Accounts to Focus Your Savings
There are times when you need more from your savings than what a traditional savings account can provide. Whether you're looking to save for retirement or just save more aggressively with a better interest rate, First National Bank Minnesota gives you the tools you need. We offer certificates of deposit (CDs) and individual retirement accounts (IRAs) to give you options to expand the way you save money. Contact us online or stop into our offices to speak with our banking team about your enhanced saving options.
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Certificates of Deposit
A CD is a great choice for savers looking to benefit from a better interest rate than is available in most savings account. Here's what you need to know about CDs at First National Bank Minnesota:
- Minimum deposit of $1,000
- Terms ranging from 3 months to 60 months
- Rate based on term length
- Funds are FDIC-insured up to $250,000
- Multiple options available at maturity, including withdrawal or reinvestment
- Early withdrawals subject to penalty
View our 11, 15 & 19 Month CD Specials
Retirement Accounts
From saving for your retirement to accounts that let you save for your child's future education expenses, there are choices for you at First National Bank Minnesota.
Education IRA (Coverdell ESA) | Traditional IRA | Roth IRA | |
|---|---|---|---|
Purpose | Education expenses | Retirement savings | Retirement savings |
Tax Treatment | Contributions are not tax-deductible; earnings grow tax-free if used for qualified education expenses | Contributions may be tax-deductible; earnings grow tax-deferred | Contributions are not tax-deductible; earnings grow tax-free |
Contribution Limits | $2,000 per beneficiary per year | $6,500 per year (under 50); $7,500 per year (50 and over) | $6,500 per year (under 50); $7,500 per year (50 and over) |
Income Limits | $110,000 (single); $220,000 (married) | None for contributions; tax deductibility phases out at higher incomes | $153,000 (single); $228,000 (married) |
Age Limits | Contributions until beneficiary is 18; must use funds by age 30 | Contributions until age 73 | No age limit for contributions |
Withdrawal Rules | Tax-free for qualified education expenses; 10% penalty for non-qualified withdrawals | Taxable as ordinary income; 10% penalty if withdrawn before age 59½ (exceptions apply) | Tax-free if qualified distribution rules are met; 10% penalty if withdrawn before age 59½ (exceptions apply) |
Required Minimum Distributions (RMDs) | None | Required starting at age 73 | None |