© 2013 PlainsCapital Bank | Member FDIC | Equal Housing Lender 1 Jennifer Ramon SVP, Product...

© 2013 PlainsCapital Bank | Member FDIC | Equal Housing Lender

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Jennifer Ramon

SVP, Product Development and Review

PlainsCapital Bank

Making Cents of Savings


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• Emergency fund• Big purchase• Retirement• Education• Grow idle funds

Why Save?


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• How often will you need access to funds?• How will you access funds?• What is your risk tolerance?• What is your ultimate savings goal?

Consider Your Objectives


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• Personal Savings Accounts• Money Market Deposit Accounts• Certificates of Deposit• Individual Retirement Accounts• Coverdell Education Savings Accounts• Brokerage Accounts

Savings Options


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A good option for an emergency fund, where you’ll need only occasional access to funds and rate is not a top priority

Personal Savings Accounts

Benefits Limitations

• Minimal balance requirement• Nominal rate of interest• Unlimited deposits• Unlimited withdrawals at ATMs

and teller lines• FDIC-insured or NCUA-insured

• No check-writing• Limited by Federal Regulation

D (“Reg D”) to six pre-authorized withdrawals or transfers per statement cycle

• Excess transactions may result in fees or account closure

• Interest earned in excess of $10 per year is taxable income


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Offer more convenient access to funds and often higher interest

Money Market Deposit Accounts


• Typically higher and often tiered rates of interest

• Unlimited deposits• Unlimited withdrawals at ATMs

and teller lines• Limited check-writing permitted• FDIC-insured or NCUA-insured

• Often higher balance requirements than savings

• Limited by Reg D to six pre-authorized withdrawals or transfers per month, no more than three of which may be by check, point-of-sale or ACH

• Excess transactions may result in fees or account closure

• Interest earned in excess of $10 per year is taxable income


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An insured option with fixed terms and fixed or variable rates

Certificates of Deposit (CDs)


• Offered in many fixed terms• Fixed or variable rates• Typically pay higher rates of

interest for longer terms• Banks may occasionally offer

“specials” with premium rates• May offer special features, such

as a “bump” or “step up” in rate• May be renewed at maturity at

prevailing rates• FDIC-insured or NCUA-insured

• Generally higher opening balance requirement

• Not intended for transactions• Withdrawals before maturity

usually subject to penalties• Interest earned in excess of $10

per year is taxable income


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Tax-advantaged, secure option for retirement savings

Traditional Individual Retirement Account (IRA) CD


• Offered in many fixed terms• Typically pay higher rates of

interest for longer terms• Contributions may be tax-

deductible• Earnings grow tax-free until

distributed • May accept roll-over funds from

other retirement plans• FDIC-insured or NCUA-insured

• Federal limitations on eligibility and maximum contributions

• Required distributions begin at age 70½

• Distributions subject to taxes

Please consult your tax professional for tax rules.


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Tax-advantaged, secure and flexible retirement savings option

Roth IRA CD


• Offered in many fixed terms• Typically pay higher rates of

interest for longer terms• Earnings are tax- and penalty-

free after five years when funds withdrawn for a qualified reason (age 59½, first-time home purchase, death/disability)

• No required distributions at 70½ • May accept roll-over funds from

other retirement plans• FDIC-insured or NCUA-insured

• Contributions are made with after-tax dollars




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Tax-advantaged, secure option for education savings

Coverdell Education Savings Accounts (CESAs)


• Generally low opening balance• Typically pay higher rates of

interest for longer terms• Earnings grow tax-free until

distributed• Distributions are tax-free if used

for qualified education expenses• When beneficiary turns 30,

unused funds may be rolled into a CESA for a family member

• FDIC-insured or NCUA-insured

• Contributions are not tax-deductible

• Contributions may be made until the beneficiary is 18


• When beneficiary turns 30, unused funds must be distributed within 30 days and earnings are subject to taxes



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Many investment options with potential for high growth

Brokerage Accounts


• Many options available, including stocks, bonds and mutual funds

• Potential for higher returns based on performance

• Option to use a full-service brokerage house with investment advisors or discount brokerage services online

• Not FDIC- or NCUA-insured• Subject to market risk and

fluctuations• Earnings subject to taxes



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Jennifer Ramon

SVP, Product Development and Review

PlainsCapital Bank

214.252.4066

[email protected]

www.plainscapital.com

Thank You

© 2013 PlainsCapital Bank | Member FDIC | Equal Housing Lender 1 Jennifer Ramon SVP, Product...

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