IRA Disclosure

Disclosure for INDIVIDUAL RETIREMENT ACCOUNTS and COVERDELL EDUCATION SAVINGS ACCOUNTS Variable Rate Accounts

The daily balance method will be used to calculate interest on your Individual Retirement Account (IRA) or your Coverdell Education Savings Account (ESA) by applying a daily periodic rate to the full amount of principal in the account each day.

DEPOSIT INFORMATION A minimum deposit of $500 is required to open a traditional IRA or a Roth IRA account. A minimum of $100 is required to open a Coverdell Education Savings Account (formerly called the Education IRA).

Deposits of any amount may be made to the account after it is opened. However, you will be liable for any penalty incurred for excess contributions to your Traditional IRA, Roth IRA or Coverdell Education Savings Account.

INTEREST RATE The interest rate and annual percentage yield you will earn is variable and is set at the discretion of the management of the Shelby County State Bank. The rate may change quarterly and will not be less than 2.00%. To obtain the annual percentage yield disclosed, you must maintain a minimum balance of $50 in the account each day. Interest is compounded quarterly and the interest you earn is credited to your account at the end of each quarter. Interest begins to accrue no later than the business day of deposit. Deposits received after 3 p.m. are credited to the next business day. A Shelby County State Bank rate sheet is available disclosing current rates.

WITHDRAWALS Withdrawals are limited by law. Please see your tax advisor for details. You have the right to withdraw your deposit plus any interest at any time, though you may be subject to certain penalties.

A withdrawal penalty will be applied when you withdraw funds from your IRA or ESA. The amount of the withdrawal penalty will be the greater of 30 days interest or $25. The penalty will not be imposed if the payment is made in the event of your death or disability.

The penalty will also not be imposed if the payment to you is a retirement payment. A retirement payment is one which equals or is less than 30 percent of the IRA account balance at the time of the distribution and you are 59 ½ or older. A payment which you transfer or rollover cannot be a retirement payment. This penalty will be deducted from your IRA at the time of the withdrawal.

We reserve the right to require seven days notice before any withdrawal can be made from an interest-bearing account.

 

PLEASE ASK A BANK REPRESENTATIVE FOR CURRENT RATES

Rev 01-01-05