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IRAs

Individual Retirement Accounts — Savings & Certificates

Your future starts today. An IRA is one of the best ways you can prepare for it.

Your future starts today.

For many people, an Individual Retirement Account (IRA) is a smart way to save regularly for retirement and enjoy special tax benefits. IRAs offer the advantage of not having to pay taxes on annual investment earnings (gains, interest, or dividends) until you begin withdrawing funds from the account.

It's best to start contributing to an IRA as early in life as you can since that will allow your tax-deferred earnings to grow while you maximize the power of compounding. ALEC offers two types — savings and certificates — that allow you to choose how your money grows.

IRA Savings

No minimum purchase amount, available in Traditional, Roth and Educational IRAs. A great, fixed alternative to saving for retirement or other financial goals. A Savings IRA from ALEC is designed to help you achieve greater financial security for you and your family in your retirement years.

  • Traditional, Roth, and Educational IRAs available
  • Competitive rate
  • Earns monthly dividends based on the average daily balance
  • Dividends are automatically reinvested for maximum compounding
  • Choose an IRA where earnings grow either tax-free or tax-deferred
  • Contributions may be tax-deductible^
  • 24/7 account access via Online Banking, Mobile Banking and Telephone Banking

Already have an ALEC IRA? Manage it online.

^ Consult your tax advisor. Not intended to be tax advice.

IRA Certificates

Terms from 12 to 60 months, $500 minimum purchase, available in Traditional, Roth, and Educational IRAs. A great way to save for a rainy day while earning competitive rates. A Certificate IRA from ALEC is designed to help you achieve greater financial security for you and your family in your retirement years.

  • Traditional, Roth, and Educational IRAs available
  • Low $500 minimum requirement to open
  • Lock in a competitive rate
  • Terms from 12 to 60 months
  • Dividends are paid monthly
  • Dividends are automatically reinvested for maximum compounding
  • No service charges (except for early withdrawals)
  • Choose an IRA where earnings grow either tax-free or tax-deferred
  • Contributions may be tax-deductible^
  • 24/7 account access via Online Banking, Mobile Banking and Telephone Banking

Already have an ALEC IRA? Manage it online.

^ Consult your tax advisor. Not intended to be tax advice.

Your retirement savings are safe.

Nothing is more important to us than protecting your money. All ALEC accounts are insured up to $250,000 by American Share Insurance (ASI), the nation's largest private deposit insurer.

IRA Rates

Account TypeNominal RateAPY*
IRA Share
Roth, Traditional, Education
0.499%0.50%


Account TypeTermNominal RateAPY*
IRA Certificates #
Roth, Traditional, Education
$500 Minimum Balance
12 months1.736% 1.75%
24 months2.227% 2.25%
36 months2.472% 2.50%
48 months2.960% 3.00%
60 months3.445% 3.50%
Variable Rate IRA Certificate **
$500 Minimum Balance
24 months 4.793%4.90%
* The Annual Percentage Yield is the rate that is earned if the funds are left to compound for one year. All dividends are paid monthly based on the daily average balance. Rates subject to change monthly. The nominal rate is the rate used to calculate the monthly dividend.
# A penalty may be imposed on an early withdrawal of a Share Certificate. View our fee schedule.
** The “Index” is the 13-week Treasury Bill rate posted in the Money rates section of the Wall Street Journal on the last business day of the previous month. As of February 28, 2023, the rate is 4.75%. The rate floor is 0% APY.

Contribution Limits for Traditional / Roth IRA

YearUnder Age 50Age 50 and older
2023*$6,500$7,500
2024$7,000$8,000
*Note: you may contribute to your 2023 limit until April 15, 2024.

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