CDs | IRAs | HSAs

Certificates of Deposit (CDs)

Leighton State Bank offers a variety of CDs, all with a $500 minimum balance requirement.  Maturity terms vary from 91 days to five years.  Since CDs are FDIC insured, you can enjoy the security of a savings account but earn the higher interest associated with an investment.

We currently offer a Step CD in either a three or four year term.  If interest rates go up, you can earn higher interest too!   You are eligible to step-up your rate once during the CD term, any time after the initial 12 months.

Individual Retirement Accounts (IRAs)

IRAs allow you to accumulate funds for retirement purposes.  Your retirement goals are important to us and we offer several types of accounts that can help you reach your goals.  Tailor your IRA investment preferences using different products, including savings accounts and certificates of deposit.

Traditional IRA:

    1. Contributions are tax-deferred until withdrawal.
    2. Contributions may be tax deductible, depending on annual income.
    3. Take advantage of the Flex IRA option, which allows you to make smaller contributions on a regular basi

Roth IRA:

    1. Unlike Traditional IRAs, Roth IRAs are made with after tax funds.
    2. Continue to make contributions after reaching age 70 ½, if you still have earned income.
    3. This IRA option grows tax free.

Flex IRA:

    1. Gives you more flexibility.
    2. Choose the term and date of contribution (weekly, monthly, quarterly or semi-annually).
    3. You decide if your Flex IRA will be taxed now or tax-deferred.

SEP (Simplified Employee Pension) IRA:

    1. Any employer – including sole proprietor, partnership or corporation – can establish a SEP for employees.
    2. Contributions are tax-deferred until withdrawal.
    3. IRA contributions are tax deductible by the employer, and are not included in the employee’s income for the year.

Coverdell Education Savings Accounts (CESAs)

CESAs are a savings and investment account used to save for future education expenses.  Begin accumulating funds to be used for elementary and secondary education (K-12) expenses incurred in public, private or religious schools, as well as for college, technical school or postgraduate work.  Withdrawals are tax free when used for qualified education expenses – including tuition, fees, books, supplies and equipment required for enrollment/attendance at an eligible educational institution.  Contributions are not tax deductible.

Health Savings Accounts (HSAs)

HSAs are used to save money for future medical expenses.  HSAs are similar to a personal savings account, but the money in them is used specifically to pay for health care expenses.  You make contributions (or deposits) into your HSA, and then make distributions (or withdrawals) from the account when you need to pay for qualified medical expenses.

Benefits of an HSA:

  1. Tax Advantages
    • Contributions are tax-free.
    • You may claim a tax-deduction for contributions (even if you do not itemize your deductions on Form 1040).
  2. Account balances roll over from year to year and earn tax-free interest.
  3. An HSA is owned and controlled entirely by an individual or family.
  4. An employer may contribute to an HSA, but you own and control the money in your account.  The money is yours even if you change jobs or leave the workforce.

Requirements for an HSA:

  1. Must be under age 65, and not enrolled in Medicare.
  2. Must have coverage under an HSA-qualified, high-deductible health plan (HDHP).
  3. A high-deductible health plan must be your only health insurance.
  4. Must not be claimed as a dependent on another person's tax return.


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