Savings Accounts
Saving for today and tomorrow
Savings Accounts that help you plan for the future safely and securely. That is what you’ll find at Naugatuck Savings Bank. With a wide array of savings accounts, we make it easy to choose what’s right for you. Whether you need the flexibility of a Statement Savings or the security of a Certificate of Deposit (CD), we will help your money grow.
Statement Savings
Get the easy access of a statement account that can be linked to your Naugatuck Savings Bank checking account so you can see both accounts on one convenient statement.
- Earn a variable rate of interest.
- Free Direct Deposit
- Free Bank-by-Phone
- Free Online Banking
- Free ATM Card
- Free eStatements
Passbook Savings
If you like the convenience of having all of your transactions recorded in a passbook, then a Passbook Savings account is for you.
- Earn a variable rate of interest.
- Free Bank-by-Phone
- Free Direct Deposit
Ka-Ching! Savings Account Program
Isn’t it time your bank pays you? If you like to get paid for shopping, then the Ka-Ching! Savings Account from Naugatuck Savings Bank is just the account for you.
Here’s how it works:
Open a Naugatuck Savings Bank personal checking account with a Visa® Check Card and sign up for Ka-Ching! Every time you use your Visa Check Card to make a purchase of more than $50, we’ll pay you the amount of the cents in your transaction¹ by making a deposit of our money into your Ka-Ching! Savings Account. For example, if your purchase totals $50.88, we’ll deposit $.88 of our money into your Ka-Ching! Savings Account. That’s right. We’ll help you save by paying you to go shopping. What could be better than that? You don’t even have to think about saving, we do it for you!
Already have a Naugatuck Savings Bank Personal Checking account? Enroll in Ka-Ching! now.
Certificate of Deposit (CD) Accounts
If you want the security of earning a higher interest rate for a defined term and don’t want the volatility of an investment account, then a Certificate of Deposit (CD) Account is right for you. With terms ranging from 3 to 60 months, you can choose the term that works best for you. Earn a competitive rate of interest for the entire term on balances starting as low as $500. Interest is compounded and credited monthly and your interest is available for withdrawal prior to maturity.
Club Accounts
Save for holiday shopping or upcoming vacations. Deposit funds automatically from your checking account or stop into a branch office. With a Holiday Club Account, you’ll receive a check for the entire account balance in October, just in time for your holiday shopping. Vacation Club checks are mailed in June.
CDARS®
For those customers who have balances exceeding the FDIC insurance limits, Naugatuck Savings Bank, as a member of the CDARS® network of banks, can help insure that all of your deposited funds are covered by the safety and security of FDIC insurance.
What is CDARS?
CDARS is the Certificate of Deposit Account Registry Service. It is the easiest and most convenient way to enjoy full FDIC insurance coverage on deposit amounts in excess of FDIC limits. Your entire transaction is handled through Naugatuck Savings Bank. Your large deposit is broken into smaller amounts and placed with other banks that are also members of a special network. Then, those member banks issue CDs in smaller amounts under the FDIC limits so that your entire investment is FDIC insured.
How does it work?
You enter into one agreement. You sign one simple Deposit Placement Agreement with Naugatuck Savings Bank.
You select an interest rate and a maturity. Based on our current CD terms, you decide on a rate and a maturity that best suits your investment goals.
Funds are deposited. Using CDARS, we submit your funds for placement at member banks.
CDs are issued. Member banks issue CDs in denominations under FDIC limits so your entire investment is eligible for full FDIC insurance coverage.
Confirmation is received. You receive written confirmation of your deposits and a listing of all of your CDs.
We’ll take care of everything for you and you’ll receive one rate on your entire investment and one statement reflecting your account activity.
Health Savings Account (HSA)
A Health Savings Account (HSA) is a special tax-advantaged savings account that is designed to cover current and future medical expenses for individuals and families covered by a high-deductible medical plan.
An HSA is an interest-bearing account with:
- No set up fees
- No transaction fees
- No monthly or annual fees
- Free Direct Deposit
- Free Bank-by-Phone
- Free Online Banking
- Free Visa® HSA Check Card
Our competitive interest rates pay you more interest as the balance in your account increases.
Traditional Individual Retirement Accounts (IRAs)
Offered as a Certificate of Deposit (CD) Account with terms ranging from 3 months to 60 months, your investment grows tax-deferred until withdrawn. You may be eligible to contribute to this IRA if you are under age 70 ½ for the entire tax year and you or your spouse have earned income from employment. The contributions are tax-free until they are withdrawn and contributions may be tax deductible.²
Roth IRAs
A Roth IRA provides you the ability to:
- invest your after-tax dollars today
- let the investment grow tax-deferred
- take qualified distributions from your Roth IRA tax and penalty free³
For younger investors, that means a small initial investment can increase over the years into a hefty sum by retirement age. While you may take distributions from your Roth IRA at any time, distributions that are not qualified may be subject to taxes.
While a traditional IRA requires distributions beginning at age 70 ½, there are no required distributions with a Roth IRA. You may keep the funds in a Roth IRA intact indefinitely. This way you can choose to preserve your estate and pass your Roth IRA funds to your beneficiaries or take qualified distributions when needed.
In 2010, regardless of how much income you earn or your tax filing status, you can convert your traditional IRA to a Roth IRA. The previous income limitations that stood in the way for conversion no longer apply. And now, just for 2010 conversions, you may split the tax liability over a two year period.
Coverdell Education Savings
A Coverdell Education Savings Account may be a great, tax-advantaged way to save for a child’s future. It allows tax and penalty-free earnings when the money is used to pay for qualified primary, secondary, and higher education expenses.4 And you don’t have to be the child’s parent to contribute to the account – grandparents, aunts, uncles, and friends may contribute as well. You can contribute up to $2,000 per year for each child under 18. Full contributions to the account are allowed apart from contributions to a Traditional IRA, Roth IRA or employer sponsored retirement plan.
¹ Sign for the transaction or select credit. Naugatuck Savings Bank deposited funds
will be reported as income on IRS Form 1099 Misc.
² Ask your tax advisor for more details.
³There is a single, 5 year holding period when determining whether earnings can be withdrawn federally tax-free as part of a qualified distribution from a Roth IRA. This period begins January 1 of the year of the first contribution to any Roth IRA account.
4Qualified Coverdell Education Savings Account distributions are not subject to state and local taxation in most states. Earnings accumulate tax and penalty-free as long as the assets are used to pay qualified education expenses and are withdrawn before the child turns 30.