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Certificates & IRAs


Certificates
Get fixed rates with just $500 for terms from 3 to 60 months.  Check out the information below if you're not sure how long you want to invest.
IRAs
  1. IRA share accounts: Build your IRA the easy way, a little at a time. Start with as little as $1 and deposit what you can when you can. You can even set up payroll deductions to automatically go into your IRA.
  1. IRA Certificates:  Increase your IRA earnings with just $500 and open an IRA certificate with maturities from 12 to 60 months. The IRA certificate rate is determined by the term you choose and is fixed for that period. Dividends are paid on the full balance of the certificate plus accumulated earnings paid to the certificate. Earnings are paid monthly and are added to the balance of the certificate.
  1. Insured Retirement Savings:  Your IRA deposits at NH Federal Credit Union are  insured to $250,000 by the National Credit Union Administration, an agency of the federal government.
Early Withdrawal:  Normally, you will pay a penalty if you withdraw your certificate before the maturity date.  For certificates with a term of 12 months, the early withdrawal penalty is 90 days of simple dividends (not compounded). For certificates with a term of over 12 months, the early withdrawal penalty is 180 days of simple dividends (not compounded). If necessary, the principal will be invaded in order to pay a certificate penalty.  Also note:  If you are under age 59 1/2, you will also pay a penalty tax for IRA withdrawals that are not reinvested into another IRA or qualifying plan.

Get the Best of Both Worlds by Laddering Your Certificates & IRAs
You've accumulated substantial savings and you want to earn the best interest.  So what's the best alternative?  You can continue earning mediocre dividends with short-term certificates, or you can lock your funds in for a longer term for better earnings.  But, if rates rise significantly over the next year or two, your money will be stuck in an investment with below-market rates... Do you put your money in longer-term certificates to get the highest rate? Or do you invest in shorter-term certificates to keep your money more readily accessible - even if it means settling for a lower rate now?  Do both.

"Laddering" is a strategy that lets you have it both ways. Say you have $5,000 to invest in certificates. Put $1,000 each into certificates that mature in one, two, three, four, and five years. One year later, your first certificate matures, yielding you $1,000 plus dividends earned. If you need the money, you cash in. If you don't, you reinvest in a new five-year certificate, at current market rates.  The next year, the two-year certificate matures. Again, if you don't need the money, you reinvest in a new five-year certificate. By the end of the fourth year, all your money is earning at the five-year rate. Yet a certificate matures each year, so you can tap into the cash if you need it or reinvest at market rates. 

Laddering gives you both bigger savings and the advantage of maintaining access to your money.  Spreading the maturities from one to five years is just one strategy. You can ladder any way you wish to best meet your financial needs.
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Concord, NH 03301
(603) 224-7731
(800) 639-4039
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Lee, NH
(603) 224-7731
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