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 $500.00 is required to open a traditional IRA or a Roth IRA account.  A minimum of $100.00 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 monthly and will not be less than 0.50%.

To obtain the annual percentage yield disclosed, you must maintain a minimum balance of $50.00 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 3:00 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. 

 

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 07/01/09