FAQ Category: Other
What is a Money Market IRA?
A Money Market IRA is a retirement savings account that combines the benefits of a Money Market Account with the tax advantages of an Individual Retirement Account (IRA). It provides a flexible option for those who want to earn competitive interest while maintaining easy access to funds for regular withdrawals or required minimum distributions.
Continue ReadingCan I open a Money Market IRA as a Traditional or Roth IRA?
Yes, a Money Market IRA can be opened under either a Traditional or Roth IRA, allowing you to choose the tax structure that best meets your retirement needs.
Continue ReadingWhat is the minimum balance required to open a Money Market IRA?
To open a Money Market IRA with People Driven Credit Union, a minimum deposit of $1,000 is required.
Continue ReadingHow does the interest rate work for a Money Market IRA?
Interest rates for a Money Market IRA are tiered, increasing as your balance grows. Our highest rate is available for accounts with a balance of $25,000 or more.
Continue ReadingIs a Money Market IRA a good option for required minimum distributions (RMDs)?
Yes, a Money Market IRA is well-suited for individuals who need to make regular withdrawals, such as RMDs, as it provides easy access to funds while continuing to earn interest.
Continue ReadingCan I withdraw money from my Money Market IRA at any time?
Yes, you can access funds as needed. However, early withdrawals may be subject to taxes or penalties depending on your account type (Traditional or Roth) and how long you have held the funds.
Continue ReadingHow do I open a Money Market IRA at People Driven Credit Union?
To open a Money Market IRA, you’ll need to schedule an in-person appointment at one of our branch locations.
Continue ReadingIs my Money Market IRA insured?
Yes, Money Market IRAs with 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.
Continue ReadingWhat’s the difference between an Educational IRA and a 529 Plan?
Educational IRA vs. 529 An Educational IRA, known as a Coverdell Education Savings Account (ESA), and a 529 Plan are both tax-advantaged savings options for educational expenses, but they differ in several important ways: 1. Contribution Limits Coverdell ESA: Annual contribution is capped at $2,000 per beneficiary. 529 Plan: Contribution limits are generally much higher, often exceeding $300,000, depending on ...
Continue ReadingHow do I transfer money in our online system (MyPDCU) securely.
To transfer money from one account to another within the MyPDCU mobile/online banking experience, follow these steps: Open the MyPDCU app or visit my.peopledrivencu.org and log in. Click the “Transfer” button. Select which of your accounts you wish to transfer money from. Select which account you wish to transfer money to. Type in the amount you wish to transfer. Once ...
Continue ReadingHow do I log out of the PDCU online system (MyPDCU) securely?
To log out of the MyPDCU app or online banking, follow these steps. Use the menu bar in the upper left-hand corner of the MyPDCU app or online banking. At the bottom of the menu bar, open the “^” popup next to your profile name. Click on “Sign out.”
Continue ReadingCan I withdraw my money before the 9-month term ends?
Withdrawing money from a 9-month CD before the term ends typically incurs an early withdrawal penalty. At People Driven Credit Union, the Early Withdrawl Penalty is a Loss of 90 days of interest for withdrawing funds early.
Continue ReadingIs my money safe in a 9-month CD?
Yes, your money is safe in a 9-month CD. At People Driven Credit Union, our CDs are insured by the NCUA (National Credit Union Administration) up to $250,000 per depositor.
Continue ReadingWhat’s the difference between dividend/interest rate and APY?
When comparing savings accounts, money market accounts, certificates, and other deposit products, you may see both a dividend rate and an Annual Percentage Yield (APY). These numbers are related, but they are not the same. The dividend rate is the base rate used to calculate your earnings. APY shows how much you could earn over a year when the effect ...
Continue ReadingHow does a 9 month cd work?
A 9-month CD works as follows: Opening the CD: You deposit a lump sum of money into the CD account. The amount often needs to meet the bank or credit union’s minimum deposit requirement. Fixed Term: The money is committed to the CD for a fixed term of nine months. During this period, you cannot add to or withdraw from ...
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