Savings Accounts, Retirement

Farmers and Merchants Bank offers a number of ways to profitably accumulate funds with the safety and peace of mind of FDIC insurance. Moreover, you have the freedom to choose whichever savings account works best for you.

With $ 250,000.00 of FDIC depositors insurance, now is a great time to consider opening a Farmers and Merchants Bank savings account. 


Statement Savings Accounts

We offer a Statement Savings account paying a competitive rate of interest. You will not be assessed any service charges with this account.  A monthly statement is provided for your convenience.

Holiday and Vacation Clubs

A Holiday or Vacation Club account provides a dedicated savings account for specific times of the year. Savings timetables are established during the year, and withdrawals are restricted until specified dates of the year. Holiday Club Account funds are distributed in mid-October, just in time for the holiday season and year-end expenses. Vacation Club Account funds are distributed in May, in time for summer vacations or other summer-time related expenses.

Money Market

Insured Money Market accounts are available to individual account customers providing tiered high yield interest with a minimum deposit of $1,000. We also offer a Jumbo Money Market account with a minimum deposit of $100,000, which pays an even higher rate of interest. Several interest rate tiers apply to money market accounts and the Annual Percentage Yield (A.P.Y.) is subject to change at any time.  A monthly statement is provided for your convenience.

Certificates of Deposit

We offer a wide-range of Certificate of Deposit account terms, with a low minimum deposit requirement of $500.00. Interest is paid monthly, quarterly or at maturity and can be automatically credited to your account, or you can choose to have your interest check mailed to you. Certificates of Deposit renew automatically and the Annual Percentage Yield (A.P.Y.) is subject to change at maturity. A penalty may be imposed for early withdrawal, and fees could reduce earnings on the account. CD’s are available from a 3-month to a 60-month term. We also offer CD specials on a periodic basis.

View Specials View Rates

Health Savings Accounts (HSA)

A Health Savings Account (HSA) is a tax-sheltered savings account, which may be opened when an individual enrolls in a high deductible health plan (HDHP). The advantages of an HSA are tax-deductible contributions and tax-free distributions for future qualified medical and retiree health expenses. In addition, the earnings in the HSA are not taxable while inside the HSA. Since the HSA distributions that are used for qualified medical expenses are tax free, the earnings and principal are never taxed. Please consult your tax advisor for the impact on your personal tax situation.

Retirement Savings

Start investing in your future by making the maximum allowable contribution to an Individual Retirement Account (IRA), each year. Your savings are insured by the FDIC, and several account type options are available to you at Farmers and Merchants Bank.

Traditional IRA

  • Annual contributions up to $7,000 (or 100% of compensation if smaller) are permitted, plus a $1,000 catch-up contribution if you are age 50, or over.
  • Depending on your income, your contributions may be tax deductible. Ask your tax advisor about your individual financial situation.
  • Distributions at retirement will be taxed at your tax rate, at that time.
  • Your spouse may open, and contribute, to his/her own IRA account.

Roth IRA

A Roth IRA is an individual retirement account that allows non-deductible contributions but features tax-free distributions, with specific reasons, after a five-year holding period. The term “tax-free” means, free from federal income taxes. Please consult your tax advisor to determine your eligibility.

There are two requirements for eligibility to make regular contributions to a Roth IRA; you must have compensation (or your spouse must have compensation) and your modified adjusted gross income for any tax year cannot exceed certain limits.

  • Annual contributions of up to $7,000 (or 100% of compensation if smaller), plus a $1,000 catch up contribution, if age 50 and over, are allowed.
  • Contributions are not deductible, but distributions at retirement are tax-free.
  • Earnings are tax-free if the account is open for a period of five (5) tax years.

Coverdell Education Savings Account (CESA)

This is a convenient, tax-exempt way to save for a child’s education. Any earnings are tax exempt as long as the funds are used for educational expenses and you can choose from a variety of investment opportunities. Individual eligibility may vary, and should be discussed with a tax advisor, or accountant, prior to opening an account with Farmers and Merchants Bank.

  • A parent, or guardian, in the name of any child, up to the age 18, may open this account.
  • Annual contributions of up to $2,000 per child are permitted.
  • Distributions for qualified education expenses are tax and penalty-free.
  • Contributions are not tax-deductible.
  • Qualified distributions include tuition, room and board, fees, supplies, and uniforms for both lower and higher education.

All IRAs and CESA Investments are available as certificates of deposit ($100 minimum opening deposit is required).


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