+ Student

It is important to start good money habits early, which is where our A+ Student Share Account comes in! For our student members between the age of 16 and 25, this non-interest-bearing account requires no minimum balance. Members will receive a Cirrus ATM or Visa check card with unlimited debit transactions. While members who are under the age of 18 must have a parent or guardian as a joint owner of the account, there will be no monthly service charge.

Golden Apple

For those members age 55 and older, it is time to start enjoying the fruits of your labor, which begins with our Golden Apple Share Draft Account. This account includes no fee for Travelers Cheques, free cashier’s checks, no minimum balance requirement, as well as a Visa check card with up to $2,000.00 per day in transactions and/or a Cirrus ATM card with cash withdrawals up to $300.00 per day. Overdraft protection is available.

In addition, dividends are earned on actual daily balance and are compounded and paid quarterly.

All this with no service charge sounds like a win-win!

*Just remember, you need to establish a Share Account before you can be eligible to open a Share Draft Account.

**Funds are automatically transferred in $100.00 increments from your Share Account to cover any overdrafts. Please note that this can only be done six times per month at no charge. If you overdraft seven or more times within a month, you are charged $25.00 for every transfer that has to be made to cover overdrafts.

Investment Accounts

Procrastination is not always your friend, especially when it comes to your finances and your retirement fund. Start thinking now about where you want to be when you retire, so you can make preparations today in order to live the life you dream of later.

There are a couple of choices you have when it comes to investing in your future. These options include a Traditional IRA, Deductible IRA, Roth IRA, and Roth Conversion IRA.

Traditional and Deductible IRAs

When it comes to choosing a traditional or a deductible IRA, it all comes down to determining when you want to pay taxes on your investment: now or later. With a traditional IRA, members are able to save for retirement while deferring taxes on the earnings. A deductible IRA, however, allows members to deduct all or a portion of their contribution from their taxable income in the year for which the contribution is made. Taxes on this money, and on the earnings, are deferred until the money is withdrawn from the IRA.

Please note that there are penalty-free distributions when:

• The member of the IRA is 59 ½ years of age or older.
• The money is used for post-secondary education expenses.
• The funds are used for a first-time home purchase, up to $10,000.
• The money is used for qualified medical expenses.
• The IRA member becomes disabled or passes away.

Non-qualified distributions are subject to a 10% early-withdrawal penalty. Funds withdrawn for a first-time home purchase or education expenses are still taxable.

If a member chooses to have funds leave their deductible IRA, it will be subject to income tax. In addition, any rollovers, transfers, or conversions will be subject to full taxation in the year in which the rollover, transfer, or conversion was made.

Please consult a financial planner or a tax advisor to help determine whether or not it is financially beneficial and/or feasible to move the retirement funds from a traditional IRA to a Roth IRA. There may be restrictions, based on the original source of funds, on traditional IRAs that can be moved to a Roth IRA.

Roth IRA

Are you looking to build a tax-free retirement fund? Then the Roth IRA is the choice for you—and has been for many since the Taxpayer Relief Act of 1997.

However, before selecting the Roth IRA, here are some key points you need to know:

• The Roth IRA has been available since 1998.
• The earnings you accumulate with the Roth IRA are tax-free!
• There are no minimum monetary requirements or age restrictions.
• All contributions made to the Roth IRA are made with after-tax money.
• In order to make a contribution, earned income is required.

In addition, qualified distributions are not taxed. In order to be considered “qualified,” the Roth IRA must be open a minimum of five years and one of the following conditions must be met:

• The member is at least 59½ years old.
• The member is disabled.
• The money used is for a first-time home purchase, with a limit of $10,000.
• The member is deceased.

Income limitations are also higher than that of a traditional IRA. For example:

• Married couples must file a joint tax return to be eligible to make a contribution to a Roth IRA.
• Contributions may be made to a Roth IRA even if the member is covered by a Qualified Retirement Plan at work.

Note that traditional Roth IRAs can be rolled over, transferred, or converted to a Roth Conversion IRA, although certain restrictions may apply.

Roth Conversion IRA

The Roth Conversion IRA is another option when it comes to a member’s retirement fund. Members are allowed to roll over, transfer, or make a conversion from a traditional IRA to a Roth Conversion IRA if desired.

When a Roth Conversion IRA is chosen, it is considered established in the year in which the funds leave the Traditional IRA. However, a member’s adjusted gross income must not exceed $100,000—no matter if single or married filing jointly—for the year in which the conversion is made from a traditional IRA to a Roth Conversion IRA.

IRA Certificates

When selecting IRA Term Share Certificates, a minimum deposit is required. They are as follows:

12 Months — minimum deposit of $1,200.00

24 Months — minimum deposit of $2,000.00

36 Months — minimum deposit of $2,000.00

There is a penalty for withdrawing early. The amount of penalty for early withdrawal for the IRA Term Share Certificate is 90-days dividends, which is an addition to any penalties imposed by the IRS.

Term Share Certificates (CDs)

CDs are a great way to invest your money in a secure way. With terms ranging from 6 months up to 3 years you can ensure that your money is collecting a higher interest rate than in a traditional account while knowing it is secure from the ups and downs of the stock market.

There is a penalty for withdrawing early. The amount of penalty for early withdrawal for CDs is 90-days dividends.