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Savings Accounts, from Basic to Money Market

Save for a rainy day ... a penny saved is a penny earned ... pay yourself first ...

It all sounds like good advice, doesn't it? Even today, when there are sophisticated choices to help you accomplish your money-management goals, a basic savings account should be part of your financial plan. Simply put, money in a savings account is still the safest way for you to save. It's convenient, too with online banking.

Savings Account Choices that Fit You

Because your savings plan may be different from another's, we have many different savings accounts for you to choose, from basic savings to HSAs (Health Savings Accounts). For your convenience, account activity is accessible at your fingertips through the security of Telephone Banking and Online Banking.

Choose a Merchants Bank Savings Account that best fits your savings plan, with options from basic savings accounts to HSAs (Health Savings Accounts):

 

Diamond Money Market Savings Account

Advantage Savings Accounts

Basic Savings Accounts

Kids Savers Club

Vacation Club Savings Accounts

Christmas Club Savings Accounts

Health Savings Account (HSA)

Printable Brochure view details view details view details view details view details view details view details
Minimum balance to open account $5,000 $1,000 $50 n/a none none n/a
Minimum daily balance to avoid service charge $5,000 $1,000 $50 n/a n/a n/a n/a
Service charge $10/month $8/quarter $8/quarter n/a n/a n/a n/a
Withdrawals allowed per quarter/month 6/month* 12/quarter* 12/quarter* n/a Withdrawals are not permitted prior to Club maturity
 
Withdrawals are not permitted prior to Club maturity Unlimited
Service charge per withdrawal exceeding number allowed $10 $2 $2 n/a Entire balance is paid out and accrued interest is forfeited if withdrawn prior to Club maturity Entire balance is paid out and accrued interest is forfeited if withdrawn prior to Club maturity n/a
Interest paid monthly quarterly quarterly quarterly first business day in June
 
first business day in November monthly
Statement frequency monthly quarterly quarterly quarterly annual annual monthly
eStatements Available through Merchants Online Banking Available through Merchants Online Banking Available through Merchants Online Banking Available through Merchants Online Banking Available through Merchants Online Banking Available through Merchants Online Banking Available through Merchants Online Banking
ATM/Debit Card access Yes Yes Yes No n/a n/a Yes

*No more than 6 preauthorized or phone transfers and withdrawals to another of your bank accounts or to a third party.


 

Diamond Money Market Savings Account

Our premium savings account, the Diamond Money Market, allows you the freedom of a checking account, FDIC insurance, and a tiered interest rate structure that rewards higher balances.

Six withdrawals are permitted per month, and, for your convenience, we'll provide you with free check blanks and ATM access. There is a $10 charge for each withdrawal in excess of six per month. A $5,000 minimum balance is required. There is a $10 monthly maintenance charge if the balance falls below $5,000.

You’ll also enjoy the conveniences of Free Telephone Banking and Free Online Banking.

Make the most of your time and money, when you open a Diamond Money Market Savings Account. Just visit our Application Center to apply online for a Diamond Money Market Savings Account.

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Advantage Savings Account

A traditional savings account offering you liquidity and FDIC security.If you enjoy the flexibility of a savings account without having to maintain large minimum balances, the Advantage Savings account may be perfect for you.

Just a $1,000 minimum deposit is required to open an account. Twelve withdrawals are permitted per quarter without charge*. There is a $2 charge for each withdrawal in excess of twelve per quarter.

Statements for this savings account are available quarterly. There is a $8 quarterly maintenance charge if the balance on any day of the statement cycle falls below $1,000.

You’ll also enjoy the conveniences of Free Telephone Banking and Free Online Banking.

Open an Advantage Savings Account today. Just visit our Application Center to apply online for an Advantage Savings Account.

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Basic Savings Accounts

With just a $50 minimum deposit required to open this savings account, it often appeals to a young saver.
Twelve withdrawals are permitted per quarter without charge*. There is a $2.00 charge for each withdrawal in excess of twelve quarterly. There is an $8 quarterly maintenance charge if the balance on any day of the statement cycle falls below $50.

You’ll also enjoy the conveniences of Free Telephone Banking and Free Internet Banking.

Put a savings plan in place today when you open a Basic Savings account. Just visit our Application Center to apply online for a Basic Savings Account.

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Kids Savers Club, a first savings account

The Savers Club for Kids rewards the savings habits of young savers!

This product, designed exclusively for children ages 15 and under, rewards Club members for achieving certain savings levels and helps educate children on the benefits of establishing sound savings habits at an early age. And, Club members earn incentive prizes as they reach specified savings levels. When savings balances reach the levels of $25, $50, $75, $100, $200, $350, and $500, members earn valuable incentive prizes including coin banks, coloring books, sports bottles, frisbees, pizza and more.

A savings register is provided to Club members when an account is opened, and the account is automatically converted to a Basic Savings account when the account owner reaches age 16. There is no minimum balance required to open a savings account or to earn interest on this account.

You’ll also enjoy the conveniences of Free Telephone Banking and Free Online Banking.

Start teaching a child one of the most valuable lessons they can learn, the value of saving, by opening a Kids Savers Club today. Just visit our Application Center to apply online for a Kids Savers Club Savings Account.

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Vacation Club Savings Accounts

What a great way to start the summer!  A Vacation Club is an automated savings plan to help you save throughout the year for increased expenses during the summer season.  Some of the most popular uses for Vacation Club funds are family vacations, increased child-care expenses when school is not in session, a family wedding, and many more. But you can use your savings account for whatever you wish!

  • Available to individuals in Club levels of $250 or more
  • Automated deposits from your checking, savings or payroll are made to the Club account August through May
  • Payment amounts differ by indi­vidual savings goal when the total savings amount is divided by 10 monthly payments. For example: A $250 savings goal would require a $25 monthly payment for 10 months, a $1,000 savings goal, a $100 payment
  • Accrued interest is paid on Club balances the first business day of June and funds are disbursed the same day
  • No minimum deposit required
  • Withdrawals are not permitted prior to the first business day of June
  • Club payments automatically resume each August, unless account has been closed
  • You’ll also enjoy the conveniences of Free Telephone Banking and Free Online Banking.


 

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Christmas Club Savings Accounts

Our early Christmas gift to you! A Christmas Club is an automated savings plan to help you save throughout the year for increased expenses for the holiday season.  Some of the most popular uses for Christmas Club funds are Christmas gifts, a winter vacation, and increased heating costs during the winter season. But you can use your savings for whatever you wish!

  • Available to individuals in Club levels of $250 or more
  • Automated deposits from your checking, savings or payroll are made to the Club account January through October
  • Payment amounts differ by indi­vidual savings goal when the total savings amount is divided by 10 monthly payments. For example: A $250 savings goal would require a $25 monthly payment for 10 months, a $1,000 savings goal, a $100 payment
  • Accrued interest is paid on Club balances the first business day of November and funds are disbursed the same day
  • No minimum deposit required
  • Withdrawals are not permitted prior to the first business day of November
  • Club payments automatically resume each January, unless account has been closed


 

You’ll also enjoy the conveniences of Free Telephone Banking and Free Online Banking.

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Health Savings Account (HSA)

A Health Savings Account allows individuals with a qualifying high deductible health plan to save for future medical expenses. Structured as a tiered interest-bearing checking account, the Merchants Bank HSA offers the return of a savings account with the convenience of a checking account. If you're interested in other HSA options, please click here.


Who Can Have An HSA?

Any adult can contribute to a Health Savings Account if they:

  • Have coverage under an HSA-qualified “high deductible health plan” (HDHP)
  • Have no other first-dollar medical coverage (with limited exceptions)
  • Are not enrolled in Medicare
  • Cannot be claimed as a dependent on someone else’s tax return


HSA Contributions

Contributions to a Health Savings Account can be made by the account owner, an employer, or both.  However, the total contributions are limited annually.  Contributions can be made to an HSA each year that the account owner is eligible.  Contributions can be made up to the amount of the plan deductible, not to exceed annual limits.


Determining Your Contribution to your HSA

Annual contribution limits change from year to year. Go to www.irs.gov to determine your eligible contribution each year.

 
HSA Contributions for Prior Year

Like an IRA, contributions can be made as late as April 15 of the following year.  However, all contributions will be assumed to be made for the current tax year unless deposited in-person and designated for the prior year by completing a Previous Year Contribution form.

Using Your HSA

You can use the money in the account to pay for any “qualified medical expense” permitted under federal tax law.  For a complete listing, please visit www.irs.gov or consult your tax advisor.

You may use the money in the health savings account to pay for medical expenses for yourself, your spouse, or your dependent children.  You are allowed to use your HSA to pay for expenses incurred by your spouse and dependent children, even if they are not covered by your HDHP.

Any amounts used for purposes other than to pay for “qualified medical expenses” are taxable as income and subject to tax penalties; tax penalties in certain situations, such as attaining age 65, do not apply (consult your tax advisor).

 
Advantages of HSAs

Flexibility – You can use the funds in your health savings account to pay for current medical expense, including expenses that your insurance may not cover, or save the money for future needs.

Control – You make all the decisions about how much to contribute (within the defined guidelines), when to withdraw and which financial institution will act as custodian.

Portability – Account are completely portable, meaning you can keep your health savings account even if you:

  • change jobs
  • change your medical coverage
  • become unemployed
  • move to another state
  • change your marital status


Ownership – Funds remain in the account from year to year.  There are no “use it or lose it” rules for HSAs.

Upon the death of the account owner, HSA assets pass to a designated beneficiary.  If the beneficiary is the account owner’s spouse, the HSA will be treated as his/her own HSA.  If a non-spouse beneficiary was designated, the health savings account will no longer be treated as an HSA.  The account will pass to the beneficiary or become part of the estate (and be subject to any applicable taxes).

 
HSA Tax Savings+

An HSA provides federal tax savings in three ways:

  • tax deductible contributions
  • tax-free earnings
  • tax-free withdrawals for qualified medical expenses

+Consult a tax advisor

 
Opening an HSA at Merchants Bank

  • At Merchants Bank we have made health savings accounts extremely convenient. 
  • Contributions Made Easy…
    • employer or employee contributions accepted through payroll direct deposit
    • make in person at any Merchants Bank location
  • Free Merchants Bank Debit Card
  • Free first order of Merchants Bank custom HSA checks
  • Tiered-Interest Rates encourages saving for future needs by rewarding higher balances
  • Free Online Access through Merchants Bank Internet Banking
  • Free Government Reporting - all contributions and distributions from your HSA will be reported by Merchants Bank to the IRS at the end of each tax year

 

Contact Us at Merchants Bank to learn more about taking advantage of the benefits offered by a Merchants Bank Health Savings Account (HSA) today!
 

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