Certificate of Deposits

Looking to earn a guaranteed rate of return? A certificate of deposit or CD offers a convenient form of investing your short term funds.

The First National Bank of Litchfield offers a wide variety of CD options, from 32 days up to 5 years, with a minimum deposit of only $500. Check our current rates.

CDARS®

We are pleased to offer you CDARS (Certificate of Deposit Account Registry Service), an easy and convenient savings CD that allows you to deposit amounts of money up to $50 million and still be fully insured by the FDIC.

CDARS uses a large network to break up the deposit into smaller amounts in order to maintain full insurance by the FDIC. This large network is made up by many financial institutions including The First National Bank of Litchfield.

One rate. You earn one rate from your entire investment-omitting the worry of managing multiple rate negotiations and organizing multiple interest disbursements.

One statement. With CDARS, you’ll enjoy the simplicity of receiving just one regular account statement listing all of your CDs, along with the issuing banks, maturity dates, interest earned and other details. You also receive just one year-end tax form.

One bank. Everything is handled through FNBL. It’s that easy!

• View tutorial: How CDARS works
• Check our current CDARS rates.
• For additional information about CDARS, please contact your local branch or visit www.cdars.com.

CDARS is a registered service mark of Promontory Interfinancial Network, LLC.

Individual Retirement Accounts

Individual Retirement Account (IRA) Certificate of Deposit

What will your retirement look like? Would you sleep better knowing that you are prepared and on track to live the lifestyle you have envisioned in retirement?

An individual retirement account or IRA offers tax advantages to help your savings grow faster. When you fund it with a fixed rate CD, you'll achieve predictable interest earnings. You'll get fixed rates and FDIC insurance for up to $250,000.

Depending on the type of IRA you choose, contributions may be tax deductible and will grow either tax-deferred or tax-free. At The First National Bank of Litchfield we offer both traditional and Roth IRAs, and we will work with you to match the right product to your very specific needs and financial goals.

Terms of IRA CDs offered:

• 6 - 11 months
• 12 - 23 months
• 2-Year Double Bump
• 24 - 60 months

For more information, visit any of our local branches or call us toll free at 888-567-1814.

Traditional IRA. With tax advantages, increased contributions and new catch-up provisions, traditional IRAs offer a smart way to save for your future. Interest earned as income is not taxable until the funds are withdrawn. And typically, this means less taxes since you are usually in a lower tax bracket upon retirement.

• Contributions can be tax deductible in the year made depending on income level and participation in employer sponsored plans.
• Contributions can be made until the tax deadline, April 15th, for a prior year contribution.
• Catch-up program available to individuals age 50 and older, where currently an additional $1,000* may be contributed.
• Withdrawals can begin at age 59 1/2, and must begin by the April following the year the participant reaches age 70 1/2.
• Typically, individuals are taxed on an annual basis for distributions taken that year.
• Contributions can be made until age 70 1/2.

(*May be adjusted annually for inflation in $500 increments.)

Roth IRA. This differs from a traditional IRA in the sense that contributions are not tax-deductible. Contributions are made from after tax dollars, so IRA earnings will grow tax deferred. Interest earned is then tax exempt upon withdrawal, as long as certain criteria are met.

A Roth IRA may be the best choice for you if:

• You expect to be in the same or higher tax bracket after retirement.
• You already contribute to a 401(k) or other company sponsored plan.
• Or, you would want to contribute to your plan after age 70 1/2.

Rollovers & Transfers

Rollovers and transfers are ways to move retirement assets from one plan to another without incurring immediate taxation or penalties. Common reasons to do this are a change in employment or a desire to consolidate several accounts to one bank.

For transfers, you can transfer all or part of an existing IRA. There is no additional documentation for your federal tax return and there's no limit on the number of transfers, so you can time transfers of CDs and similar investments with maturity dates.

For rollovers, to avoid tax penalties you must deposit the funds within 60 days. You can roll over funds only once every 12 months in a given IRA and you have to document your rollover transaction when you file your federal taxes.

Catch-Up Contributions

Individuals that need to make up for lost time, and are closer to retirement, may be able to make larger contributions. Individuals who have reached age 50 by the end of the year will be able to make additional catch-up contributions of $1,000* per year to their traditional or Roth IRA.

(*May be adjusted annually for inflation in $500 increments.)