Sometimes the hardest part of saving for retirement is getting started. That’s why we offer Launchpad—a savings account that uses compound interest to help you establish and grow your retirement savings at your own pace until you’re ready to open an individual retirement account (IRA).
Who It’s For
You should consider a Launchpad savings account if you:
- Have a low to moderate income and struggle to save for retirement.
- Have no employer retirement plan, or are not currently participating in one.
Open an account with as little as $5
Watch It Grow
Automatic savings and high interest help you build momentum
Reach Your Goal
Transition to an IRA when account balance reaches $1,000
Making Your Savings Grow
Launchpad gives you the base from which to begin your retirement saving habits. When you open a Launchpad account, we’ll help you make saving automatic by setting up a direct deposit from your paycheck. Your goal is to save $1,000 that you can use to open an IRA.
The growth of your balance may be slow and gradual, but it will pick up speed over time with the help of compound interest.
|Account Type||Dividend Rate||Annual Percentage Yield (APY)1||Min. Balance||Max. Balance|
|Rates are effective as of 01/01/2021 and are subject to change without notice.
1Launchpad Savings Rate: Dividends and annual percentage yields (APY) accurate as of the last dividend declaration date. The dividend rate and annual percentage yield may change after account opening. Fees could reduce earnings on the account.
Limitations: If there is no deposit to this account in any 90-day period, account will be closed and the funds will be deposited, less the $5, into member's share savings. Once the balance reaches $1,000 you have 90 days to move the funds into a Dupaco, Dupaco Financial Services, or First Community Trust IRA. If the funds are not moved into one of these accounts within 90 days of reaching the $1,000 balance, the account will be closed and the funds will be deposited, less the $5 fee, into member's share savings. A $5 penalty applies for each withdrawal from this account. The penalty is waived if the funds are transferred to an IRA. This is not a retirement account and there are no tax benefits on this account.
It’s Not an IRA … Yet
A Launchpad savings account isn’t an IRA. It’s intended to be a savings account rather than a spending account. There are no tax consequences or reporting for your Launchpad account, but you will be penalized $5 for each withdrawal you make.
Once you reach the $1,000 balance goal, you’re ready to open an IRA!
You will have 90 days to move the funds into a Dupaco IRA, Dupaco Financial Services IRA or First Community Trust IRA. The withdrawal penalty is waived if the funds are transferred to an IRA. If the funds are not moved into one of these accounts within 90 days of reaching the $1,000 balance, the account will be closed and the funds will be deposited, less the $5 fee, into the member’s share savings.
To open a Launchpad savings account, give us a call at 800-373-7600, or visit your nearest Dupaco branch.