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CD & IRA FAQs

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What is the minimum opening balance for a CD?Where can I find CD rates?When my CD matures, how long do I have to renew or close the account?How will I be notified that my CD is going to mature?How do I renew my CD account?How long will it take to process my CD application?When do I start earning interest on my CD?Which rate is applied to my CD?Does the bank charge a penalty for early withdrawal of my money?What is an IRA?What is a Roth IRA?What is a Traditional IRA?What are the differences between Roth IRA and a Traditional IRA?How much can I contribute to an IRA?If I contribute to a 401(K), 403(b) or other employer-sponsored plan, can I also contribute to an IRA?What is a Rollover IRA and why would I want to establish one?What’s the difference between a Rollover and a Transfer?What is the difference between a Direct Rollover and Indirect Rollover?I have a Rollover IRA somewhere else; can I transfer that?I just got married—how do I update my accounts?I just got divorced—how do I update my accounts?Why Is It Important To Designate Power Of Attorney?
What is the minimum opening balance for a CD?

The minimum opening balance varies depending on the type of CD account. View our CD Accounts for details.

When my CD matures, how long do I have to renew or close the account?
  • For CD account terms that are 7-27 days, there is a grace period of 1 calendar day
  • For CD account terms that are 28 or more days, there is a grace period of 7 calendar days

Please note that a deposit, withdrawal, or term change can be made only once during the grace period.

How will I be notified that my CD is going to mature?

A written Maturity notice or Soon to Mature notice will be sent at least 20 days in advance for CD terms of 30 or more days.

How do I renew my CD account?

CD accounts are set to auto-renew at maturity. Please visit a financial center or call a customer service representative at 888.827.1812 if you have any questions.

How long will it take to process my CD application?

After submitting your application, the application will be processed and you will be notified of the results via email within 1 to 2 business days.

When do I start earning interest on my CD?

Interest begins to accrue on the day the application is processed, not the day the application is submitted. Your application will be processed at the interest rate that was effective the day you submitted the application.

Which rate is applied to my CD?

The interest rate that was quoted on the day you applied is the rate that is applied to your CD. You will begin to accrue interest on the day the account is processed, not the day you apply.

Does the bank charge a penalty for early withdrawal of my money?

Yes. When you open a certificate of deposit (CD), you're agreeing to keep your money in the account for a specific period of time. If you want to withdraw your money earlier, you will be subject to the following penalties:

  • For CDs with terms of less than 90 days: all interest earned on the amount withdrawn or seven days interest on the amount withdrawn, whichever is greater
  • For CDs with terms of 90 days up to 12 months: 90 days interest on the amount withdrawn
  • For CDs with terms of 12 months up to 60 months: 180 days interest on the amount withdrawn
  • For CDs with terms of 60 months or longer: 365 days interest on the amount withdrawn

In addition to these penalties, you will also pay the amount of any cash bonuses you received when you opened or reinvested the account. For complete information about early withdrawals, please refer to page 10 of the Deposit Agreement and Disclosures document.

What is an IRA?

An IRA is an individual Retirement Account that may provide either a tax-deferred or tax-advantage way for you to save for retirement. There are many different types of IRAs but Roth, Traditional, and Rollover IRAs are the most common. An IRA is simply an account. In an IRA some people invest in mutual funds or stocks, while others may choose bank products such as CDs and money market savings. Each IRA has certain eligibility requirements and each has unique features. Finding the right IRA for you will largely depend on which IRAs you are eligible for and which one offers the benefits that are most important to you.

What is a Roth IRA?

A Roth IRA is a retirement savings account that provides federally tax-free growth and withdrawals once it has been open for 5 years and you are 59½ years of age. Contributions can be withdrawn at any time, tax and penalty-free. You can use a Roth IRA to hold investment products such as mutual funds, stocks, bonds, and ETFs or bank products like CDs and money market savings.

What is a Traditional IRA?

A Traditional IRA is a retirement savings account that provides federally tax-deferred growth. Withdrawals after the age of 59½ are taxed at your tax rate at that time. Contributions may be tax-deductible. You can use a Traditional IRA to hold investment products such as mutual funds, stocks, bonds, and ETFs or bank products like CDs and money market savings.

What are the differences between Roth IRA and a Traditional IRA?

While Roth and Traditional IRAs are both good choices when saving for retirement, there are many differences to keep in mind:

  • Any earnings in Roth IRA are federally tax-free. Earnings in a Traditional IRA are tax-deferred until withdrawn in retirement when they are taxed at your current rate.
  • Contributions to a Roth IRA can be withdrawn at any time, penalty-free. Withdrawals from a Traditional IRA before the age of 59½ are subject to taxes and a 10% federal penalty.
  • Anyone with earned income under the age of 70½ can contribute to a Traditional IRA. Roth IRAs are restricted to those who do not exceed certain modified adjusted gross income limits.
  • Traditional IRA contributions may be tax-deductible. Roth IRA contributions cannot be deducted.
How much can I contribute to an IRA?

If you’re under age 50, you can contribute up to $5,500 each year for 2017 and 2018. For each year during which you're age 50 or older, you can contribute an additional $1,000. Contributions must be made prior to each year's tax return deadline for the corresponding year (typically April 15).

If I contribute to a 401(K), 403(b) or other employer-sponsored plan, can I also contribute to an IRA?

Yes, if you are currently investing in a 401(k) or other employer-sponsored plan, you are still eligible to open and contribute to an IRA.

What is a Rollover IRA and why would I want to establish one?

A Rollover IRA is a retirement account specifically designed to receive transfers from a previous employer-sponsored retirement plan, such as a 401(k) or 403(b). By rolling over this account directly:

  • You can consolidate your retirement accounts for simplified management and greater control.
  • You get a wider variety of investment choices, letting you find investments that more closely fit your financial goals and style.
  • You maintain the tax-deferred status of your retirement savings while allowing them the opportunity to grow.

Learn more from Merrill Edge about your choices to see if you should roll over your 401(k)

What’s the difference between a Rollover and a Transfer?

It’s all about where the money is coming from. Open a Rollover when the money is coming from an employer-sponsored savings plan such as a 401(k). If your savings are already in a Traditional or Roth IRA, you simply open a new Traditional or Roth account and transfer your deposits or investments.

What is the difference between a Direct Rollover and Indirect Rollover?

With a Direct Rollover, the check from your employer sponsored plan is made out to the financial institution where you opened your IRA "for the benefit of" you. Since this money is deposited directly from the 401(k) to the IRA, no taxes are withheld.

With an Indirect Rollover, the check is made payable to you. Your former employer withholds a mandatory 20% for taxes. You have 60 days to deposit these funds into an IRA, and must make up the 20% yourself, otherwise the 20% withheld will be considered a taxable distribution and only 80% will continue to grow tax-free or tax-deferred. In addition, if you are under age 59½ you would be subject to an additional early withdrawal penalty of 10%.

I have a Rollover IRA somewhere else; can I transfer that?

Absolutely. Once you've opened a Rollover IRA it's easy to move your old IRA into it with assistance from our Retirement Help Desk.

I just got married—how do I update my accounts?
  • To add a spouse to an account, please visit your local financial center
  • Open new joint checking accounts. Open New Account
  • Send changes of address to all companies that bill you regularly.
  • Update bank account and safety deposit box agreements. Find a Financial Center
  • Update retirement plan beneficiary declarations.
    Beneficiary Election/Change Form
  • Update insurance policy beneficiary declarations. Contact Merrill Lynch at 1.800.637.7455
I just got divorced—how do I update my accounts?
  • Cancel all joint checking, savings and revolving credit accounts, such as credit cards. Your ex-spouse will not have access to your accounts created in a single name.
  • Establish accounts in your name for ATMs, checking, savings and credit cards.
  • Update the beneficiary designations for your existing retirement accounts and insurance policies.
    Beneficiary Election/Change Form
  • Update your online user ID if you once shared log-in information. Sign in to Online Banking, select Help & Support and then select Security Center.
  • Change any Power of Attorney authorities- Contact your personal attorney or your local financial center.
Why Is It Important To Designate Power Of Attorney?

Executing a Power of Attorney (POA) document is important for a wide range of reasons. From a financial perspective, your designated Attorney-in-fact (also known as Agent) would be able to act on your behalf in situations such as filing taxes, selling property, refinancing a mortgage or cashing checks. You should not execute a power of attorney unless you have complete faith in your designated Attorney-in Fact (Agent). As a convenience, Bank of America customers, in most states, may establish a Limited Power of Attorney for banking transactions by contacting your local financial center. However, your personal attorney can provide you with a General Power of Attorney form, which may cover many types of assets and transactions.

Note, to set up a Power of Attorney in the financial center, the Attorney-in-Fact (Agent) will need to be present to sign a Power of Attorney Signature Card Addendum for each account you wish to give them authority. As the Principal who executed the Power of Attorney, you may revoke it at any time, but you would need to inform the bank of any changes. A Power of Attorney terminates automatically at the death of the Principal.

*Currently, an Attorney-in-Fact cannot access a Principal’s accounts via Online Banking. However, access is available through the contact centers and financial centers.

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