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Individual Retirement Accounts (IRAs)

IRA's are a great tool to save for major events in your life, such as retirement, college expenses, or a new home. East County Schools has both share and certificates, Roth and Traditional. Stop by a branch to open an account.

IRA Share Accounts

  • Similar to a share savings account in that there is a $5.00 deposit requirement and additions to the principal can be made at any time, up to the maximum contribution allowed, per year by law
  • You can contribute up to $5,500 per year plus an additional $1,000 catch up if you are 50 or older, for 2018
  • Dividends are calculated daily and paid monthly
  • No East County Schools FCU penalties for early withdrawal. The Internal Revenue Service does impose penalties for withdrawals prior to age 59½.

IRA Share Certificates of Deposits (CDs)

  • 3 months to 60 months certificates are available
  • Minimum purchase amounts of $1,000 or any amount above this minimum
  • "Maturity sensitive," generally paying higher Dividend Rates for those with longer maturities
  • Certificates automatically renew at maturity unless you indicate otherwise
  • East County Schools FCU imposes penalties for early withdrawals
    • Terms of up to one year – 30 days of dividends or $25.00, whichever is less
    • Terms of greater than one year – 90 days of dividends

All Individual Retirement Accounts are insured to $250,000 by the NCUA (National Credit Union Administration) separately from any other share accounts you may have with East County Schools Federal Credit Union.


Compare Individual Retirement Accounts

DescriptionTraditional IRARoth IRA
Adjusted Gross Income Eligibility RestrictionsAlmost everyone with earned income may participateIndividuals earning $ 95,000 or less
Married couples earning $150,000 or less
Maximum Annual Contribution$5,500
(if under age 50)
(if over age 50)
(if under age 50)
(if over age 50)
Non-wage Earning Spousal Contribution$5,500
(if under age 50)
(if over age 50)
(if under age 50)
(if over age 50)
Tax Deductibility of ContributionsUp to 100% depending on Annual Gross Income and participation in an employer-sponsored retirement plan.Cannot deduct
Tax treatment of dividend earningsGrow tax-deferred until withdrawnGrow tax-free
Taxes Upon WithdrawalWithdrawals of contributions and dividend earnings are taxed as ordinary income at the then current tax bracketNone
Withdrawal RestrictionsCurrently, most withdrawals before age 59½ result in IRS penalties. Some exceptions are made for catastrophic medical expenses or disability. The new law allows for early penalty-free withdrawal for first-time home purchases and/or college expenses.IRS penalty-free withdrawal after age 59½, so long as the money has been in the account for five years. Penalty-free and tax-free withdrawals prior to age 59½ if the funds are used for disability or first-time home purchase. The five-year-in-the-account rule applies.
Age at which withdrawals must begin70½None

(Does not imply that $5,000 or $6,000 can be contributed to both IRA types. A maximum of $5,000 or $6,000 can be contributed to one or the other -or- split between both.)

Traditional IRAs

  • Maximum annual contribution is $5,500 if under age 50 or $6,500 if over age 50, or 100% of your earned income, whichever is less, for 2018
  • IRS penalty-free withdrawals are allowed prior to age 59½ when the funds are used for first-time home purchases (up to a lifetime limit of $10,000) and/or higher education expenses.

Roth IRAs

  • The Roth IRA, like the Traditional IRA, has a maximum annual contribution limit of $5,500 if under age 50 or $6,500 if over age 50 from earned income, for 2018.
  • Contributions to a Roth IRA are not tax-deductible.
  • Your eligibility to contribute to a Roth IRA is not dependent on whether you are covered by a retirement plan at work.
  • Dividends grow tax-free.
  • Withdrawals of both contributions and earned dividends are tax-free after age 59½, as long as the money has been in the account for five years.
  • Tax-free distributions from the Roth IRA are permitted prior to age 59½ for disability and/or first-time home purchases (up to a lifetime limit of $10,000), as long as the money has been in the account for five years.
  • Unlike Traditional IRAs, the Roth IRA allows you to make contributions after the age of 70½.
  • The Roth IRA does not require mandatory minimum distributions once you reach age 70½.
  • Converting Traditional IRAs to a Roth IRA:
    1. You can convert your Traditional IRAs to a Roth IRA, using special rules developed by the IRS.
    2. The transferred amount is subject to income tax, but is exempt from IRS early withdrawal penalties.

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Members LoveECSFCU!

  • Todd Linke IMG_4888 no wording cropped
    After financing a newly purchased truck with ECS, Todd wrote: Thank you for your efficient and friendly service! I always appreciate the "small bank" customer service, but the "big bank" options!
    Todd Linke, Mount Miguel HS Science Department
  • Karl Danielson 2018
    I've bought three cars through the credit union. They make it very easy, very simple, and you can't beat the interest rate. I highly endorse them, their friendly staff, and the service that East County Schools gives its members!
    Karl Danielson Granite Hills HS Television, Film and Digital Media Teacher
  • ECSFCU is big enough to approve loans with great rates and small enough to provide personal service and products that are important to the educational community.
    Randy Montesanto Grossmont Union High School District
  • We bank with East County Schools Federal Credit Union and learned they also have a great car buying service! We decided to look into it and ended up with the best customer service, an amazing price, no hassle of going to the dealership, and a brand new 2017 Honda Accord Sport! A year later, we were in need of another car for our growing family. It was an easy decision to go with the credit union and New Cars Inc again. The process and customer service didn’t disappoint once again, and we love our new 2018 Honda CRV! A big thank you to New Cars Inc and ECSFCU!
    Carly and Luke Esquerra