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Many people need other investment options, both short and long-term, at higher interest rates to maximize their savings return and plan for future needs, particularly retirement. Kennebec Savings Bank offers a variety of investment accounts that offer competitive interest rates, and assist in your financial planning.
Kennebec Savings Bank offers a variety of certificates of deposit, with terms from six months to seven years, and a minimum deposit of only $1,000. This gives you the flexibility to choose the term that best meets your financial needs, whether your priorities are liquidity with a higher rate of return than offered on savings accounts (a short-term certificate of deposit with a term of one year or less is probably best for you) or savings for future needs like college tuitions or retirement (in which case, a longer-term account may suit you better).
Interest rates paid on certificates of deposit vary based on the length of the term, and are fixed for the term of your account (refer to the Bank's deposit rate sheet for currently applicable interest rates on certificates of deposit). Interest is compounded daily and paid monthly. Interest can be paid in one of three ways:
Added to the certificate;
Sent to you monthly by check; or
Automatically transferred to another account at Kennebec Savings Bank.
Once your certificate is established, no additional deposits can be made to the account except at maturity, although you can open another certificate any time you want.
There is a penalty for withdrawing your funds prior to the certificate's maturity; we recommend that you discuss your needs with our customer service representatives when you establish the account so that you can be sure to select the best term for you.
When your certificate matures, the Bank will notify you in advance. Your certificate will automatically renew for the same term (at the current interest rate for that term) at maturity unless you notify us. Otherwise, you have up to seven days after maturity to give us instructions on what you wish to do with your funds. Our customer service representatives can advise you at that time of the various investment options available to you.
Individual Retirement Accounts (IRAs) are tax-sheltered accounts to
help you save for retirement. Annual deposits into the account, up to
a maximum of $5,000 per eligible depositor ($6,000 maximum for depositors
50 years of age or more), may be tax-deductible (consult your tax advisor
to determine your eligibility). However, even if your IRA deposits are
not tax-deductible, an IRA is an excellent way to save for retirement,
since all interest earned is tax-deferred until it is withdrawn at retirement.
Kennebec Savings Bank's IRA program allows you to select a certificate of deposit with a maturity that best suits your needs. Interest rates paid on IRAs vary based on the length of the term, and are fixed for the term of your account (refer to the Bank's deposit rate sheet for currently applicable interest rates on IRAs). Interest is compounded daily and paid monthly to the account. There are no fees with a Kennebec Savings Bank IRA, making it more cost-effective than an account with many other financial service providers.
When your IRA certificate matures, the Bank will notify you in advance. Your IRA certificate will automatically renew for the same term (at the current interest rate for that term) at maturity unless you notify us. Otherwise, you have up to seven days after maturity to give us instructions on what you wish to do with your funds. Our customer service representatives can advise you at that time of the various investment options available to you.
There is a penalty for withdrawing your funds prior to the certificate's maturity, as well as IRS penalties for withdrawals before age 59 1/2. You must begin to receive distributions from your IRA no later than age 70 1/2. We suggest that you consult with your tax advisor as well as one of our customer service representatives before establishing your IRA.
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