savings accounts

Start saving today!

Merchants & Farmers has an account just for you! Whether you are a student, senior or business, we have an account to suit your needs, we cater to all of our customers. Click on any of the accounts below to learn more about each account:

statement

Savings Account

  • $200.00 Minimum Opening Deposit
  • Quarterly Service Charge:
    • $1.00 per month if minimum balance falls below $50.00
    • $2.00 per month if minimum balance falls below $25.00
    • $2.00 per debit over 6 per quarter
  • Truncated Statement – No images
  • No fee for ATM Card
  • Statement Savings Interest compounded quarterly

Also Available

  • E-Statements – Emailed Statements.
  • Combined Statements – Several accounts on one monthly statement
  • Internet Banking – Online account information, transfers, etc.
  • Bill Pay – Easy online bill payment service.

investment

Savings Account

  • $10,000.00 Minimum Opening Deposit
  • Investment Savings Interest compounded quarterly
  • Rate subject to change weekly
  • Quarterly truncated statements – No images
  • $15.00 per withdrawal over 3 per quarter
  • No fee for ATM Card

Also Available

  • E-Statements – Emailed Statements.
  • Combined Statements – Several accounts on one monthly statement
  • Internet Banking – Online account information, transfers, etc.
  • Bill Pay – Easy online bill payment service.

health

Savings Account

A Health Savings Account (HSA) is a (tax-exempt) account that you can put money into to save for future medical expenses.

The customer controls all the decisions about their HSA including:

  • How much money to put into the account (within plan limits)
  • Whether to save for future expenses or pay current medical expenses
  • Which medical expenses to pay from the account
Funds remain in the account from year to year, just like an IRA. There are no “use it or lose it” rules for HSA’s.

An HSA provides triple tax savings for the customer:

  • Tax deductions when you contribute
  • Tax-Free earnings through interest income
  • Tax-Free withdrawals for qualified medical expenses
Qualifications to open an HSA:
  • Have medical coverage under an HSA-qualified “High Deductible Health Plan”(HDHP)
  • Have no first dollar medical coverage (co-pay), with exceptions for plans providing limited types of coverage.
  • Cannot be enrolled in Medicare
  • Cannot be claimed as a dependent on someone else’s tax return
Maximum Contributions: A customer may contribute up to the amount of the HDHP deductible but no more than the following limits:
  • Self-only coverage – $ 2,700
  • Family coverage – $ 5,450

Example: If a self-only coverage customer has a deductible of $ 1,500.00, he could contribute $ 1,500.00 to his HSA. But if a self-only coverage customer has a deductible of $3,000, he could only contribute $ 2,700.00 to the HSA.

The limits apply on a per month basis based on coverage as of the first day of such month. Therefore, if coverage begins December 1 then the deductible amount for self-only coverage is limited to $225 ($2,700 / 12 months) and $454 for family coverage ($5,450 / 12 months).

There is a 6% excise tax for excess contributions.

Catch Up Contributions:
Individuals age 55 and older can make additional “catch-up” contributions. The maximum annual catch-up contribution is as follow:

  • 2006 – $ 700
  • 2007 – $ 800
  • 2008 – $ 900
  • 2009 and after – $ 1,000
Tax Status of HSA:
  • All earnings are tax free
  • All withdrawals for qualified medical expenses are tax free
Withdrawals from HSA:
You can use the money in the account to pay for any “qualified medical expense” permitted under federal tax law. This includes most medical care and services, dental and vision care.

You can use the money in the account to pay for uninsured medical expenses of yourself, your spouse, or your dependent children. You can pay for the expenses of your spouse and dependent children even if they are not covered by your HDHP.

Under these specific circumstances, you may use the money to pay for medical insurance premiums:

Any health plan coverage while receiving federal or state unemployment benefits
COBRA continuation coverage after leaving employment with a company that offers health insurance coverage
Qualified long-term care insurance
Medicare premiums and out of pocket expenses, including deductibles, co-pays, and co-insurance for Part A, Part B, Part C, & Part D.
Penalties for Early Withdrawal:
Any amounts used for purposes other than to pay for “qualified medical expenses” are taxable as income and subject to an additional 10% tax penalty.

After you turn age 65, the 10% additional penalty no longer applies. If you become disabled and/or enroll in Medicare, the account can be used for other purposes without paying the additional 10% penalty.

Required Distributions:
There are no required distributions.

At the death of the owner of an HSA, the spouse of the owner becomes the owner of the HSA and can use it as if it were their own. If the owner is unmarried, the account will no longer be treated as an HSA and will pass to the owner’s beneficiary.

Christmas Club

Savings Account

  • $10.00 Minimum Opening Deposit
  • No debits allowed. Checks are produced on Nov. 7 each year.
  • No Statement Images
  • Christmas Club Interest compounded annually

Vacation Club

Savings Account

  • $10.00 Minimum Opening Deposit
  • No debits allowed. Checks are produced on June 7 each year.
  • No Statement Images
  • Vacation Club Interest compounded annually

Kids Club

Savings Account

  • Eligibility: 18 years and under. Account will automatically convert to a Statement Savings at the age of 18.
  • During the month of June, account holders can bring in A & B report cards and the bank will make a contribution to their account!
  • $5.00 Minimum Opening Deposit
  • Service Charge of $2.00 per debit over 6 per quarter.
  • No Statement Images
  • Kids Club Interest compounded Quarterly

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Banking made easy for our customers on the go!

Download the M&F Banking App

Banking made easy for our customers on the go!

We don't think of them as loans. They're investments in you.

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