How To Maximize Your Savings With CDs and IRAs

Saving money is an essential part of achieving financial security. At First South Financial, we're committed to helping our members reach their savings goals. Whether you're saving for a short-term objective or planning for a comfortable retirement, we offer multiple options to make your money work for you.

Understanding Certificates of Deposit (CDs)

A  Certificate of Deposit (CD) is a secure savings account that offers a guaranteed interest rate for a fixed term. You deposit a specific amount for a predetermined period (like three months, a year, etc.) and earn interest throughout the term. The main advantage of a CD is the predictable growth of your savings. You know exactly how much interest you'll earn because the rate is locked in when you open the account. This makes CDs a great choice for short-term or long-term savings goals.

Benefits of Using CDs at First South Financial

• Competitive Rates: We offer attractive interest rates on our CDs, allowing you to maximize your return.
• Guaranteed Growth: Your interest rate is locked in for the term of the CD, ensuring predictable growth on your savings.
• Security: Your funds are federally insured up to $250,000 by the National Credit Union Administration (NCUA), providing peace of mind.

First South Financial's Current CD Specials

We're currently offering exciting CD specials to help you boost your savings:

• Bonus Bundle CD: Earn a 10% APY on the first $1,000 and 4.75% APY on the remaining balance up to $5,000 for a 5-month term.
• 4-Month CD Special: Need to save for a short-term goal? Our 4-Month CD Special allows you to earn an estimated 5% APY.

Important Note: These are limited-time offers, so be sure to take advantage of them before they expire! Please refer to the blog post dates for the most up-to-date information on these promotions.

Understanding Individual Retirement Accounts (IRAs)

An  Individual Retirement Account (IRA) is a savings account designed to help you accumulate funds for retirement. IRAs offer tax advantages to incentivize saving for your future. There are two main types of IRAs: Traditional IRAs and Roth IRAs. The tax benefits associated with each type vary, so it's important to consult a financial advisor to determine which option is best for you.

Benefits of Using IRAs at First South Financial

• Competitive Rates: Earn a high interest rate on your retirement savings to help you reach your financial goals faster.
• Tax Advantages: Depending on the type of IRA you choose, you may qualify for tax deductions on your contributions or tax-free withdrawals in retirement.
• Long-Term Focus: IRAs encourage long-term saving habits, which are crucial for a secure retirement.

IRAs can be a great way to supplement a 401(K) or other employer-sponsored plan. We offer the following types:

• Traditional IRA: Contributions may be tax deductible, depending on your income, and your earnings grow tax-deferred until withdrawal in retirement. However, there are required minimum distributions (RMDs) starting at age 70 ½.
• Roth IRA: Contributions are made with after-tax dollars, but your earnings grow tax-free and can be withdrawn tax-free in retirement. There are no RMDs with Roth IRAs.
• Coverdell IRA/ESA: This specialized IRA is designed for saving for educational expenses. Contributions may be tax-deductible (up to certain limits), and qualified withdrawals for education purposes are tax-free.

First South Financial's 7-Month IRA Special

We're offering a limited-time 7-month IRA Special with an estimated 5.25% APY. This is a great opportunity to give your retirement savings a significant boost.

Don't Have $5,000 to Start? No Problem!

While our promotional CDs require a $5,000 minimum deposit, First South Financial offers a variety of savings tools to help you get started, even with smaller amounts. Consider our Christmas Club account – by saving just $10 per week, you'll have over $100 by November! This is a perfect way to build a small nest egg and then use it to open a Build-it CD which earns 0.30% APY. Once you've saved enough, you can easily convert your Build-it CD to a standard CD with even higher rates.

Ready to Start Saving?

First South Financial is here to help you achieve your financial goals. Visit your nearest branch or explore our website today to learn more about our CDs, IRAs, and other savings options.

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