CD / IRA / Higher Learning Fund

Certificates of Deposit

Individual Retirement Accounts

Higher Learning Fund

Certificates of Deposit


Certificate Term Minimum Opening Deposit 
60 Month CD $1,000.00
48 Month CD $1,000.00
36 Month CD $1,000.00
24 Month CD $1,000.00
12 Month CD $1,000.00


Balances shown above are the minimum balances required to obtain the  Annual Percentage Yield. The Annual Percentage Yield assumes that interest remains on deposit until maturity. Interest will be compounded quarterly and credited quarterly. A withdrawal of interest will reduce earnings. A PENALTY may be imposed for early withdrawal. For current rate information call (641) 444-3226 or X-Press Banking (641)444-4204.


Interest begins to accrue on the business day you deposit any non-cash item (for example, a check). The Early Withdrawal Penalty will be in the amount equal to:

  • ** One (1) months' interest on the amount withdrawn for a time certificate with a term of ONE (1) YEAR or LESS.
  • ** Three (3) months' interest on the amount withdrawn for a time certificate with a term of MORE THAN ONE (1) YEAR.


For the SPECIAL 60 MONTH CD, we will pay the original rate until maturity or upon owner's request for a one-time interest rate upgrade. The early withdrawal penalty will be calculated using the rate in effect at the time of the withdrawal.

We use the daily balance method to calculate the interest on this account. This method applies a daily periodic rate to the principal in the account each day.

If not notified within the TEN (10) Day grace period AFTER the maturity date, the certificate will automatically renew for the same term as the original certificate, beginning on the maturity date. No additional deposits may be made to these accounts during the term other than credited interest.



Individual Retirement Accounts (IRA's)


Tax Year Standard Limit Catch-up (over 50) Total Contribution (over 50)
2015 $5,500 $1,000 $6,500
2016 $5,500 $1,000 $6,500



The Taxpayer Relief Act of 1997 created Roth IRAs which are nondeductible accounts that feature tax-free withdrawals for certain distribution reasons after a five-year holding period. 

Not all individuals will qualify to contribute to a Roth IRA.  In order to contribute to a Roth IRA, an individual must meet certain eligibility requirements.  Regular, spousal, rollover, transfer, recharacterization, and conversion contributions can be made to a Roth IRA.



In 1974, the Congress established traditional IRAs to encourage individuals to save money for their retirement.  The benefits of investing in a traditional IRA include tax-deferred earnings and, for many people tax deductibility. 

To make a traditional IRA contribution, an individual must meet certain age and compensation requirements.  Individuals can make regular, spousal, simplified employee pension (SEP) plan, rollover, direct rollover, recharacterization, and transfer contributions to their traditional IRAs.

 Simple IRA Plans:

Tax Year Standard Limit Catch-up (over 50) Total Contribution (over 50)
2015 $12,500 $3,000 $15,500
2016 $12,500 $3,000 $15,500


The Small Business Job Protection Act of 1996 created the Savings Incentive Match Plan for Employees of Small Employers (SIMPLE).  The employer can adopt a SIMPLE as either a modified 401(k) plan or as a unique plan that uses special SIMPLE IRAs to accept contributions.  A SIMPLE IRA plan is an employee salary deferral plan that requires a limited employer contribution.  Although it is like a 401(k) in operation, it is easier because it does not require special discrimination testing or complicated reporting.


Simplified Employee Pension (SEP)

A simplified employee pension (SEP) plan is a business retirement plan that uses traditional individual retirement accounts (IRAs) as the investment vehicle.  The employer contributes money to their employees’ traditional IRAs (sometimes called SEP IRAs).  The employer gets a tax deduction, and the contribution is not taxable income to the employee until they take a distribution from the IRA.

The employer is responsible for ensuring that the plan is established and administered in a proper manner, in order for the plan to maintain its tax-deferred status.



Higher Learning Fund


Now you can be ready for college when your kids are-

The Higher Learning Fund from First State Bank

Earn one of the highest rates available through our bank and be ready for your child's educational needs after high school with the new Higher Learning Fund from First State Bank.

The Higher Learning Fund is a savings plan that helps save for the future educational needs of children. The account earns a high rate of return while requiring only a small initial deposit of a minimum of $100.00.

Thereafter, you decide how much to contribute, and how often. Make contributions by transfer from your savings or checking account, or stop by the bank to make deposits in person.

It will mature when your child graduates from high school.

The Higher Learning Fund is a long-term savings account created under the Uniform Transfer To Minors Act. The account is set up in the name of the child. As custodian you can make non-taxable contributions to the fund, while the taxability of the interest earnings flows to the child.

With the cost of college tuition and expenses rising each year, there's no better time than now to start a Higher Learning Fund for your child's future.

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We offer Traditional and Roth IRA Accounts as well as SEP and Simple IRA Plans!