An IRA stands for Individual Retirement Account. Many people mistakenly confuse an IRA to mean a financial product not insured by the NCUA or the FDIC, this is not the case. An IRA is a special designation given to many financial products to provide for tax benefits to encourage saving for your retirement. You have the choice to designate a NCUA insured Savings Account or Certificate of Deposit as an IRA, just as you have the option of having non-insured investments such as Stocks or Mutual Funds as an IRA. Harbor offers three different types of IRAs - Traditional IRA, Roth IRA, Coverdell Educational Savings Account (ESA)
A traditional IRA is a tax-deferred retirement savings account. You pay taxes on your money only when you make withdrawals in retirement. Deferring taxes means all of your dividends, interest payments and capital gains can compound each year without being hindered by taxes - allowing an IRA to grow much faster than a taxable account.
A Roth IRA is a retirement savings account that allows your money to grow tax-free. You fund a Roth with after-tax dollars, meaning you've already paid taxes on the money you put into it. In return for no up-front tax break, your money grows and grows tax free, and when you withdraw at retirement, you pay no taxes.
The following are IRA (Individual Retirement Accounts) available at Harbor: Roth, Traditional, and Coverdell Education Savings Accounts.
Saving for long term retirement or if you just need an account to rollover your retirement benefits, a IRA Savings from Harbor is an easy and convenient option!
Certificate Accounts are a great way to invest and earn higher dividends over a set term. Maximize your money with a Term Share Certificate Account. When you open a Harbor Certificate, you select the amount to invest and the length of term and your funds are secured for the term of the Certificate. As an added bonus, 6 month and 1 year Certificates feature…AcceleRate! Should rates rise, AcceleRate gives you the opportunity to increase the rate of your Certificate one time during the term.