- Health Savings Account (“HSA”). Why pays taxes on money that is going towards health expenses? An HSA is an interest bearing, tax deferred account for the purpose of saving for and paying the expenses associated with a High Deductible Health Plan (“HDHP”).
- A key aspect of an HDHP is your ability to set aside money to be used to pay your deductible or qualified medical expenses.
- Contributions to an HSA are tax deductible or, in the case of an employer sponsored plan, made with pre-tax dollars.
- Withdrawals from an HSA used to pay qualified healthcare deductibles and qualified medical expenses are tax and penalty free.
- HSA funds
that are unused at year end are carried forward into future years. Unused
funds can even be used to supplement your retirement income.
Savings Accounts. Start your children on the path to saving and
financial responsibility while they are young. By providing the
financial education and tools for saving now, you're contributing to your
children’s financial freedom later. Parents and guardians can open a minor
account at MSB with as little as $10.
of Deposits (“CD”). A certificate of deposit is a time deposit with
specific terms and Annual Percentage Yield assigned to the length of time
money is placed in the CD. This is a financial product commonly sold in
the United States and elsewhere by banks, thrift institutions, and credit
unions. CDs are similar to savings accounts in that they are insured
"money in the bank" and thus virtually risk free.
Club Savings. This is a way to safeguard your money, usually from yourself, so you
have enough funds to spend for gifts or even travel during the holidays.
This is also a way of shielding yourself from a pile of credit card
debt in January.
- Individual Retirement Accounts ("IRA"). If you’re thinking it is time to start saving for retirement, you want to consider an IRA. An IRA is an account in which you sock away money for your future retirement. Depending on the type of IRA you have, you will either have tax-free or tax-deferred growth.
Thursday, February 22, 2018
Anybody that remembers the Great Recession of 2008 can really appreciate our current economy, which seems to be humming along. Unemployment is at a 17 year low and the stock market is shattering records.
Despite these great economic times, we come upon some sobering statistics. Approximately 26% of adults have no savings set aside for emergencies. Another 36% of adults have yet to start saving money for retirement. The overall adult savings rate is 4.4%, a steep decline from the 10% rate in 2012.
The last week of February is “America Saves Week” according to the American Bankers Association. This is an event created to encourage people to automatically save. Below are some ways that you can build a savings habit.
At McHenry Savings Bank (“MSB”), we are a full service financial institution with a complete line of automatic saving products. MSB is a FDIC insured financial institution that provides federally backed insurance up to $250,000 per account owner. Your money is secured and insured. MSB has been serving the banking needs of the residents of McHenry County since 1955. We are local people making local decisions. Call us (815) 385-3000 or visit our website at www.mchenrysavings.com to learn more about saving specials and rates offered.