An Individual Retirement Account (IRA) is a type of trust or custodial account which must be established for the exclusive benefit of an individual and his or her beneficiaries. An IRA must be established within the United States and with a bank or other certain limited kinds of trustees.
TRADITIONAL IRA
The Traditional IRA is an account which allows you to defer taxes on your earnings until they are withdrawn. Also, certain contributions are tax deductible in the year they are made.
ROTH IRA
The Roth IRA is a nondeductible account that features tax free withdrawals for certain distribution reasons after a five-year holding period. Since Roth IRA contributions are nondeductible and taxed in the year they are earned, people who expect to be in a higher tax bracket when they retire may benefit more from these accounts than from a traditional IRA.
EDUCATION IRA
The Educational IRA is a nondeductible account that features tax-free withdrawals for a very specific purpose – a child’s higher education expenses.
Minimum balance to open this account
You must deposit at least $50.00 to open an IRA.
Account terms available
IRAs offered by First United National Bank are available for terms of 12 months, 18 months, 24 months, 30 months, 36 months, 48 months, and 60 months.
Rate information
Your interest rate and annual percentage yield are fixed for the term of the IRA. We will pay the rate for your account until the first maturity date.
Interest payment options
Interest will be compounded and credited quarterly to your IRA.
Daily balance computation method
We use the daily balance method to calculate interest on your account. This method applies a daily periodic rate to the principal in the account each day.
Accrual of interest on noncash deposits
Interest begins to accrue on the same business day you deposit noncash items (for example. Checks).
Time requirements
Your IRA will mature at the end of the stated term.
Withdrawal limitations
You may make withdrawals of principal from your account before maturity only if permitted by the bank and by IRA rules and regulations. You cannot withdraw interest from your account before maturity.
Early withdrawal penalty
If we consent to a request for a withdrawal that is otherwise not permitted you may have to pay a penalty. For an account with an original term of 12 months, the penalty will be 90 days interest on the amount withdrawn. For an account with an original term of more than 12 months, the penalty will be 180 days interest on the amount withdrawn. We will charge the penalty first against any interest in the account and any excess will be deducted from the amount you withdraw. There are certain circumstances, such as the death or incompetence of an owner, where we may waive or reduce this penalty.
Additions to account
You may make deposits into your account subject to IRA limitations on annual contributions. Please refer to your separate IRA agreement and disclosures.
Renewal policy
IRAs will automatically renew at maturity. You will have a 10 calendar day grace period following the maturity date to withdraw funds without penalty.
Renewal terms
Each renewal term will be the same as the original term, beginning on the maturity date. The interest rate will be the same rate we offer on the maturity date for IRAs which have the same term as the original account.
Please contact a bank employee for further information regarding Individual Retirement Accounts.
Member
FDIC
Contact Information
- Telephone
- (814) 354-7311
- FAX
- (814) 354-7372
- Postal address
- PO Box 7, Fryburg, PA 16326
- Electronic mail
- General Information: funb@venustel.com
Webmaster: funb@venustel.com - 24 Hour Telephone Banking Service
- FON FUNB
- (Toll Free) 866-366-3862
- (Local) 814-354-7369
- Internet Banking Service
- www.fun-bank.com