SAVINGS & CDS FAQS
What does "Annual Percentage Yield" mean?
The Annual Percentage Yield (APY) is the yearly interest percentage on interest-bearing deposit products that must be disclosed to comply with Truth in Savings regulations. It reflects the total interest to be earned based on the compounding method used by the institution. It assumes funds remain in the account for a 365-day year.
What is CDARS?
CDARS stands for Certificate of Deposit Account Registry Service. AnchorBank participates in this national service. Through this network of FDIC-insured banks we can provide full insurance on deposits well in excess of $250,000. No longer do you have to deal with the complexity of multiple bank relationships just to get the advantages of FDIC coverage. You receive the benefit of FDIC insurance eligibility on your money along with the convenience of banking in one place - AnchorBank. You also get one consolidated statement from AnchorBank for all your CDs and one year-end 1099 tax summary. Ask about our special CDARS rates and maturity periods. More details are available from any of our personal bankers, or you can e-mail us with any questions you may have.
Can I use a debit or ATM card with my savings account?
ATM cards are available with statement savings accounts. Ask about this option when you open your account.
What is the Education Savings Account?
An Education Savings Account from AnchorBank is a sensible way to save for your child's elementary, secondary and post-secondary education. Here's how it works:
- A child can receive a total of $2,000 a year from all eligible sources (parents, grandparents, etc.) until he or she reaches age 18.
- Contributions are non-deductible, but they grow tax-free when withdrawn for qualified educational expenses like tuition, fees, books, supplies and similar items.
- Rollovers to another child under 18 are allowed.
- You must satisfy the adjusted gross income (AGI) requirement of $110,000 for single tax filers or $220,000 for married couples. Phaseout of contribution limits begins at $95,000 (single) and $190,000 (married).
Click here for more information on this account.
