Alaska Pacific Bank: Making Dreams Come True.

We offer a variety of investment accounts to choose from. We would be happy to help you select the accounts best suited to your situation. Or, take a minute and review our great options.

Our Personal Investment Options

An Overview of Our Accounts

Money Market Accounts

Money Market
Preference Money Market

Variable-rate Certificate of Deposit (CD)

Accounts with Both Savings and CD Investment Options

Coverdell Education Savings Account (ESA)
Individual Retirement Account (IRA)
- Traditional IRA
- Roth IRA

Please see Savings Accounts for other account options.

Money Market Accounts

We offer two investment accounts that feature tiered interest rates and limited check writing privileges.

Money Market Account

The Money Market account is perfect for those who are just starting to build a savings plan and want some added flexibility.

Benefits

•	Limited check access on your investment funds.
•	Tiered interest so you earn more as your balance grows.

Money Market Features

•	Minimum to open: $100.
•	Limited to six transfers each month, three of which may be checks or other payments to third parties, $1.00 per withdrawal thereafter; regulatory restrictions apply.
•	Free ATM/VISA® Check Card (We don’t charge you a fee for using any ATM, but if you use a non- Alaska Pacific Bank ATM, you may be charged a fee by that ATM provider.)
•	Manage your account with our Free Online Banking service

Interest Information

•

Interest rates are tiered based on the daily balance.

•

Interest is calculated using the daily balance method and is compounded monthly.

•

The interest rate and annual percentage yield (APY) are subject to change at any time without notice.

•

Fees could reduce the earnings on the account.

•

Money Market Daily Balance	Interest Rate *	Annual Percentage Yield *
Below $499.99	0.10%	0.10%
$500 to $2,499.99	0.15%	0.15%
$2,500 to $9,999.99	.75%	.75%
$10,000 to $24,999.99	.90%	.90%
$25,000 or more	1.09%	1.10%

Fees

•	$5.00 monthly service fee (waived if $500 minimum daily balance is maintained).
•	A $1.00 excess withdrawal fee may apply.
•	Local sales tax may apply to any fees.

Preference Money Market

The Preference Money Market account benefits investors with higher accumulated savings, and is generally recommended if you keep $25,000 or more in your account on a regular basis.

Benefits

•	Limited check access on your investment funds.
•	Tiered interest so you earn more as your balance grows.
•	The opportunity to earn a higher annual percentage yield on balances of more than $25,000.

Preference Money Market Features

•	Minimum deposit to open: $100.
•	Limited to six transfers/withdrawals each month, three of which may be check or other type of payment to third parties. Regulatory restrictions apply.
•	Free ATM/VISA® Check Card (We don’t generally charge you a fee for accessing ATMs, but please refer to our “Service Fee Schedule” or our web site for current information.)
•	Can access your account with free Online Banking service.

Interest Information

•

Interest rates are tiered based on the daily balance.

•

Interest is calculated using the daily balance method and is compounded monthly.

•

The interest rate and annual percentage yield (APY) are subject to change at any time without notice.

•

Fees could reduce the earnings on the account.

•

Preference Money Market Daily Balance	Interest Rate *	Annual Percentage Yield *
Below $10,000.00	0.15%	0.15%
$10,000 to $24,999.99	.50%	.50%
$25,000 to $49,999.99	1.79%	1.80%
$50,000 to $99,999.99	2.08%	2.10%
$100,000 to $499,999	2.18%	2.20%
$500,000 or more	2.37%	2.40%

Fees

•	$5.00 monthly service fee (waived if $500 minimum daily balance maintained).
•	A $1.00 excess withdrawal fee may apply.
•	Local sales tax may apply to any fees.

Fixed-rate Certificates of Deposit (CD)

If you are able to commit funds for a specified period of time, you can enjoy insured savings, up to FDIC limits, at attractive rates.

Regular Fixed-rate CD:

Benefits

•	Earn a higher rate of interest than is available on savings accounts.
•	Pick your term to match your investment goals.

Fixed-rate CD Features

•	Minimum deposit to open: $2,000.
•	Terms are available from seven days to five years.
•	Early withdrawal penalties may apply if funds are withdrawn prior to maturity; fees may reduce earnings on the account.

Interest Information

•	The daily balance method is used to calculate interest.
•	For terms over one year, interest is compounded and credited annually (on December 31st) and at maturity; for terms less than one year, interest is compounded and credited at maturity.
•	The interest rate/annual percentage yield (APY) in effect at the time the CD is opened is guaranteed through the maturity date.

Regular Fixed-rate CD Terms

•

Fixed-rate CD Terms	Interest Rate *	Annual Percentage Yield *
7 to 31 Days	1.69%	1.70%
32 to 59 Days	1.88%	1.90%
60 to 89 Days	2.13%	2.15%
90 to 179 Days	2.28%	2.30%
180 to 269 Days	2.39%	2.40%
270 to 364 Days	2.44%	2.45%
1 Year	2.50%	2.50%
1.5 Years	2.59%	2.60%
2 Years	2.65%	2.65%
3 Years	2.75%	2.75%
4 Years	3.20%	3.20%
5 Years	3.30%	3.30%

Fees

•	There are no account or set up fees; early withdrawal penalties may apply, which may be subject to local sales tax.

Gold Minor Educational CD

This CD is our most popular vehicle for investing Education Savings Account funds. It is a flexible, high-yielding, fixed-rate investment account, specially designed for education savings.

Benefits

•	Gives you a way to easily save for your child’s education.
•	Ability to continue to make deposits, while earning CD rates.
•	Earn a higher rate of interest than is available on savings accounts.

Gold Minor CD Features

•	Child must be under 18 years of age at account opening; can continue to make deposits and withdrawals after age 18, but eligibility for this account ends at 23rd birthday.
•	Minimum to open: $500.
•	Unlimited additional deposits can be made at any time, and in any increment, up to age 23.
•	Early withdrawal penalties may apply if funds are withdrawn prior to maturity; penalty may be waived if funds used for educational purposes; fees could reduce the earnings on the account.
•	Funds invested in a Coverdell Education Savings Account can be invested in this account.

Interest Information

•	The interest rate/annual percentage yield (APY) in effect at the time the CD is opened is guaranteed through the maturity date.
•	Interest is calculated using the daily balance method.
•	Interest is compounded and credited semi-annually (on June 30 and December 31) and at maturity.

Gold Minor CD Terms

•

Gold Minor CD Terms	Interest Rate *	Annual Percentage Yield *
One Year	2.73%	2.75%

Fees

•	There are no account or set up fees, but there may be a penalty for early withdrawal penalty.

Special-rate CDs

From time to time, we offer Special-rate CDs. These CDs may have different opening deposit amounts and terms, and they are usually only available for a limited time. Check on our web site under “What’s New,” or ask our new accounts staff about current special offers.

Jumbo CDs

If you have more than $100,000 to invest, please contact us about a Jumbo CD. Depending on the amount of the CD and the term, we may be able to negotiate a special rate.

CDs Through CDARS®

Certificate of Deposit Account Registry Service®
These CDs are available to customers who want full FDIC insurance on deposits larger than $100,000.

How it works: your CD investment is split up into smaller CDs (each is less than $100,000) and placed with other banks that are members of this special CD network. This ensures that all of your CD funds are eligible for FDIC insurance.
You earn one rate on your whole investment. And, you’ll like the fact that you only receive one statement for the total investment, keeping paperwork to a minimum.
Since we don’t share your personal information with member banks (it all resides with us), your confidentiality is protected.
Please contact us for details and to determine if this option would benefit you.

*CDARS and Certificate of Deposit Account Registry Service are service marks of Promontory Interfinancial Network, LLC.

Variable-rate Certificate of Deposit (CD)

Benefits

•	Ability to make additional deposits and earn CD rates.
•	Earn a higher rate of interest than is available on savings accounts.

Variable-rate CD Features

•	Minimum deposit to open: $2,000.
•	Terms available: one year and 2 ½ years.
•	Unlimited additional deposits may be made at anytime, in any increment.
•	Early withdrawal penalties may apply if funds are withdrawn prior to maturity, which may reduce earnings on the account.

Interest Information

•	Interest is calculated using the daily balance method.
•	Interest is compounded and credited semi-annually (at June 30 and December 31) and at maturity.
•	The interest rate and annual percentage yield (APY) are subject to change at any time without notice.

Variable-rate CD Terms

•

Variable-rate CD Terms	Interest Rate *	Annual Percentage Yield *
1 Yr. Variable Rate	2.24%	2.25%
2.5 Yr. Variable Rate	2.39%	2.40%

Accounts with Both Savings and CD Investment Options

Coverdell Education Savings Account (ESA)

A Coverdell Education Savings Account (ESA) is a convenient way to begin saving money for higher education expenses down the road. Plus, you get the added benefit of tax-free savings as long as you use the funds for qualified education expenses. For more information, please refer to Education Savings Accounts in the Savings section of our web site.

Individual Retirement Accounts (IRAs)

It's never too late to start investing in your retirement, but the sooner you start, the better. An Alaska Pacific IRA is a great way to plan for a financially-secure retirement.

Overall IRA Information

• We offer both Traditional and Roth IRA plans.
• You have the option of opening both a Traditional IRA and a Roth IRA, and make contributions to both, as long as you don't exceed your maximum contribution between the two.
• You can choose to fund either type of IRA plan with any of our Fixed- or Variable-rate Certificates of Deposit, or a Regular Savings account.
• Our IRAs offer the additional security of a federally-insured investment.
• Minimum opening deposit: $100 if you put funds in a Regular Savings and $2,000 if funds are invested in a CD.
• Catch-up contributions are allowable for many IRA holders who are over 50.
• You must have earned income (from employment) to contribute to an IRA.
• We never charge any setup fees or annual maintenance fees.
• If you invest your IRA in a CD, early withdrawal penalties may apply.
• Contributions and distributions are subject to IRS rules. IRS penalties may apply if you make distributions earlier than federal regulations allow. You may want to consult your tax advisor before opening an IRA.

Maximum Contribution Limits
The maximum amount that can be contributed to an IRA is based upon the tax year.

Tax Year	Traditional & Roth IRAs	Additional Catch-up Contributions (Age 50+ Years)
2007	$4,000/individual	$1,000
2008	$5,000/individual	$1,000
2009	Not yet available	Not yet available

Interest Information
Interest is based on the type of account you choose to invest your IRA in—a Fixed- or Variable-rate Certificates of Deposit, or a Regular Savings account. For more information, review our CD and savings account options.

Choosing Between a Traditional and Roth IRA
There are two types of IRAs to consider when planning your retirement investments: The Traditional IRA and the Roth IRA. Here are details about both.

Traditional IRA Features

Contributions, up to the maximum limit allowed by law, are often 100% tax deductible.
Your money grows tax-deferred, which means no taxes are paid on earnings until the money is withdrawn, usually at retirement, allowing your investment to grow more quickly.
You can begin withdrawing IRA funds anytime after the age of 59-1⁄2 without incurring early withdrawal penalties from the IRS.
There are stiff penalties for distributions made before you reach the age of 59 ½, unless the distribution meets one of the exceptions to the IRS early withdrawal penalty.
Required Minimum Distributions (RMD) begin when you turn 70 1/2 years of age.
Annual contributions are not mandatory.
Contribution amounts can vary by tax year, so please call us or check here for updated information.

Who Can Contribute to a Traditional IRA?

You must be under 70-1⁄2 years and have income earned from employment to contribute to a Traditional IRA.
Generally, you cannot deduct contributions from your taxes if you are an active participant in an employer-sponsored retirement plan such as a 401K or pension plan.
Married couples, filing jointly, may contribute the maximum amount to their separate Traditional IRAs, even if one spouse has little or no income. To qualify, the combined earned income must be equal to or greater than the total contributed amount. Contributions to a Traditional IRA cannot be made for any spouse who has attained the age of 70 1/2 for the year of the contribution.
Individuals who turn 50 before the end of the tax year may be eligible for an additional catch-up contribution. The individual (and/or the individual’s spouse if married, filing jointly) must have earned at least as much as the total of the regular contribution(s) and the catch-up contribution(s).
If you are covered by a retirement plan, you can still make tax-deductible contributions if your income falls below specific maximum amounts.

Tax Year	Income/Single Tax Return	Income for Married/Joint Tax Return
2007 Full deduction: Partial deduction:	$50,000 or less: $60,000 or less:	$80,000 or less $100,000 or less
2008	Not yet available	Not yet available
2009	Not yet available	Not yet available

IRS Penalties for Early Withdrawal from a Traditional IRA

There are no IRS penalties if funds are withdrawn after age 59-1/2. Some exceptions apply due to:
- Distributions for qualifying medical, educational, and first-time home buyer expenses
- Distributions for qualifying health insurance expenses incurred by unemployed individuals
- IRS levies
- Establishment of qualifying, substantial, periodic payments
- Conversion of your Traditional IRA to a Roth IRA
- Disability
- Death

Roth IRA Features

Unlike a Traditional IRA, contributions to a Roth IRA are not tax deductible.
Earnings are tax-exempt, so no taxes are paid on qualified distributions. There are, however, stiff penalties for non-qualified distributions.
Distributions are considered qualified as long as the distribution is made after a five-year waiting period and the distribution was made after the recipient has attained the age of 59 1/2 years, and/or an exception to the early withdrawal penalty applies.
There is no required minimum distribution. You don’t have to begin taking required distributions at any specific age. In fact, you can postpone distributions for as long as you like, and you can even continue using earned income to make contributions after age 70-1⁄2.
Annual contributions are not mandatory.
You can be involved in an employer-sponsored retirement plan such as a 401K or pension plan and still contribute to a Roth IRA.

Who Can Contribute to a Roth IRA?
Your modified adjusted gross income (MAGI) and your tax filing status determine whether you are eligible to make a full or partial contribution. If you have a higher income, which prohibits you from making a contribution under a Roth IRA, you may be eligible to contribute to a Traditional IRA plan.

• Individuals:

If you have earned compensation, and it does not exceed the allowable modified adjusted gross income (MAGI) limits, you may contribute to a Roth IRA.
Individuals who are 50 years old or who attain the age of 50 before the end of the tax year may be eligible for an additional catch-up contribution. You must have earned income to support the amount of the catch-up contribution in addition to your regular contribution.

• Married couples:

Married couples, filing jointly, may contribute the maximum amount to their separate Roth IRA accounts, even if one spouse has little or no income. To qualify, your combined earned income must be equal to or greater than the total contributed amount and you must meet the modified adjusted gross income (MAGI) criteria.
If you and/or your spouse are 50 years old, or you attain the age of 50 before the end of the tax year, one or both of you may be eligible to make catch-up contributions. You must have earned income to support the amount of the catch-up contribution in addition to your regular/spousal contribution.

IRS Penalties for Early Withdrawal of Roth IRA
• Earnings are subject to taxes and IRS penalties are imposed if IRA funds are withdrawn prior to five years.
• If you satisfy two conditions, you may make tax-free and penalty-free withdrawals from your Roth IRA. First, your Roth IRA must have been open for a minimum of five years. Second, the withdrawal must be made after one of the following has occurred:

Reach the age of 59 ½
Incur first time home buying expenses
Disability
Death

• Earnings are subject to taxes and IRS penalties are imposed if IRA funds are withdrawn prior to five years; however, IRS penalties will not be assessed if one of the following occurs:

Reach the age of 59-1/2
Distributions for qualifying medical, educational, and first-time home buyer expenses
Distributions for qualifying health insurance expenses incurred by unemployed individuals
IRS levies
Establishishment of qualifying, substantial, periodic payments
Disability
Death

IRA Transfers and Rollovers

There are two ways to move money between IRAs in a manner that preserves the tax advantages of IRA plans—Transfers and Rollovers.

Transfers

Transfers are a common method of moving IRA funds from one IRA to another, and is often used to move an IRA to a different financial institution. Quite simply, IRA funds are transferred directly from one IRA to another. The transaction isn’t considered a distribution to you since you don’t actually receive the funds, and therefore, you can’t use them.
A transfer is not reported to the IRS and is not considered a taxable transaction.
There is no limit on the number of transfers that can be made by an IRA holder.

Rollovers

A rollover is a method of moving money from one IRA to another that begins with a distribution of retirement assets, followed by a contribution of all or a portion of the distributed assets to another IRA.
Generally, the rollover contribution must take place within a 60-day period, starting the day after you receive your IRA payout.
Amounts not properly rolled over that have not previously been taxed will generally be taxed as ordinary income. In addition, an IRS early withdrawal penalty of 10% may apply.
An IRA cannot be rolled over more than one time per 12-month period.

Converting Funds from a Traditional IRA to a Roth IRA

If you have funds in a Traditional IRA, at some point you may want to consider moving some of the funds into a Roth IRA. If so, please contact us so we can provide you with additional information and help you with the conversion.

IRA Distributions

When it gets close to the time that you will start taking distributions from your IRA, it is important that you contact us, so we can review everything with you. It will also ensure that your distributions are reported to the government correctly so you don’t incur unnecessary penalties from the IRS.

Online Retirement Calculators

We offer a variety of calculators to help you better plan for your retirement. Check out our Retirement Calculators.

Questions?
We understand that you may have questions, and we would be happy to help. Please call or stop by and talk to a Customer Service Representative.

* Rates quoted are effective as of 05/14/08. Posted interest rates and Annual Percentage Yields are subject to change at any time without notice.

Find the Best Option... Compare Our Accounts

Investment Calculators