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People Driven Credit Union

IRA Variable Rate Savings Account

Grow Your Retirement with a Variable Rate IRA Savings Account

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Start Small, Save Big with an IRA Variable Rate Savings Account

The IRA Variable Rate Savings Account at People Driven Credit Union offers a flexible way to build your retirement savings while earning a steady return. With options for Traditional, Roth, and Educational IRAs, this account is tailored to meet diverse financial goals. Ideal for savers looking to make steady contributions with easy access, our IRA Variable Rate Savings Account provides the flexibility to adjust your deposits while planning for a secure future.

Ready to open an account? Schedule an in-person appointment at any of our branch locations to get started. Secure your retirement savings with a blend of flexibility, growth, and security tailored to fit your needs.

Features

  • Low Minimum Balance: Start saving with as little as $100.
  • Earn Interest: Enjoy a 0.35% Annual Percentage Yield (APY) to help your savings grow.
  • Choose Your IRA Type: Depending on your retirement needs, you can choose from Traditional, Roth, or Educational IRAs to take advantage of tax-deferred or tax-free growth.

IRA Variable Rate Savings Account Rates

³New money required to qualify for this rate. Only new funds transferred from external sources to the credit union qualify for this promotion.

Type

Minimum Deposit

Dividend/Interest Rate

APY²
Traditional $100 0.350% 0.35%
Roth $100 0.350% 0.35%
Educational $100 0.350% 0.35%

Rates Effective as of:

Frequently Asked Questions

An IRA Variable Rate Savings Account is a retirement savings option that offers tax-advantaged growth with a flexible, variable interest rate. This account can be opened as a Traditional, Roth, or Educational IRA, depending on your tax and savings goals.
The interest rate for a Variable Rate IRA Savings Account is variable, meaning it can change over time based on market conditions. Currently, the Annual Percentage Yield (APY) for this account is [wpdatatable_cell table_id=20 row_id="2" column_key="D"].
You can open an IRA Variable Rate Savings Account with a minimum balance of $100.
Yes, this account is well-suited for those who plan to make regular contributions, as it allows flexible deposits while maintaining tax advantages.
Yes, withdrawals are allowed, but they may be subject to taxes and potential penalties depending on your account type (Traditional, Roth, or Educational IRA) and when you withdraw the funds.
Tax advantages vary by IRA type:
  • Traditional IRA: Contributions may be tax-deductible, and earnings grow tax-deferred until withdrawal.
  • Roth IRA: Contributions are made with after-tax dollars, and earnings can be withdrawn tax-free in retirement.
  • Educational IRA: Earnings grow tax-free if used for qualifying educational expenses.
Yes, IRA Variable Rate Savings Accounts at People Driven Credit Union are federally insured to at least $250,000 by the NCUA and backed by the full faith and credit of the United States Government.

APY stands for Annual Percentage Yield. It is a measure of the total amount of interest earned on an account based on the interest rate and the frequency of compounding over a year. APY is a useful metric for comparing the annual earnings on different savings products, such as savings accounts, CDs, and money market accounts, because it standardizes the effect of compounding.

Key Points About APY

  • Includes Compounding: APY accounts for how often interest is compounded (e.g., daily, monthly, quarterly), which can significantly affect the total interest earned over time.
  • Comparison Tool: APY provides a standard way to compare the annual interest earnings of different savings products, regardless of how frequently interest is compounded.
  • Formula: The formula for calculating APY is: 
    APY = (1 + r/n)^n - 1
    where r is the nominal interest rate (expressed as a decimal), and n is the number of compounding periods per year.
  • Higher APY: A higher APY indicates that you will earn more interest on your money over a year, assuming the same principal amount.

Example

For example, if a savings account offers an interest rate of 5% compounded monthly, the APY would be higher than 5% due to the effect of monthly compounding. This makes APY a useful metric for comparing the real return on different financial products.

Disclosures

For more details about IRAs, please ask the credit union for a brochure, or visit the Internal Revenue Service. 

Federally Insured: Savings at People Driven Credit Union are federally insured to at least $250,000 by the NCUA and backed by the full faith and credit of the United States Government.

²APY = Annual Percentage Yield. APY is a standardized measure of the total interest earned on a deposit account over one year, based on the interest rate and the frequency of compounding. APY assumes that interest remains on deposit until maturity. Early withdrawals and applicable fees may reduce earnings. Rates are effective as of and are subject to change at any time without notice.


Money Market Accounts:

  • $1,000 minimum deposit required to open
  • Interest rate and Annual Percentage Yield (APY) may change at any time without notice, both before and after the account is opened
  • No limit on preauthorized transfers and/or withdrawals
  • ³New money required to qualify for this promotional rate. Only funds transferred from external institutions qualify as new money

Membership Requirement:

All accounts and loans require membership at People Driven Credit Union. Membership is available to individuals who live, work, worship, or attend school in the State of Michigan, as well as relatives of current members. To complete an application for any account or loan, you will need the following information:
  • A valid Driver's License, State ID, or Passport with your current address
  • Your Social Security Number
A Membership Share Savings Account is required to establish membership at People Driven Credit Union. A $5 deposit secures your ownership share in the credit union and unlocks access to our full suite of products and services. This account earns 0.01% APY with a $5 minimum deposit.

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