Retirement Savings,Personal Finance Planning


The VT Certificates of Deposit Accounts (CD Accounts) program provides the security of the Federal Deposit Insurance Corporation (FDIC) and a fixed interest rate.

One, three and five-year CD Accounts are issued by Bank of America, N.A. (Bank), a member of FDIC, and are available as VantageTrust investment options. CD Account deposits of up to $250,000 are insured by the FDIC, subject to certain limitations. Interest is credited to CD Account balances daily and compounded monthly. Withdrawals prior to the stated maturity date will reduce the annual percentage yield and are generally subject to an early withdrawal penalty. At maturity, interest will cease to accrue and the entire principal amount and all accrued interest will be invested in the maturity fund selected by the Plan sponsor.

Amounts to be invested in CD Accounts are initially held in the Bank’s Money Market Deposit Account (MMDA), until the open investment window closes, typically on the second to last business day of the month. Assets held in the MMDA will earn the Bank’s MMDA rate and cannot be withdrawn until after the assets have been invested in the CD Account. At that time early withdrawal penalties could apply.

Please note that direct transfers from the VT PLUS Fund (and other stable value funds) to CD Accounts are prohibited. Please see the “PLUS Fund Restrictions on Transfers to Competing Funds” section of Making Sound Investment Decisions: A Retirement Investment Guide for more information.

CD Accounts are not available in all plans. ICMA-RC reserves the right to establish a minimum initial deposit in the future, limit the maximum amount that can be invested on a monthly basis, and/or discontinue making CD Accounts available, and/or begin offering CD Accounts for other maturities at any time.

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