NEW YORK -- Retirement may still seem far off right now, but it's closer than you think. No matter what age or stage of life you're in, it's never too early to start saving and it's never too late to move your retirement savings to an account that will help it grow more quickly and more safely.
But how do you know what retirement account is best for you? Here are three features to look for when choosing where to grow your nest egg:
1. Safe, Steady Growth
The higher the interest rate, the more money you'll save and the earlier, and more comfortably, you can retire. Unfortunately, the average savings account rate is currently just .10% APY. Investment accounts may offer higher returns, but they also come with risks - if the stock market dips, so may your retirement nest egg. Consider a retirement account that offers a competitive rate that won't be affected by market volatility and which is FDIC-insured.
At Ridgewood Savings Bank, our Flex IRA CD is FDIC-insured up to legal limits(1) and offers the following guaranteed rates:
1.85% APY2 for 10 months
1.95% APY2 for 20 months
2.05% APY2 for 30 months
Some financial institutions offer accounts that seem great - until you read the fine print and realize that there are a lot of restrictions. You may be drawn in by a high rate, only to learn that the minimum deposit is thousands of dollars. You may assume you'll be able to deposit more money in your account as you go, only to find that deposits are only allowed at the time the account is opened.
The Ridgewood Flex IRA CD is different. It can be opened with as little as $100 and you can make additional contributions of $20 or more anytime. (3)
3. Potential Tax Advantages(4)
Everyone wants to pay less in taxes. With a tax-advantaged Ridgewood Flex IRA CD, qualifying savers could potentially lower their taxable income - and their tax bills - in the present, or receive tax-free distributions in the future. Eligible savers can make 2019 IRA contributions through April 15, 2020, so take shelter this IRA season by opening an account before you do your taxes.
The Right Retirement Account from the Right Bank
If you're looking for a flexible retirement savings account with a competitive rate, guaranteed growth, a low minimum deposit and potential tax advantages, look no further. With a Flex IRA CD from Ridgewood Savings Bank , you can rest easy knowing you'll get all this, plus friendly, personal service from a local bank that's been helping New Yorkers achieve their goals for nearly 100 years.
Open an account today at your local Ridgewood Savings Bank branch or by calling (877) 417-6547.
1 Retirement accounts held by a person at Ridgewood Savings Bank are generally insured by the FDIC up to a total of $250,000.
2 Annual Percentage Yield. Early withdrawal penalties apply to Flex IRA CD accounts. Each Flex IRA CD may only be opened as part of an Individual Retirement Account relationship. Rates and terms are accurate as of 1/13/2020 and are subject to change without notice. Fees could reduce earnings. Maximum deposit is $250,000.
3 Additional contributions must be made in at least $20 increments.
4 Please consult your tax advisor. Contributions permitted up to legal limits. Deposits to an existing IRA account will be reported by the Bank for the year in which the deposit was received by the Bank. In order for a deposit to an existing IRA account to be reported for the prior calendar year, the deposit must be made in person and received by the Bank prior to the applicable IRS deadline.
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