Savings and Investments
We offer a variety of Savings and Investment Accounts designed to help you reach your financial goals.
Money Market Accounts
Share Certificate Accounts
Individual Retirement Accounts (IRAs)
Christmas/Vacation Club Accounts
Vacation Club Accounts
Share/Savings Accounts – Click here for share/savings account rates
Your Share Account is your “share” in Penn East Federal Credit Union, but it is also a good start for all your savings goals. You can open a Share Account for any savings goal. And remember, a Share Account can be used for overdraft protection and as collateral on loans.
Money Market Accounts – Click here for money market account rates
Money Market Accounts are designed for our members with consistent savings account balances who want to earn more interest than they do with our ordinary Share Savings Account. Dividends are calculated on the Average Daily Balance of the account and paid monthly. Balances earn the dividend yield within the disclosed tier. If the account balance falls below the minimum amount for that tier in a given period, the dividend rate will be calculated using the lower dividend rate. Statements for these accounts are mailed monthly. Money Market Accounts have check writing abilities and the first box of checks are free. Money Market Accounts are limited to six pre-authorized withdrawals/transfers per month. Deposits can be made at anytime and are unlimited.
Share Certificates – Click here for share certificate rates
A Share Certificate is a great way to earn higher annual percentage yields. Our Share Certificates come with a variety of terms. Plus they provide a liquid and worry-free investment. We have terms from 3 months to 60 months.
Individual Retirement Accounts (IRAs) –
An IRA is one of the best ways to plan for your future. We have a variety of options available.
A Traditional IRA is still the best IRA for long term retirement planning. Here are some facts about traditional IRAs:
You don’t pay taxes now on these retirement accounts, when your income is high. At retirement, you are able to take out your funds or roll them over into another option. Taxes paid then are considerably less, since your income will be less.
You must be under age 70 1/2 to be eligible for a traditional Nondeductible IRA.
Non-working spouses can make fully deductible contributions to an IRA, even if their spouse participates in a retirement program, as long as their joint income does not exceed $150,000. You may be able to withdraw money before age 59 1/2 without a penalty to purchase a first home (up to $10,000 maximum) or pay qualified costs of higher education.
If you know you will need your money sooner than retirement, consider the Roth IRA. Savings for a down payment on a house or other expenditure will add up to more with the higher interest paid on a Roth IRA. While you will have to pay taxes on the funds now, you will be saved those taxes when you use the money, and you do not incur any penalties for withdrawal after 5 years.
Here are some key elements of the Nondeductible Roth IRA:
Penalty free withdrawals after 5 years.
Tax-free earnings after age 59 1/2.
Contributions allowed after age 70 1/2 when employed.
No required distribution at age 70 1/2 or in your lifetime.
Tax-free if used for first home purchase (up to $10,000) or education.
Tax-free if disabled or upon death.
For more information about IRAs, speak to your financial advisor. Contact your credit union to open your IRA today and start saving for tomorrow.
Christmas Club Accounts
Holidays are a lot more fun when you know the money is ready when you are for your holiday shopping or vacation needs. If you didn’t have a Christmas Club account for this year, don’t make that same mistake again. Call or stop by to set up your Christmas Club account for next year.
You work hard all year. Your vacation is your time to relax and refuel for next year’s tough demands. Have you planned well for that earned time off? Our Vacation Club is exactly what you need to get the vacation you deserve. So, stop by the credit union and open your Vacation Club today and make next year’s vacation the break you deserve.