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. During any monthly statement period, you may not make more than six (6) withdrawals, or transfers, to another account of yours or to a third party by means of a pre-authorized or automatic transfer, telephone order or instruction, check, draft, debit card, or similar order. A monthly statement is provided for your convenience.
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.
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. During any calendar month, you may not make more than six (6) withdrawals, or transfers, to another account of yours or to a third party by means of a pre-authorized or automatic transfer, telephone order or instruction, check, draft, debit card, or similar order. A monthly statement is provided for your convenience.
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. On deposits of $50,000 or more, we offer a variety of maturity terms with special rates. CD’s are available from a 3-month to a 60-month term. We also offer CD specials on a periodic basis.
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.
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.
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.
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.
All IRAs and CESA Investments are available as certificates of deposit ($100 minimum opening deposit is required).