What Regions Bank offers for retirement and savings

Regions Bank is a regional bank operating in the South, Midwest, and Texas with branches in 15 states. The bank offers standard deposit accounts — checking, savings, and money market accounts — plus Individual Retirement Accounts (IRAs) and certificates of deposit (CDs). Regions does not offer employer-sponsored 401(k) plans; those come through your employer's payroll provider or a third-party plan administrator.

If you work for a company that uses Regions as a banking partner, your employer may have set up payroll services through them, but the retirement plan itself would be managed separately. For individual savers, Regions provides the account types you can open on your own: traditional IRAs, Roth IRAs, and savings vehicles like high-yield savings accounts and CDs.

The specific features, interest rates, and minimum balances for these accounts change regularly and vary by branch location and account type. You can find current terms by visiting a Regions branch, calling their customer service line, or checking their website for the account you are considering.

Key Takeaways

  • Regions Bank offers IRAs and standard savings accounts but does not sponsor or administer employer 401(k) plans.
  • Interest rates, minimum balances, and fees for Regions accounts vary by account type and change over time, so you should check current terms before opening.
  • Traditional and Roth IRAs opened at Regions follow the same IRS contribution limits and withdrawal rules as IRAs at any other bank.
  • Regions is a regional bank with branches in 15 states; if you live outside those states, you would need to bank online or by phone for most services.
  • CDs at Regions lock your money for a set term in exchange for a fixed interest rate, and early withdrawal usually means losing some or all of the interest earned.

IRA accounts at Regions Bank

Regions offers both traditional and Roth IRAs. The difference between them is how and when you pay taxes on the money you contribute and earn. With a traditional IRA, you may deduct your contributions from your taxable income in the year you make them (subject to income limits if you have a workplace retirement plan). The money grows tax-deferred, and you pay income tax on withdrawals in retirement. With a Roth IRA, you contribute after-tax dollars, the money grows tax-free, and you pay no tax on withdrawals in retirement — provided you have held the account for at least five years and are at least 59½ when you withdraw.

Both account types have the same IRS contribution limits regardless of where you open them. For 2024, you can contribute up to $7,000 per year if you are under 50, or $8,000 if you are 50 or older. These limits explore to the total you contribute across all IRAs you own, not per account or per bank. If you have an IRA at Regions and another at a different bank, your combined contributions cannot exceed the annual limit.

Regions does not charge a fee to open an IRA, but the bank may charge monthly maintenance fees or require a minimum balance to avoid fees. You should ask about these costs when you open the account, because they reduce the growth of your savings over time.

Savings accounts and CDs at Regions

Regions offers savings accounts and money market accounts that earn interest. The interest rate varies based on how much you deposit and how long you keep the money in the account. Rates change frequently, so the rate you see today may not be the rate you receive when you open the account next week. You can compare Regions' current rates to other banks' rates to see whether the account fits your needs.

Certificates of deposit (CDs) are accounts where you agree to leave your money untouched for a fixed period — typically three months to five years — in exchange for a higher interest rate than a regular savings account. When the term ends, you can withdraw the money and interest, or let it roll over into a new CD at the current rate. If you withdraw before the term ends, Regions will charge an early withdrawal penalty, which is usually a certain number of months' worth of interest. The longer the CD term, the higher the interest rate, but your money is locked away longer.

Money market accounts at Regions combine features of checking and savings accounts. They typically offer higher interest rates than savings accounts but may require a larger minimum balance and limit how many withdrawals you can make per month.

How Regions IRAs compare to IRAs at other banks

The tax treatment and contribution limits of an IRA are set by the IRS, not by the bank. This means a traditional IRA at Regions follows the same rules as a traditional IRA at any other bank: same contribution limits, same age for penalty-free withdrawals (59½), same required minimum distribution rules at age 73. The difference between banks is in the interest rate they pay, the fees they charge, and the investment options they offer.

At Regions, an IRA is typically a savings account or CD that earns a fixed interest rate. At other banks or brokerages, you might open an IRA that lets you invest in stocks, bonds, or mutual funds instead. The investment option you choose depends on your risk tolerance and how long until you retire. A Regions IRA savings account is straightforward and safe but may earn less over time than an IRA invested in the stock market. You should compare the interest rate Regions offers to rates at other banks and consider whether you want the option to invest in securities.

Withdrawal rules and penalties

Traditional IRAs have a required minimum distribution (RMD) starting at age 73. This means you must withdraw a certain amount each year, calculated by the IRS based on your age and account balance. If you do not take the RMD, you owe a penalty on the amount you should have withdrawn. Roth IRAs do not have an RMD during your lifetime, so you can leave the money in the account as long as you want.

Both traditional and Roth IRAs allow you to withdraw money penalty-free at age 59½. If you withdraw before that age, you owe a 10% penalty on the amount withdrawn, plus income tax on the withdrawal (for traditional IRAs) or just the penalty (for Roth IRAs, if you are withdrawing earnings rather than contributions). There are a few exceptions to this penalty — for example, if you become disabled, or if you use the money to buy your first home — but the general rule is that early withdrawal costs you.

For CDs at Regions, the penalty for early withdrawal is set by the bank and varies by CD term. A three-month CD might have a penalty of three months' interest, while a five-year CD might have a penalty of six months' interest. Ask Regions what the penalty is before you open the CD, so you know the cost if you need the money before the term ends.

Regions Bank's geographic reach and online banking

Regions Bank has physical branches in Alabama, Arkansas, Florida, Georgia, Illinois, Indiana, Iowa, Kentucky, Louisiana, Mississippi, Missouri, North Carolina, Tennessee, Texas, and Wisconsin. If you live in one of these states, you can visit a branch to open an account or speak with a banker in person. If you live outside these states, you can still open some accounts online or by phone, but you may not have access to in-person services.

Regions offers online banking and a mobile app for managing accounts, checking balances, and transferring money. You can also call their customer service line to ask questions about accounts or rates. The availability of specific services — such as opening an IRA online or getting a CD quote by phone — may depend on your state and the type of account.

Fees and minimum balances

Regions charges different fees depending on the account type. Some accounts have a monthly maintenance fee if your balance falls below a certain amount, while others waive the fee if you set up direct deposit or maintain a minimum balance. Some accounts have no monthly fee at all. Fees reduce the interest you earn, so it is worth asking about them before you open an account.

Minimum balance requirements also vary. Some Regions accounts require a minimum deposit to open, while others do not. If your balance drops below the minimum, Regions may charge a fee or close the account. You should confirm the minimum balance and fee structure for the specific account you want before you open it.

Frequently Asked Questions

Can I open a Regions IRA if I do not have a job?

You can open a traditional or Roth IRA at Regions if you have earned income from self-employment or a job, even if you are not currently employed. If you have no earned income in a given year, you cannot contribute to an IRA for that year. A spouse with no earned income can contribute to a spousal IRA if their spouse has earned income, but Regions can tell you whether they offer spousal IRAs.

What happens to my Regions IRA if I move out of state?

Your IRA stays open and continues to earn interest or grow. You can still manage it online or by phone. If Regions does not have branches in your new state and you want in-person service, you can transfer the IRA to another bank without penalty — this is called a trustee-to-trustee transfer and does not count as a withdrawal.

Is the money in my Regions IRA or savings account insured if the bank fails?

Yes. Deposits at Regions Bank are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per account type, per depositor. This means if Regions fails, the FDIC will reimburse you up to $250,000 for each account type you own (savings, checking, IRA, CD, etc.). IRAs are insured separately from other accounts, so you have $250,000 of FDIC coverage for your IRA and another $250,000 for your savings account.

Can I invest in stocks through a Regions IRA?

Regions IRAs are typically savings accounts or CDs that earn a fixed interest rate. If you want to invest in stocks, bonds, or mutual funds inside an IRA, you would need to open an IRA at a brokerage like Fidelity, Charles Schwab, or Vanguard instead. You can transfer money from a Regions IRA to a brokerage IRA without penalty using a trustee-to-trustee transfer.

What is the difference between a Regions CD and a savings account?

A CD locks your money for a set term (three months to five years) and pays a higher interest rate in exchange. A savings account lets you withdraw money anytime without penalty, but pays a lower interest rate. Choose a CD if you do not need the money for several months or years; choose a savings account if you want access to your money without waiting or paying a penalty.