Savings and Savings Rates

Share Savings Account
Share Draft (Checking) Account
Money Market Checking Account
Christmas Club Account
Certificate of Deposit
Individual Retirement Account (IRA)
Roth IRA
Education IRA
Savings Rates

Share Savings Account

Our Share Savings Account pays attractive dividends, and can be coupled with an automated transfer or payroll deduction for a systematic savings routine. Minimum average daily balance to receive dividends is $100.

Ever wonder how we calculate your share account dividends? It's really quite simple. We just take your account's lowest daily balance after the 10th of that month for each month of the quarter. However, if withdrawals are made within the quarter, your monthly lowest balance will change accordingly. Calculate the monthly dividend rate by dividing the annual rate by 12. Multiply each month's low share balance by the monthly dividend rate. This gives you each month's dividend. Add the monthly dividends together to get the total dividend for the period.

For example, if the quarterly dividend is 3.25% APR, your monthly dividend is 0.271%. Suppose your share account's low monthly balances are $600 for January, $500 for February, and $1000 for March. First you must lower the amount from $600 to $500 for January because a withdrawal was made in February. You would then be paid on balances of $500, $500 and $1000. Then your dividend each month would be: $1.36 for January, $1.36 for February, and $2.71 for March. Add these up for a total quarterly dividend of $5.43.

Share Draft (Checking Account)

We have put together the checking account to end all checking accounts! You only pay check print change - your credit union also pays you dividends with a $250 minimum balance. No monthly service charge, no per check charge, no monthly fees and we pay you! What more could anyone want in a checking account!

Dividends paid on share draft accounts are paid monthly on the lowest monthly balance after the 10th of the month. Suppose the annual rate is 1.50% APR, divide the annual rate by 12 which gives you a monthly rate of 0.125%. If your lowest monthly balance is $300, you just multiply $300 by 0.125%. You would be paid a dividend of $.38. Keep in mind that we only pay on balances of $250.00 or more on share draft accounts.

Money Market Checking Account

A Money Market Account can increase yields on your funds in a safe, liquid investment. With a minimum deposit and average daily balance of $1,000, funds earn money market rates. Rates are determined by surveying competition and may change without notice.

Dividends for the money market accounts of $1000.00 or more are calculated the same as share drafts with the exception of a higher dividend rate. We do not have per check charges or monthly fees with transactions.

Christmas Club Account

A Christmas Club Account is an ideal way to save for the holidays. This account earns dividends, and may be opened with as little as $10 per month by Payroll Deduction. Dividends are calculated the same as share drafts.

Certificates of Deposit

These investment plans are designed for members with as little as $500 to invest. No matter what your investment needs, your credit union is always available and equipped to help.

You can choose your certificate plan with maturity dates from 12, 30 or 60 months.

Dividends on certificates are paid monthly or quarterly and certificate holders may request a monthly interest check to be deposited in their share/deposit account, share draft account, or mailed directly to their home. All certificates, except IRA certificates, may be used as collateral on all loans at the credit union. There is a substantial penalty for early withdrawal of certificate accounts.

Dividends on certificates are paid on a daily method. This means the dividend is paid on each day's balance. Suppose you had a certificate with a balance of $5000.00. The annual rate is 4.0% and you had a certificate with a balance of $5000. The annual rate is 4.0% and you are paid a monthly dividend. You would take $5000 times the number of days in the month times the annual rate and then divide by 365 (days in the year). $5000 x 31 X .04 = $16.99.

Individual Retirement Account (IRA)

Save confidently for retirement with an IRA. The amount eligible for deduction from your federal income tax is based on the amount of your annual earned income. Earnings on your IRA are exempt from federal income tax until you reach retirement age and start receiving distributions. IRAs at the Petroleum Associates Federal Credit Union are insured up to $100,000 by the National Credit Union Administration.

Roth IRA

Named for Senator Roth of Delaware, this IRA allows you to withdraw funds tax-free if they've been in the account at least five years and; (1) you are older than 59 1/2, or (2) you become disabled, or (3) you die and they're paid to your beneficiary, or (4) you use the money for a first-time home purchase. Contributions are nondeductible and limited based on income.

MOVING FUNDS FROM REGULAR TO ROTH IRA -You can convert funds from a regular IRA to a Roth IRA if your adjusted gross income doesn't exceed $100,000 (for both singles and married couples). You also should know that income is realized in the year you convert the funds, but if you converted funds before January 1, 1999, you can spread out the income and therefore any related taxes over four years.

Education IRA

This new IRA allows you to contribute up to $500 a year per child younger than age 18. Note though - the contribution is not tax-deductible. The real benefit; Withdrawals are tax-free if used for qualified higher-education expenses, such as tuition and fees.

And lawmakers didn't neglect the old standby IRA when it came to handing out improvements. With higher income limits on IRA deductions - for contributions starting the 1998 tax year and increasing in subsequent years - more people may deduct their IRA contributions.

Savings Rates

*Rates effective 3-22-2006. Call the Credit Union for current rates.
**Rates effective 3-22-2006.
*** Rates effective 3-22-2006 and are subject to change.

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