Annuities
Annuities are designed as principal preserving, long term investments, which
can provide funds for retirement. We offer both a non-qualified annuity and
qualified Traditional and ROTH IRA annuities. Our no-load annuities are tax-deferred
(funds are taxable only at the time of withdrawal), and they carry a five year
penalty period, amongst the lowest in the industry.
| Annual Yield on FCSLA Annuities/IRAs
From April 1 through and including June 30, 2008, all Annuities/IRAs
will pay a yield of 4.6025%, based on a 4.5% rate of interest compounded
daily. Members choosing the interest only option will earn 4.6025% (APR
4.50%), while those selecting a settlement option during this period
will earn a yield of 4.6025% (APR 4.5%).
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Flexible Premium Deferred Annuity
- Annuitant accumulates
funds with interest which is compounded daily. Ongoing deposits are permitted,
and may be made via Electronic Funds Transfer (EFT).
- Minimum deposit
is $25.00.
- Our competitive interest rates are reviewed by the Board
of Directors on a quarterly basis. Rates may be adjusted, but will never
go below the guaranteed minimum rate established by the annuity contract.
- Prior
to settlement, annuitant may withdraw all or part of the accumulated funds,
subject to the Association's Early Withdrawal Penalty.*
- During
the first five years, free withdrawal of up to 10% of the current account
value is permitted once per contract year. Additional withdrawals are subject
to an Early Withdrawal Penalty, which is 5% the 1st year, and decreases by
1% each subsequent year.*
- At any age, the annuitant may receive
interest only payments, or select a type of periodic payment offered by the
Association.*
- If annuitant dies prior to settlement, funds on deposit
are payable directly to the named beneficiary(ies).
* Since annuities are considered retirement accounts, withdrawals taken prior
to age 59-1/2 may be subject to 10% Early Withdrawal Penalty by the IRS.
Single Premium Immediate Annuity
- Uses annuitant's initial large
premium deposit as the basis for immediate contracted settlement payments.
- Annuitant
is "locked in" to the settlement option, payment
amount, payment scheduled selected, and rate in effect for settlements at
time of commencement.
- Scheduled payments may be sent directly to
annuitant's bank
account via Electronic Funds Transfer (EFT).
- Minimum deposit is $2,000.00.
- Generally, if annuitant dies prior
to receiving all guaranteed payments, the remaining present value of such
guaranteed payments is payable to the named beneficiary(ies).
For more information about these financial
products, please use our interactive contact form.
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