SRP Federal Credit Union

Our Savings Programs

Share Savings Account

When you open a savings account with SRP Federal Credit Union, you become a shareholder and owner of the credit union. The $25.00 deposit required to open this account buys your share. That's why we refer to your savings account as a share account. It represents your share of the credit union. You are now part owner, and a member of SRP Federal Credit Union. Your share account earns monthly dividends with no minimum balance (except your $25.00 share).

Christmas Club

Relieve holiday stress with a Christmas Club Account. Open the savings account with as little or as much as you choose. Make deposits in person, through payroll deduction, by automatic transfer, or through PC TYME. Your money will earn dividends from the date of deposit. Then, during the first week of November, you'll receive your nest egg just in the St. Nick of time. You can have your money automatically transferred into your account or have it mailed, the choice is yours.

Individual Retirement
Account (IRA)/
Coverdell Educational
Custodial Account (ESA)

An IRA allows you to save a portion of your earnings during your working years for use during your retirement. An IRA is similar to regular savings; however, dividends earned are exempt from federal and state income taxes until withdrawn. Participation in this program is subject to rules and guidelines as enacted by Federal Legislation. SRP Federal Credit Union offers a variety of IRAs including: Traditional, Roth, and Coverdell Education Custodial Accounts(ESA). We offer competitive dividend rates with no maintenance or set-up fees.

Traditional IRA

Our traditional IRA shares and share certificates offer members a tried and true way of saving for their retirement. These accounts may allow you to deduct all or part of your annual contributions at tax time, depending on your individual circumstances (see tax advisor). These IRA gains are not usually taxed until you begin to take distribution at age 70.5.

Roth IRA

We offer Roth IRA shares and share certificates. This type of Individual Retirement Account (IRA) gives members the opportunity to set aside funds for retirement or for future spending needs. The Roth gives members the opportunity to withdraw money without penalty or taxes.
Example:
If you put $1,000.00 a year into a Roth IRA and after four years had $4,700.00 you could take out your original contribution ($4,000.00) without any penalty. The $700.00 you earned must stay in at least five years and until you are 59.5 before you can withdraw without penalty.

Coverdell ESA

Why open a Coverdell ESA? Unlike Traditional and Roth IRAs, ESAs are not tools for retirement savings. They are designed solely to help pay qualified education expenses. Nondeductible contributions up to $2,000.00 may be made to each child's account annually. Withdrawals used to pay for qualified education expenses are generally tax-free and not subject to a 10% IRS penalty for early withdrawal.

As always, it is best to consult with your tax advisor to determine which IRA or ESA option is best for you.

Savings Bonds

The series EE Bond is an appreciation-type security that has an original maturity date of 17 years and an interest-bearing life of 30 years. When you purchase a U.S. Savings bond, you are lending money to the U.S. Government with the understanding you will be paid back the full face value (which includes purchase price plus interest) on maturity. Minimum redemption time is six months from issue date (value is purchase price plus six months interest). US Savings Bonds help people save and achieve future goals. There are possible benefits for tax deferment, education, and retirement. U.S. Savings Bonds benefit the U.S. Government while helping people save in a virtually risk-free investment.

These bonds require that an application be filled out and returned to the credit union. Contact a member service representative or visit your local branch for a Savings Bond form.

Share Certificates

SRP Federal Credit Union offers share certificates at competitive dividend rates. This account requires a minimum deposit of $500.00, requires funds to remain on deposit for seven days or more, and carries a penalty for early withdrawal.