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CDs & IRAs

It's a fast-paced world and instant results are often the expectation. But if you've heard the saying, "good things come to those who wait," we think you'll like these forward-looking financial strategies.

Want your money to grow? Just give it some time.

Certificate of Deposit (CD)
In life, there are very few sure things. In financial circles, there are fewer still. But a Certificate of Deposit1 is an exception. It's a savings product that features higher interest rates than most traditional savings accounts. You lock into that higher rate on day one. And when the term amount matures - six months, five years or somewhere in between - you'll have the satisfaction of a secure investment, ready to meet your financial goals.

Multi-Million Dollar FDIC Insurance Coverage

If you plan to invest a lot of money in CDs, you definitely want to know about the CDARs system. It allows you to deal exclusively with AbbyBank, but we disperse your funds over a nationwide network of qualified financial institutions so that you enjoy maximum FDIC coverage. Learn more about our CDARS program.

Start saving now so you can kick back and relax later.

Individual Retirement Accounts (IRA)
You work hard. But when retirement comes, you plan to enjoy life to the fullest. Bucket-list adventures. New hobbies and old friends. Grandkids, gardening and getting involved in the community. The best way to secure the financial freedom for your retirement dreams is to start planning well ahead of time. That's where tax-advantaged Traditional and Roth IRAs2 come in.
  • A good supplement to your 401(k) plan or company pension.
  • Contribute up to $7,000 per year ($8,000 if over age 50).3
  • With Traditional IRAs, you may be able to take a tax deduction every year you make a contribution.
  • With Roth IRAs, all qualified withdrawals are tax-free.
  • With Traditional IRAs, all interest earnings are tax-exempt until distribution.
  • With Roth IRAs, all qualified interest earnings are tax-exempt.
  • For more information on IRAs and their benefits, talk with an AbbyBank Personal Banker or your financial advisor.

Smart financial planning is a win-win for both parents and their kids.

Coverdell Education Savings (ESA)
These accounts5 are often called Education IRAs because they share some of the same great tax benefits. And that's why they're an A-plus way to save money for school tuition or higher education costs.
Find more information about Coverdells from the IRS and www.savingforcollege.com.

Saving Solutions

Discover our Savings Accounts tailored to suit your financial goals. 
Money Market Account 
Dive into the sophistication of our Money Market Account, where your funds earn competitive interest rates while maintaining easy access.

Enriching account options

Thumbs up icon illustration Most Strategic

Certificates of Deposit

A savings product where you stash your money for a set period, and in return, it grows with a fixed interest rate and guaranteed payoff when the time is right.

CD Details
Heart icon illustration Most Guaranteed

24-Month IRA Savings

A tax-advantaged retirement savings product that offers the best of both worlds - sturdy fixed rates and the freedom of additional deposits.

24-Month IRA Savings Details
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Variable Rate IRA

A tax-advantaged retirement savings product that's all about flexibility. With the flexibility of additional deposits, access to your funds at any time, and a rate that adapts like your financial journey does.

Variable Rate IRA Details
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IRA Certificate of Deposit

A savvy blend of tax-smart saving and reliable growth. Secure your financial future with a fixed interest rate while enjoying the tax advantages of an IRA.

IRA Certificate of Deposit Details
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Coverdell Education Savings (ESA)

A smart investment in your kid's future, with a tailored plan that combines financial planning and tax benefits for a brighter tomorrow.

ESA Details

Please find the necessary disclosures located at the bottom of this page.

Which type of IRA is right for you?

View a side-by-side comparison of Roth and Traditional IRAs to learn the differences. Please consult your tax advisor as to which type of IRA best fits your needs.
Roth IRA Traditional IRA
What's the same?
  • Contribution Limits - 2023: $6,500 ($7,500 age 50 and older); 2024: $7,000 ($8,000 age 50 and older)
  • Contribution Deadlines - Monday, April 15, 2024 (for the 2023 tax year)
  • Qualified withdrawals in retirement are tax free.
  • Contributions can be withdrawn at any time.
  • If tax deductible, contributions reduce taxable income in the year they are made.
  • No immediate tax benefit for contributing.
  • Ability to contribute is phased out at higher incomes.
  • Deductions may be phased out.
  • Distributions in retirement are taxed as ordinary income.
Early Withdrawal Rules
  • Contributions can be withdrawn at any time, tax- and penalty-free.
  • Unless you meet an exception, early withdrawals of earnings may be subject to a 10% penalty and income taxes.
  • Unless you meet an exception, early withdrawals of contributions and earnings are taxed and subject to a 10% penalty.

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Common Questions

The biggest difference between a CD and an IRA is the length of time you plan to have the investment. CDs are a savings tool with specific term investment options.  Penalties may apply if you break the term agreement of a CD.  IRAs are a tax incentive savings tool for working individuals with earned income and invested until retirement.

A Traditional IRA can reduce the taxable income each year a contribution is made.  A Roth IRA does not reduce the taxable income; however, it can provide tax advantages at the time of withdrawal. IRAs are a tool to supplement social security income at retirement.

Generally, a Traditional IRA is tax deductible for the tax year designated. Earnings are tax deferred until a withdrawal is made. Distributions are added as regular income. Roth IRA contributions are usually nondeductible. Interest earned is also tax deferred and can be tax free if you withdraw after age 59 ½ and have had the Roth IRA for at least five years. The Roth IRA does not have a mandatory distribution. Both types of IRAs do have specific income qualifications. Try our free Traditional and Roth IRA calculators to help you determine which one is the best fit for your needs. 

Yes, tax laws change every year. View our chart above for the most current contribution guidelines.  Withdrawals before age 59 ½ may incur an IRS early withdrawal 10% tax penalty. Traditional IRAs require an annual minimum distribution starting at age 72. Special circumstances have been established for early distribution, such as, first time home purchase, education expenses, medical expenses, health insurance after unemployment, IRS levy and death. 
Laddering your Certificates of Deposit (CDs) allows you to space out (or ladder) the maturity dates so you can have a mix of maturity dates and rates. In a low-rate environment, you may be hesitant to put all your funds in a 5-year CD just to get the highest rate. Instead, you could put some funds in a 12-month CD, some in 24 months, 36 months, 48 months, and 60 months. Then, when the 12-month CD matures, you reinvest that for 60 months so you can get the highest rate. When the 24-month CD matures, you reinvest that for 60 months for the highest rate, etc. Eventually, each year when a 60-month CD matures, you can reinvest it for another 60 months and always get the highest rate offered, yet still have some of your funds maturing each year. You can also try our free CD ladder calculator that shows you the benefits of investing in a series of Certificates of Deposit with different maturities vs. a single long-term CD. 

AbbyBank is a full-service financial institution with Wisconsin locations in Abbotsford, Appleton, Gresham, Medford, Shawano, Wausau, Weston and Withee.

1Certificates of Deposit and 24 month IRA are subject to early withdrawal penalties.
2Certain IRS restrictions apply to deposit accounts. IRA accounts cannot be a joint account. Withdrawals before age 59-1/2 may be subject to IRS penalties.
3Information accurate for 2024 tax year.
4Subject to earned income and IRS contribution limits
5ESA accounts cannot be a joint account.