Investment Accounts

You can choose to open an individual retirement account (IRA) Certificate. The idea is that your funds are continually reinvested in Certificates until you reach at least 59 ½ or until you reach retirement.

• You will usually choose the longest term available so you get the highest rates.
• You want to check current rates each time your term ends because there may be special rates on offer for specific terms.
• You can choose from Traditional IRA or Roth IRA Certificates, which are tax-advantaged accounts that you can usually open in addition to or instead of a 401(k) plan or similar workplace account.
• A Traditional IRA offers tax deductions on contributions then you pay income taxes on withdrawals, while a Roth IRA has no deductions on contributions but then you get tax-free withdrawals.
• Another type of IRA is a Coverdell Education Savings Account, which helps you save for your child or beneficiary’s education expenses.

A Money Market Account has similarities and differences with some of our other savings and investment tools. Here’s what you need to know:

• You can earn higher interest rates than regular savings if your balance is over $10,000.
• Like a savings account, you can keep adding funds whenever you want.
• You don’t need to leave your funds untouched for a term, as for a Certificate.
• You may make up to six withdrawals per month by the approved methods.
• You may earn interest at higher or lower rates than a Certificate.
• The National Credit Union Administration (NCUA) insures funds up to $250,000.

Note that the minimum balance required to open an account is $10,000 and you need to maintain that balance to earn higher rates than a regular savings or deposit account.

A checking account is a better option if you plan to regularly withdraw, but a Money Market account does let you withdraw funds provided you follow a few simple guidelines:

• No more than six (6) preauthorized, automatic, or telephone transfers may be made from the account to another account or a third party in any month.
• No more than three (3) of these six (6) transfers may be made by writing checks or drafts to a third party.

Legacy Credit Union is a full-service financial institution and you can add funds using any method that suits you:

• In person at one of our branches in Birmingham, Alabama
• Transfer using Online and Mobile Banking
• Direct deposit
• Payroll deduction