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Certificates of Deposit | Individual Retirement Account | CDARS | FDIC Coverage

Certificates of Deposit

United offers certificates of deposit that earn market rates of interest and are available with a variety of maturities.

Interest earned may be paid monthly, quarterly, semi-annually, annually or at maturity. The interest may be automatically credited to a United account or mailed to you in the form of a check.

CDs may be reinvested within 10 days of maturity without loss of interest, or if you prefer, you may designate your CD to be automatically reinvested upon maturity at the prevailing rate. You are permitted a 10 day period after maturity in which changes to the terms of the CD may be made.

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Individual Retirement Account

Now is the best time to invest in your future. By planning for tomorrow today, you help ensure a secure retirement. Because your IRA earnings may be tax sheltered, the sooner you contribute, the faster your investment dollars grow.

United offers Traditional, Roth and Education IRAs that earn market rates of interest in any certificate of deposit. There is also a special IRA Float Savings Plan with a variable rate of interest that changes monthly.

The traditional IRA is an account that allows you to defer taxes on the earnings on your contributions until they are withdrawn. Also, certain contributions are tax deductible in the tax year for which they are made. When you reach the age of 70 , you must begin to take minimum required distributions or risk additional penalty taxes.

The Roth IRA allows only nondeductible contributions and features tax-free withdrawals for certain distribution reasons after a five-year holding period. You are not required to take distributions from your Roth IRA. Since Roth IRA contributions are nondeductible and taxed in the year they are earned, if you expect to be in a higher tax bracket when you retire, you may benefit more from a Roth IRA than from a traditional IRA.

Opening both a traditional and a Roth IRA would let you develop your own blend of tax-deductible contributions to your traditional IRA and nondeductible contributions to your Roth IRA. You can decide which is a greater priority for you: minimizing your taxes now through a deduction or minimizing your taxes in the future with tax-free earnings.

What are the new ROTH IRA conversion rules?

Prior to 2010 only taxpayers with an adjusted gross income of less than $100,000 were eligible to convert a traditional IRA to a ROTH IRA. The good news is that beginning in 2010, the $100,000 AGI limit is eliminated. Upon conversion to a ROTH IRA, pretax assets will be included in the taxpayer’s ordinary income in the year the conversion takes place. However, there is more good news. In 2010, the tax liability can be spread equally over 2011 and 2012.

There are a number of considerations that must be addressed in making the decision to convert. Those preferring to take tax free distributions in an uncertain future tax environment, or who have retirement asset losses who could take advantage of the lower tax liability, or who intend to pass retirement assets on to their beneficiaries provide just a few examples of individuals who may want to convert. Consulting with your tax advisor or wealth management professional is recommended to assist in making this decision.

The Coverdell Education Savings Account is a nondeductible account that features tax-free withdrawals for a very specific purpose - a child's education expenses. These accounts were formerly known as Education IRAs, and at first glance, a CESA may look similar to traditional or Roth IRAs. Higher education distributions are also permitted from these accounts, but while qualified higher education distributions from a traditional or Roth IRA are only penalty tax-free, the same distributions from a CESA are penalty free and federal income tax-free. A qualified higher education expense generally can be for tuition, fees, books, supplies, and equipment required for the enrollment or attendance at an eligible higher education institution. Basically, an eligible higher education institution is an area vocational school or a college or university. Room and board are also eligible expenses if the student is enrolled at least half time. Consult your tax or legal professional for further information regarding state or local income taxes.

There may be a penalty for early withdrawal. The penalty is assessed only on the amount withdrawn. Under United's Individual Retirement Account your deposits are insured up to a maximum allowed by the FDIC.

This information is intended to provide general information concerning IRAs. It is not intended to provide legal advice or to be a detailed explanation of the regulations covering these accounts, or how they may apply to your individual circumstances.

United also offers Self-Directed and Managed IRAs through our Trust Division. These IRAs provide a broader range of investment alternatives for the investor such as stocks, bonds, annuities, and mututal funds. These services are provided by our Wealth Management Group.

Not FDIC Insured May Lose Value Not Bank Guaranteed

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What is CDARS?

CDARS® for Individuals

With CDARS®, United Bank can offer you multi-million-dollar FDIC insurance coverage - so you can manage all of your certificates of deposit through a single bank relationship without hassle.

With CDARS, you get One Bank, One Rate, One StatementSM.

One Bank. Investors can access multi-million-dollar FDIC insurance coverage by working directly with just one bank - the bank they know and trust.

One Rate. Investors earn one rate for each CD maturity and enjoy the option of reinvesting funds through a simple process.

One Statement. Investors receive one easy-to-read statement summarizing all of their CD holdings.

With CDARS, you can say "goodbye" to running around town to multiple banks - no more opening up multiple title accounts in different rights and capacities of family members to maximize FDIC insurance at one bank. There also is no need to manually consolidate account statements or interest disbursements, which frees up your valuable time. You can enjoy the peace of mind associated with access to FDIC insurance on your CDs. You've worked hard for your money. Now, let it work hard for you.

For more information, stop by your local United office.

Limits apply. Funds may be submitted for placement only after a depositor enters into an agreement with a network member bank.

CDARS is a registered service mark of Promontory Interfinancial Network, LLC.

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