CDs, IRAs, & HSAs
Certificates of Deposit
Choose from a variety of Certificates of Deposit with various terms that may offer a higher yield than other savings instruments, along with the safety and security of FDIC insurance.
Individual Retirement Accounts
Individual Retirement Accounts (IRAs) help you build retirement income with the benefit of deferred taxation. In addition, your IRA contribution may be tax-deductible. (Consult a tax advisor.) 1st United Bank has two IRA options – Certificates of Deposit and IRA Savings – both with competitive rates.
Health Savings Accounts
Health Savings Accounts (HSAs) pack a protection punch. Not only do they enable you to save money for medical expenses - they put money in your pocket as well through tax savings.
1st United Health Savings Accounts
Minimum opening balance - None
Minimum balance required to avoid service charges - None
Interest - Yes, tiered (Rates are subject to change. See a banker for current rates.
Features:
Minimum balance required to avoid service charges - None
Interest - Yes, tiered (Rates are subject to change. See a banker for current rates.
Features:
- Free debit card
- Free Internet banking
- Direct deposit
- 24-hour phone banking
- Set-up fee of $10- waived with a direct deposit
- Closing fee - $25
Who can have an HSA?
To qualify, you must:
- Be under age 65 and have coverage under an HSA-qualified, high-deductible health plan (HDHP)
- Have no other "first-dollar" (the deductible amount you pay for designated medical care) medical coverage (excluding injury, accident, disability, dental, vision, and long-term care plans)
- Not be enrolled in Medicare
- Not be claimed as a dependent on someone else's tax return
Who funds the HSA?
You, your employer or both of you can contribute funds to your HSA. However, the amount you contribute each year is limited, and contributions stop when you become enrolled in Medicare. The good news is that you can continue to use funds in the account to pay for medical expenses on a tax-free basis.
Why have an HSA?
HSAs offer tangible benefits. Here are just a few:
- Security - In combination, your health insurance plan and HSA protect you against high or unexpected medical bills.
- Affordability - You may be able to lower your health insurance plan premiums by switching to a higher deductible amount.
- Flexibility - You can use the HSA to pay for medical expenses your primary insurance plan may not cover such as:
- Health insurance costs if you're unemployed
- Medical expenses if you're post-retirement but pre-Medicare
- Out-of-pocket expenses excluded by Medicare
- Long-term care insurance and expenses
- Savings - You can save money in the account for future medical costs and grow funds in the account through interest earned.
- Control - You make all account decisions including:
- How much to put into the account
- Whether to use the funds for current or future medical expenses
- Which medical expenses to pay from the account
- Where to hold the account, e.g., 1st United Bank
- Portability - You can take the account with you even if you change jobs, change medical coverage, become unemployed, move out of state, change your marital status.
- Ownership - Funds remain in the account, just like an IRA. There are no "use it or lose it" rules for HSAs.
- Tax savings - HSAs give you triple tax savings:
- Tax deductions when you contribute to your account (If you make a contribution to your HSA, you can deduct the amount on your federal tax return - even if you don't itemize deductions.)
- Tax-free earning on the account
- Tax-free withdrawals for qualified medical expenses