Individual Retirement Accounts
Start building your nest egg today for greater peace of mind tomorrow. Open AccountSee RatesBenefits of a Bowater Credit Union IRA Account
Securely grow your retirement savings and enjoy earning compound interest on your money. Our IRA Accounts come with many attractive benefits, including:
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High-Interest Rates
Enjoy higher returns on your savings with our competitive interest rates.
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Peace of Mind
Rest easy knowing you’re steadily building a solid foundation for your golden years.
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Many Investment Options
Create a diverse portfolio to match your unique financial goals and risk tolerance.
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Tax Benefits
Benefit from potential tax savings that maximize growth over time.
Everything to Know About Our IRA Accounts:
An Individual Retirement Account (IRA) is a retirement savings plan. It offers attractive tax advantages to help you prepare for your future.
We offer three different types of IRAs:
Traditional IRA: Allows for tax-deferred growth. You only pay taxes on withdrawals during retirement.
Roth IRA: You make contributions with after-tax dollars, enabling tax-free withdrawals in retirement.
Coverdell Education Savings Account: Specifically designed for educational expenses. Coverdell accounts offer tax-free growth and withdrawals for qualified educational costs.
Our IRAs include the following features:
- Terms ranging to 60 months
- $500 minimum balance
- An accumulative IRA with a variable rate and no minimum balance. It’s ideal if you don’t want to commit to a specific term or don’t have $500 to invest.
- Deposit any amount and access the funds anytime without early withdrawal penalties (Traditional and Roth IRA rules and penalties still apply).
- Earns interest (see rates)
Start securing your financial future today with our diverse IRA options tailored to fit your needs. Click below to get started.
How to Open an IRA Account
Click or Visit
Click the blue button below or stop by a branch to start the process.
Choose Your Term
Fund your account with at least $500 and pick your preferred term.
Start Saving!
Sit back and watch your money grow thanks to compounded interest!
★★★★★
“10/10 would definitely recommend as a bank! Great and friendly staff.”
– Chance N., Calhoun, TN
FAQs About IRA Accounts
Q: What is the difference between a Traditional IRA and a Roth IRA?
A: A Traditional IRA lets your investments grow with deferred taxes. You pay income tax on withdrawals, usually after retirement. In contrast, a Roth IRA lets your savings grow tax-free. After age 59 ½, withdrawals are tax-free and penalty-free, under certain conditions.
Q: Can I open an IRA in Tennessee if I only have a small amount to invest?
A: Absolutely! Our Accumulative IRA is perfect for those who don’t have $500 to start. It has a variable rate and does not require a minimum balance. You can deposit any amount and withdraw your funds anytime without incurring early withdrawal penalties.
Q: How do IRA contributions affect my taxes?
A: Contributions to a Traditional IRA may be tax deductible, lowering your current tax bill. However, Roth IRA contributions are not tax-deductible, but they offer tax-free growth and withdrawals. Check with your tax advisor for more personalized advice.
Q: What are the terms for IRA CDs?
A: Our IRA CDs have terms of up to 60 months with a $500 minimum balance. This allows you to lock in a fixed rate for a term that aligns with your financial planning.
Q: How long can I contribute to my IRA and are there required distributions?
A: As long as you have earned income, you can continue contributing to your IRA. For Traditional IRAs, required minimum distributions begin at age 72, ensuring a gradual withdrawal of your retirement savings.
More Ways to Save
Christmas Club Savings Account
Start saving today for a holly, jolly Christmas. Competitive rates and compound interest will help your money grow!
Term Share Accounts (CDs)
Earn competitive returns with our insured high-yield certificate deposits.
Ultra 25 Term Share Account
Maximize your investment with our top-yielding 25-month certificate of deposit.