CDs & IRAs

Certificates of Deposit

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Want to earn better interest without putting your savings at risk? A safe, secure First Kentucky Bank Certificate of Deposit is FDIC-insured and serves as a steady alternative to volatile investments. With terms from seven days to five years, our CDs can help you reach whatever savings goals you have in mind.

With many CDs to choose from, you may want to talk to us to see which is right for you. At First Kentucky Bank, we offer CDs on your terms.

• Open with a deposit of as little as $500.
• Earn competitive interest rates with terms ranging from seven days to five years.
• Choose to have the interest you earn reinvested in your CD; have it deposited to your checking, savings, or money market account at First Kentucky Bank; or choose to receive your interest payment by check.

* Platinum Service Checking members will enjoy the Medical Needs CD benefit, which automatically waives interest penalties on early withdrawals to cover medical expenses.

Individual Retirement Accounts (IRAs)

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It's never too early — or too late — to start planning for your retirement. An IRA is a long-term savings plan that lets you build a nest egg on which you defer income taxes on earnings until you start to withdraw money at age 59 1/2 or better. This tax-deferral of earnings allows your money to effectively accumulate faster than it would if you had to pay taxes on your earnings every year. The longer the money grows, the greater the benefits of tax deferral. The IRA is an excellent investment option that may some day help you maintain your current lifestyle.

Traditional IRA

A traditional IRA is a type of retirement plan that has been in existence since 1975. Traditional IRAs offer tax-deferred earnings and the possibility for tax-deductible contributions. These tax advantages make the traditional IRA a powerful tool in creating a balanced, long-term savings plan.

• Open a Traditional IRA with a deposit of as little as $100.
• Individuals who are under age 70 1/2 and have earned income may contribute.
• No required minimum distribution until you reach age 70 1/2.
• The annual contribution limit is $5,000 for 2006 (age 50 & better).
• You can withdraw funds — IRS penalty free — from your IRA any time after you reach age 59 1/2.
• Interest on the principal accumulates on a tax-deferred basis (it isn't taxed until withdrawals begin).
• To be eligible to open an account, you must be under the age of 70 1/2 and must have earned income (or a spouse with earned income).
• Individuals may be able to deduct all or a portion of the amount contributed to an IRA from their adjusted gross income on federal tax returns. You should consult your tax advisor to determine the deductibility of your contributions.

Traditional IRA FAQ

Roth IRA

A Roth IRA is an individual retirement account created by the Taxpayer Relief Act of 1997. Named for former Senate Finance Committee Chairman William Roth, Jr., this IRA offers more incentives to boost your retirement savings, as well as more ways to use your nest egg.

• Open your Roth IRA with a minimum opening deposit of as little as $100.
• As long as you have earned income, you can establish and contribute to a Roth IRA even after age 70 1/2.
• Contributions are not generally deductible, but the Roth IRA gives investors tax-free earnings on withdrawals after five years and after having reached age 59 1/2.
• Mandatory withdrawals are not required upon reaching 70 1/2 or any other age.
• Principal may be withdrawn at any time with no IRS penalty.
• The annual contribution limit is $5,000 for 2006.

Roth IRA FAQ

* Participants can maintain both Traditional and Roth IRAs at the same time. You can even make contributions to both types of IRAs in the same year. But your contributions to both Roth and Traditional IRAs cannot exceed the maximum contribution.

** Consult your tax advisor to discuss your individual tax situation.