IRA
from First Command Bank

IRA-CDs offer the security of a CD and the tax benefits of an IRA. With a First Command Traditional IRA-CD, customers' contributions may be tax-deductible in the tax year, and earnings are tax-deferred until they're withdrawn. To start a traditional IRA one must be under the age of 70½ and have earned income. IRA-CDs are backed by federal deposit insurance up to $250,000. CD's range from 30 days to 3 yrs. The CD has tiered interest rates, automatic renews at maturity, and start making IRS penalty-free withdrawals at age 59½. For IRA-CDs with maturities of less than 90 days, and for deposits of less than $1,000, a $25 fee will apply. Interest paid monthly on balances of $10,000 or more, quarterly on balances below $10,000. Any earnings and deductible contributions are taxed as ordinary income at withdrawal. Withdrawals made prior to age 59½ may be subject to a tax penalty.