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Simplified Employee Pension (SEP)

If you are self-employed or an employer, a SEP is a retirement planning solution that uses IRAs as the investment vehicle for both you and your employees.

  • A SEP plan allows employers to contribute to traditional IRAs (SEP-IRAs) set up for employees. A business of any size, even self-employed individuals, can establish a SEP*
  • Contributions can be up to 25% of each employee's compensation - subject to IRS limits
  • Interest earned is tax-deferred and contributions are tax-deductible*

*The maximum amount of compensation or earned income used in determining contributions for any employee is subject to compensation limits set by the IRS. There can be a substantial penalty for early withdrawal. Consult with your tax advisor about your specific situation. Other restriction's may apply. Melrose Bank accepts deposits and is opening new accounts from customers residing in New England (MA, CT, NH, ME, VT, RI).

(Rates for CD and IRA accounts opened in our branch.)

Effective Date: Wednesday, June 26, 2019

TermMinimum Daily
Balance to earn APY
APYInterest Rate
CDs190 day$500.00.85%.85%
6 months$500.001.25%1.25%
1 year$500.002.25%2.22%
18 months$500.002.35%2.32%
2 years$500.002.65%2.61%
3 years$500.002.85%2.81%
4 years$500.002.25%2.22%
5 years$500.002.25%2.22%

1 Annual Percentage Yield (APY) and rate are effective as of the date posted and are subject to change without notice. Substantial penalty for early withdrawal. Fees may reduce the earnings on the account. Minimum balance of $500.00 required to open the account and obtain APY. Interest compounded and credited monthly for terms of 1 year or greater. Interest does not compound and will be credited monthly for terms of 11 months or less. IRA Accounts with terms of 6 months or longer are eligble for these rates. Melrose Bank accepts deposits and is opening new accounts from customers residing in New England (MA, CT, NH, ME, VT, RI).

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