Our Certificates of Deposits offer guaranteed yields, flexibility, and the safety of FDIC insurance. That’s because you lock in a high yield that’s guaranteed from the day you open the account until the day it matures. You know exactly what return you’ll get and when you’ll get it.Your investment is safe because Natick Federal CDs are backed by the Federal Deposit Insurance Corporation for up to $250,000 per individual – making them as safe as any investment in the world.

Now IRAs let you save for a first home or higher education as well as for retirement. And you can realize tax advantages at the same time! Whether it’s the Traditional IRA, Roth IRA or Rollover IRA, there’s probably one that’s right for you.

Traditional IRAs
Earnings on your Traditional IRA are tax deferred until they are withdrawn. In addition, many people can also save on their present taxes by qualifying to deduct all or part of their IRA contributions from their current taxable income. The deductible amount depends on your income, marital status and whether you’re an active participant in an employer sponsored plan as defined by the Internal Revenue.

With a Traditional IRA you also defer taxes by putting them off until you retire, when you may be in a lower tax bracket. The chart below shows you how much you may be able to save each year. Please consult your tax advisor to review your particular situation on the tax-deductible status of an IRA.

Traditional IRAs require that you begin to take at least minimum distributions prior to April 1st of the year following the year you reach 70 1/2. You are permitted to withdraw funds without penalty any time after you reach age 59 1/2 or if you qualify for an exemption such as for a first-time home purchase, for qualified higher education, or if you become disabled. If you are over age 59 1/2 or taking a qualifying distribution, you simply include the taxable portion of the amount withdrawn (generally, deductible contributions and all earnings) as income. However, if you are under age 59 1/2 and do not meet one of the exceptions, you must also pay a 10 percent IRS penalty for premature distribution. The non-deductible portion of the distribution is not taxable when withdrawn, but is subject to the 10 percent premature-distribution penalty.

Roth IRAs
The Roth IRA is a nondeductible account that features tax-free withdrawals for certain distribution reasons after a five-year holding period. Since Roth IRA contributions are nondeductible and taxed in the year they are earned, people who expect to be in a higher tax bracket when they retire may benefit more from these accounts than from a Traditional IRA. In addition, unlike with the traditional IRA, the Roth IRA has no age 70 1/2 required minimum distribution, making it easier to leave the funds to accumulate for later use.

Unlike the Traditional IRA, earnings in a Roth IRA are not taxable provided you withdraw the earnings as part of a qualified distribution. After the five-year holding period, qualified tax-free distributions can be made if you have reached age 59 1/2, or are permanently disabled, for a first-time home purchase, or in the event of your death.

As with Traditional IRAs, there is a 10 percent IRS premature distribution penalty for non-qualifying withdrawals.

While qualified distributions from a Roth IRA are not subject to federal income taxes, state taxes may apply. In addition, distributions from the Roth IRA are considered to come from contributions first (as opposed to earnings) and are not subject to taxation or the 10 percent IRS premature-distribution penalty. In other words, you can always get back your principal tax-free and IRS penalty-free for any reason. Please note, however, that there may be Certificate of Deposit early withdrawal penalties depending upon the investment account you have chosen for your Roth IRA Plan.

If You’re Changing Employers, An IRA Rollover Makes Sense. If you are retiring or changing jobs and anticipate withdrawing money from your employer’s retirement plan, you can avoid withdrawal penalties by transferring your assets into an IRA or another qualified plan. You can ask your employer to arrange for a “direct rollover” of your money into a new IRA account with us, or you can do it yourself with an IRA-to-IRA rollover.

You must complete the rollover within 60 days from the date you receive the assets from your old IRA in order to qualify and not pay the mandatory 20% withholding and possibly other penalties as well. For more information about IRA Rollovers or opening a new IRA just give us a call at (508) 653-2340.

MasterMoney^TM Card

With a MasterMoney^TM card from Natick Federal Savings Bank you can make purchases at supermarkets, gas stations, restaurants and retail stores—anywhere MasterCard^TM is accepted—as well as access your funds at any NYCE or MoneyPass ATM worldwide.  Plus, there is no charge for your purchase transactions!

Phone Banking

Simply call toll-free 1-800-795-2580 and listen to the step-by-step options.

Direct Deposit

Deposit products are available to Massachusetts residents only.