A Certificate of Deposit (CD) is a savings account that offers a fixed interest rate for a specific period of time. CDs are ideal for individuals who want predictable growth without the market risk associated with stocks or mutual funds.

At Peoples Trust Company, CD terms range from one month to five years, allowing you to choose a maturity schedule that aligns with your financial goals.

Benefits of a Certificate of Deposit

• Fixed interest rate for the entire CD term
• FDIC-insured up to applicable limits
• Predictable earnings without market volatility
• Flexible terms from 1 month to 5 years
• Minimum opening deposit of $500
• Automatic renewal at maturity
• Includes Online Banking access
• Ideal for short-term and long-term savings goals

Who Should Consider a CD?

A CD may be a good choice if you:

• Want guaranteed returns on your savings
• Are saving for a future purchase or expense
• Prefer low-risk savings strategies
• Want to diversify your savings portfolio
• Need a secure place for retirement funds or inherited assets

Important Information

CDs automatically renew at maturity. A 10-day grace period allows you to withdraw funds, add funds (if applicable), or select a new term without penalty. Early withdrawal penalties may apply.

Individual Retirement Accounts (IRAs)

An Individual Retirement Account (IRA) can help you save for retirement while potentially providing valuable tax advantages. Peoples Trust Company offers Traditional and Roth IRA options to help individuals build retirement savings based on their unique financial circumstances.

Why Open an IRA?

IRAs can help you:

• Save specifically for retirement
• Benefit from potential tax advantages
• Grow retirement funds over time
• Consolidate retirement savings
• Create a long-term retirement income strategy

For 2025, the annual IRA contribution limit is $7,000 for individuals under age 50, and $8,000 for those 50 and older (catch-up contribution included).

Please consult a qualified tax advisor regarding contribution limits, eligibility requirements, and tax treatment.

A Traditional IRA allows eligible individuals to make contributions that may be tax deductible. Earnings grow tax deferred until funds are withdrawn during retirement.

Benefits of a Traditional IRA

• Potential tax-deductible contributions
• Tax-deferred growth
• Flexible contribution options
• FDIC-insured deposit choices available
• Suitable for individuals seeking current-year tax benefits

A Traditional IRA May Be Right For You If:

• You want potential tax deductions today
• You expect to be in a lower tax bracket during retirement
• You are focused on long-term retirement planning
• You want stable savings options with predictable growth

A Roth IRA allows eligible individuals to contribute after-tax dollars today in exchange for potential tax-free qualified withdrawals during retirement.

Benefits of a Roth IRA

• Tax-free qualified distributions
• Contributions made with after-tax dollars
• No required minimum distributions during the original owner's lifetime (subject to current tax laws)
• Potential long-term tax advantages
• Flexible retirement planning strategy

A Roth IRA May Be Right For You If:

• You expect your tax rate to be higher in retirement
• Your 2025 modified adjusted gross income is below $150,000 (single filers) or $236,000 (married filing jointly) -- Roth eligibility phases out above these thresholds
• You want tax-free retirement income
• You are early in your career and have a long investment horizon
• You want greater tax diversification in retirement

A Coverdell Education Savings Account helps families save for qualified education expenses. Parents, grandparents, and guardians can make contributions on behalf of a child to help fund future educational costs.

Benefits of a Coverdell ESA

• Tax-free qualified withdrawals for eligible education expenses
• Savings can be used for elementary, secondary, and higher education costs
• Flexible educational planning tool
• Helps families prepare for future tuition and educational expenses

Annual contributions are limited to $2,000 per beneficiary. Contributions phase out for higher-income individuals -- consult a tax advisor for current thresholds.

Please consult your tax advisor regarding eligibility requirements, contribution limits, and qualified expenses.

Frequently Asked Questions

What is the difference between a CD and an IRA?

A CD is a savings product that earns a fixed rate for a set term. An IRA is a retirement account that may offer tax advantages. An IRA can sometimes hold CDs specifically designated as IRA CDs.

Are CDs FDIC insured?

Yes. Deposits at Peoples Trust Company are FDIC insured up to applicable limits.

What happens when my CD matures?

Your CD will automatically renew unless changes are made during the 10-day grace period following maturity.

Which IRA is better, Traditional or Roth?

The best IRA depends on your income, tax situation, and retirement goals. Traditional IRAs may provide tax benefits today, while Roth IRAs may provide tax advantages in retirement.

How much money do I need to open a CD?

Peoples Trust Company CDs require a minimum opening deposit of $500.

Can I open an IRA online?

Yes. Eligible customers can begin the account opening process online.