Health Savings Accounts

A Health Savings Account from Farmers & Merchants Union Bank is great help for employers and consumers to manage healthcare expenses.  An HSA helps you save for future qualified medical & retiree healthcare expenses.  Contributions to an HSA are tax-deductible.

Benefits for Consumers:

• Create a cushion for your budget before a medical emergency happens.
• Funds are FDIC insured.
• Flexible account lets you pay for medical expenses while earning interest on the account balance.
• Withdrawals for qualified medical expenses are never taxed.
• Unspent HSA funds remain in the account and accumulate interest tax deferred year to year.
• HSA contributions are tax deductible, just like IRA's.  Ask your health insurance agent or a tax advisor for current contribution limits.
• Manage your HSA with monthly statements and our free internet banking.

Benefits for Employers:

• Allows employers to control health plan costs without risking health insurance protection.
• Enables employees to take responsibility for how healthcare dollars are spent.
• HSA contributions are tax deductible.

How to make HSA contributions:

• Internet banking and/or phone banking allow 24-hour access to account information and to perform account activity.
• Arrange an automatic transfer from your consumer or business deposit account into your health savings account
• Stop in at any of our locations or mail your deposit

For more guidance on HSA accounts, Click here.

Health Savings Account Information
	Your minimum deposit, time and balance requirements: There is no minimum deposit required to open the account. You must maintain a minimum average daily balance of $500.00 in the account for the statement period to obtain the disclosed annual percentage yield.
	How we determine the interest rate: Your interest rate and the annual percentage yield may change.  At our discretion, we may change the interest rate on your account.  We may change the interest rate at any time. The annual percentage yield assumes interest will remain on deposit until maturity.  A withdrawal will reduce earnings.
	Tiered Rate Account:  Larger balances earn higher interest.  See our rate sheet for details.
	How we compound and credit your interest:  Interest will be compounded monthly. Interest will be credited to your account monthly.
	How we compute the balance to determine your interest:  We use the average daily balance method to calculate the interest on your account.  The average daily balance method applies a periodic rate to the average daily balance in the account for the statement period.  The average daily balance is calculated by adding the principal in the account for each day of the statement period and dividing that figure by the number of days in the statement period.
	Accrual of interest on deposits other than cash:  Interest begins to accrue on the business day you deposit noncash items(for example, checks).
	Statement Frequency: The statement period is monthly.
	Service Charges:  If your average daily balance falls below $5,000.00, a service charge of $.50 per debit paid over 3 will be assessed.  Your periodic statement will itemize this service charge at the end of your statement as "Total Charge for Debits."   The average daily balance is calculated by adding the principal in the account for each day of the statement period and dividing that figure by the number of days in the statement period.
	Account Setup Fee: $20.00.  The setup fee is waived if an account is opened by a rollover or transfer with an initial deposit over $1,000.00.  Checks to be ordered through Farmers & Merchants Union Bank.  Any checks ordered through a third party will be returned.
	Other fees may be charged on your monthly statement.