The Power of Tax-deferred Compounding

Start early, benefit more
Hypothetical example1
Graph showing a hypothetical example of how starting early can help savings grow. The chart shows the difference between investing $4,000 a year for 10 years starting at age 25 and investing $4,000 a year for 30 years starting at age 35.
Allison and David both retire at age 65 and both invest the same amount over 20 years. However, because Allison started earlier and took better advantage of long-term, tax-deferred compounding, she has $91,000 more in retirement savings than David.
1 Chart assumes $4,000 annual IRA contributions made on January 1 of each year. Assumes annual percentage yield of 4.00% on a bank deposit IRA with tax-deferred compounding. This example is for the purpose of illustrating the effects of tax-deferred compounding, and does not necessary represent rates and terms currently available from the Bank. Future yields may vary, and the Bank offers no assurance that rates and terms offered today will be offered in the future. Final account balances are prior to any distributions, fees, and taxes which would lower the ending balance. Taxes may be due upon distribution. You may be subject to a 10% penalty if you withdraw prior to age 59½.
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