INVESTORS MONEY MARKET ACCOUNT
A premium money market account that rewards high-balance
investors with greater returns without the loss of liquidity. Not
available to for profit corporations and partnerships by federal law.
Product
Features and Benefits
- $50,000 minimum to open and provides
greater return than standard money market accounts at most banks.
- Interest rate is subject to change monthly
to reflect current market conditions.
- No term or early withdrawal penalty.
- Interest is accrued daily on daily
collected balances of $50,000 and over maximizing earnings.
- Interest is compounded and credited
monthly which increases yield.
- Unlimited access to account with personal
over-the-counter transactions in the bank.
- Sweep excess funds from your checking
account to take advantage of higher earnings.
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CERTIFICATES OF DEPOSIT
An investment account
where funds remain on deposit for a specified term.
Product
Features and Benefits
- Both personal and business certificates
available meeting all investment needs.
- Flexible and affordable investment plans.
- Minimum deposit required as low as
$1,000.00 depending on certificate's term.
- Terms available from 32 days to five years
allowing customers to select the term to meet their particular needs.
- Minimum deposit varies with the term:
| TERM |
MINIMUM DEPOSIT |
| 32, 91, & 182 days |
$2,500 |
| 12, 24, 36, 48 & 60
months |
$1,000.00 (Negotiable) |
- Maturity date and interest rate is
determined at time of opening; rate is guaranteed for entire term.
- Certificate rates are determined weekly to
reflect market conditions assuring an interest rate geared to market
conditions.
- Certificates with terms shorter than one
year earn simple interest payable at maturity.
- Certificates with terms of one year or
longer have interest compounded quarterly or semiannually upon request.
Compounding provides a greater return.
- Interest can be received via four
convenient options:
1. Transfer to checking account.
2. Transfer to savings account.
3. Compound to Certificates of Deposit.
4. Check sent directly to customer.
- If not a special term, certificates can
renew automatically on maturity date at the prevailing interest rate for
the term involved.
- Maturity notice is mailed to customer
approximately 12 days prior to maturity date which provides a timely
reminder for availability of funds.
- Customer has 10-calendar day grace period
from the maturity date during which withdrawals can be made without
penalty allowing flexibility in managing investments.
- Certificates of Deposit can be used for
collateral on loan which gives customers lower rates on loans and they
can avoid the early withdrawal penalty. Loan rate is generally 3% above
Certificate of Deposit interest rate.
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INDEX POWERED™ CD
A certificate of deposit tied to the
performance of the S & P 500® Index*, and therefore has the potential to
far outperform traditional fixed rate investments. GREAT FOR IRAs!
Product
Features
- Both personal and business certificates
available.
- Minimum deposit required is $1,000.00.
- 5-year term.
- Interest tied to the performance of the S
& P 500® Index.
- Return of principal guaranteed if held to
maturity, so you can rest easy during value changes in the market.
- No management or sales fees. 100% of your
initial investment goes to work for you.
- FDIC insurance protection up to $100,000.
- Issued on 18th of each month. Orders
taken until 2 days prior to each issue date.
- Interest paid at maturity, although
1099-OID is sent each tax year.
- Opportunity of the market with the safety
of your hometown bank.
For more information on the Index
Powered™ CD, go to www.indexpoweredcd.com.
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| *"Standard &
Poor's®" "S&P 500" "Standard
& Poor's 500" and "500" are trademarks of The
McGraw Hill Companies, Inc., and have been licensed for use by the
Bank. "The Product is not sponsored, endorsed, sold or promoted
by Standard & Poor's and Standard & Poor's makes no
representation regarding the advisability of investing in the
Product." |
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CDARS CDs
Looking for a way to keep large deposits safe? Ask us about CDARS®. It’s a great solution for: businesses * nonprofit organizations * public funds managers * trustees * financial advisors * individuals * credit unions * IRAs
With CDARS, you can receive up to $50 million in FDIC protection through Sherman and Howard County Banks. There are few guarantees in life – FDIC insurance is one of them. CDARS can be a valuable cash management or longer-term investment tool for you or your business.1
Why CDARS?
It’s one-stop shopping. With help from CDARS, you can access:
- Safety – Your money can receive up to $50 million in FDIC insurance coverage.
- Convenience – You work directly with us. You earn one interest rate and receive one regular statement. Individual investors receive one year-end tax form.
- Community Investment – The full value of your money can support lending opportunities in your local community.2
- CD-Level Rates – Your money earns CD-level returns which may compare favorably with other investment alternatives, including Treasuries, corporate sweep accounts, and money market funds.
How does CDARS work?
We are members of a special network. When you place a large amount with us, we place your funds into certificates of deposit issued by other banks in the network – in increments of less than $100,000 – so that both your principal and interest are eligible for complete FDIC protection. With help from a sophisticated matching system, we exchange deposits with other banks that are members of the network.
These exchanges, which occur on a dollar-for-dollar basis, can bring the full amount of your original deposit back to our bank. As a result, we can make the full amount of your deposit available for community lending purposes.
What else should I know?
Now, you no longer have to spend time managing multiple bank relationships, administering various interest rates, organizing interest disbursements from various sources, or manually consolidating monthly statements. This reduces your administrative burden, especially during tax and financial reporting seasons.
And with CDARS, you can eliminate the need to monitor changing collateral values – another time saving convenience.
Of course, your confidential account information remains protected.
Ask us about how CDARS can work for you the next time you visit one of our branches, or email jodis@shercobank.com for more information.
1 Funds may be submitted for placement only after a depositor enters into the CDARS Deposit Placement Agreement with Sherman and Howard County
Banks. The agreement contains important information and conditions regarding the placement of funds by us.
2 This benefit applies to some, but not all types of CDARS transactions. Let us know if this benefit is important to you, so that we can explain the relevant
terms and conditions in more detail.
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Traditional IRA
If you are younger than age 70 ½ for the entire tax year and have earned income that does not exceed the modified adjusted gross income limits, you are eligible for a Traditional IRA. Tax-deductible contributions of up to
$4,000 (2005-2007, $4,000; 2008 and thereafter, $5,000.). Catch-up contributions are available for people age 50 and older. Contributions can be made until April 15 of each year for the previous year. All earnings on your IRA contributions remain tax deferred until you make withdrawals from the account.
The IRS assesses a 10% penalty on withdrawals taken before the age of 59 ½, unless one of the following reasons applies: death, disability, certain periodic payments, qualified medical expenses, qualified health insurance if unemployed, qualified higher education, or first-time home buyer. Distributions are required to begin at age 70 ½.
IRAs are generally funded using Certificates of Deposit or Index Powered™
CD's.
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Roth IRA
A Roth IRA account allows only non-deductible contributions and withdrawals are tax-free for certain distribution reasons after a five year holding period. NOTE: The term “tax-free” means free from federal income taxes. You (or your spouse) must have earned income and your modified adjusted gross income cannot exceed certain limits. Contributions can be made until April 15 of each year for the previous year. After a five-year holding period, qualified distributions of earnings are tax free and penalty free if taken for the following reasons: distributions made after age 59 ½, death, disability, and first-time home buyer. Distributions that are subject to taxes on any earnings withdrawn, but no penalty if taken for: substantially equally periodic payments, qualified medical expenses, qualified health insurance if unemployed, higher education expenses, payments made on IRS tax levy, or distributions taken
within the first five years for any of the following reasons: before age 59 ½, death, disability, or first-time home purchase. Original contribution amounts are not subject to taxation or a 10% IRS penalty when distributed. You never have to take distributions from your Roth IRA.
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SEP (Simplified Employee Pension plan) IRA
The Simplified Employee Pension plan is a great way for any employer, especially sole proprietors and agriculture producers to save for retirement. Employers contribute money into its employee’s traditional IRA, no employee deferrals allowed. Employees must satisfy the age, service, and minimum compensation requirements as set by the employer. Contribution percentage must be the same for all eligible employees. The employer receives the tax deduction and the contribution is not income to the employee until distributed from the IRA.
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COVERDELL EDUCATION SAVINGS ACCOUNT
(previously the Education IRA)
The Coverdell Education Savings Account (CESA)
is a nondeductible account that features tax-free withdrawals for a child's
education expenses. Contributions may be made until April 15 of each
year for the previous year and cannot exceed $2,000 per child.
Qualified distributions from a CESA are penalty free and federal income tax
free. Qualifying higher education expenses are: tuition, fees, books,
supplies, room and board, and equipment required. Funds from a CESA
may be used to pay qualified elementary and secondary education
expenses. The earnings portions of nonqualified distribution are
subject to taxes and a 10% IRS penalty tax. A CESA can be transferred
to another member of the same family.
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