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  Personal Savings Accounts

We offer three personal savings accounts to choose from—a general account and two specialized accounts.

Our Personal Savings Account Options

 

Regular Savings

A variable-rate account with a low minimum balance requirement to help you start a savings program.

Benefits

• You can get started saving with a small opening deposit.
• This account offers high liquidity so you can access funds easily if an unexpected need arises, and usually without penalty.
• Can be used as an Overdraft Protection account.

 

Features

• Minimum deposit to open: $100
• Up to six free withdrawals/transfers each month and unlimited deposits
• Free ATM Card
• Free Online Banking and telephone banking access
• Make it easy to save regularly by setting up automatic transfers from your APB checking to your Regular Savings account.
• Funds in a Coverdell Education Savings Account can be invested in a Regular Savings account.
• Funds in an IRA can be invested in a Regular Savings account.

 

Interest Information

• Earn interest: the interest rate and annual percentage yield (APY) are subject to change at any time without notice.
• Interest is calculated daily and is compounded monthly.
• Fees could reduce the earnings on the account.
• Earn interest on your daily balance.
•
Regular Savings Interest Rate * Annual Percentage Yield *
Daily Balance 0.10% 0.10%

 

Fees

• Account is free with minimum daily balance of $300 or if you are a minor under 18 years of age.
• $3.00 monthly service fee if daily minimum balance falls below $300.
• A $1.00 excess withdrawal fee will apply.
• Local sales tax may apply to service charges and fees.

 

Coverdell Education Savings Account (ESA)

A Coverdell Education Savings Account (ESA) is a convenient way to begin saving money for higher education expenses down the road.

Benefits

• If the funds are used for qualified education expenses, the earnings on your ESA are usually tax free.
• There are no set up or annual maintenance fees.
• You have the flexibility of investing your ESA funds in several APB accounts.
• You can use ESA funds for education expenses for elementary school through college and vocational school (public, private or parochial).

 

ESA Features

•

You can choose to fund an ESA plan with any of these accounts:
• Minimum deposit to open: $100 for savings option, $500 for the Gold Minor Educational CD, or $2,000 for our Regular CD option.
• Distributions that are used to pay qualified education expenses are generally tax and penalty free.
• Contributions can be made up until the day before the child’s 18th birthday. This age limit is extended for special-needs children.
• The deadline for contributions is the tax return deadline, normally April 15, even if you file for an extension.
• You may want to consult your tax advisor before opening a Coverdell ESA.

 

ESA Contribution Information

• ESA contributions are not deducted from your tax return. The interest earned, however, is tax-free, as long as it is spent on qualified educational expenses.
• Contributions and distributions are subject to IRS rules. Total contributions to an ESA cannot exceed the maximum allowed per tax year, which is usually $2,000. No child can receive more than this amount, from all sources, without incurring IRS penalties.
• There are IRS penalties if withdrawals are made for non-educational expenses.
•

Qualified educational expenses include:

  • Books and school supplies
  • Education-related equipment
  • Uniforms
  • Room and board
  • Tuition and fees
• You can use HOPE or Lifetime Learning tax credits and ESA distributions in the same tax year as long as the funds are not used for the same expenses.
• Permanent Fund Dividends and other unearned income can be used for contributions to an ESA.

 

Can You Contribute to an Education Savings Account?

• Probably, because almost anyone! You and the child do not have to be related in order to make a contribution to an Education Savings Account.
•

Whether or not you can contribute does depend on your modified adjusted gross income (MAGI). Single filers with MAGI above $110,000 and married/joint filers with MAGI above $220,000 cannot contribute to this type of account.

Single Filer Income Tax Return
Less than $95,000—full contribution
$95,000-110,000—partial contribution
$110,000+—no contribution allowed

Married/Joint Income Tax Return
Less than $190,000—full contribution
$190,000-$220,000—partial contribution
$220,000+—no contribution allowed
• An entity (a corporation or tax-exempt organization, for example) can contribute to an ESA as well. There are no income limitations for businesses.

 

Important Facts About ESA Rollovers

• If more than one child in your family has an ESA, but does not use all of the funds, they can be rolled over to another ESA account.
• An Education Savings Account can only be rolled over into another Education Savings Account for another qualified family member.
•

For an ESA, a family member is defined any one of the following:

  • A designated beneficiary’s child or stepchild
  • A designated beneficiary’s brother, sister, stepbrother, or stepsister
  • The father, mother, stepfather, stepmother of the designated beneficiary
  • A son or daughter of the designated beneficiary’s brother, or sister (niece or nephew)
  • The designated beneficiary’s son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law
  • A spouse of any of the individuals named above or the first cousin of such beneficiary.
• Rollovers must be completed within 60 days of the distribution.

 

Interest Information

• Interest is based on the type of account you invest your Coverdale ESA in (see CDs and Regular Savings accounts).

 

Fees

• There are no set up or annual maintenance fees.

 

 

Health Savings Accounts

For Customers with High-deductible Health Coverage
Our Health Savings Account is a great option for better managing your medical expenses.  It offers convenient access as well as many long-term financial benefits.

Health Savings Accounts, coupled with a high-deductible health plan (HDHP), can be a great option for individuals who are self employed and are searching for a way to purchase affordable insurance on their own. It can also be a way for businesses to begin offering or continue offering medical coverage for employees as medical expenses continue to soar. 

Benefits of a Health Savings Account

• You can earn interest, tax free, on money you’re saving for medical care.
• HSAs provide you with tax savings because when you contribute your own funds to your HSA, your taxable income is reduced by the amount of the contribution.
• You can roll over unused HSA funds from year-to-year, and you retain ownership of the account even when you change jobs.
• The money you set aside in your HSA, and don’t use, grows tax-deferred.  When you reach the age of 65, you can continue to use the funds, tax-free, for medical expenses, but you also have the option of withdrawing funds, penalty free, for any purpose and paying taxes on those funds at your normal tax rate.
• You can order a separate HSA Visa® Check Card that you can easily identify as a Health Savings Account access card.
• You will receive separate checks to access your HSA for easier, more accurate recordkeeping.

 

HSA Features

• Money deposited into your HSA, as well as the interest you earn, can be withdrawn tax-free when used to pay qualified medical expenses.
•

You must meet certain qualifications stipulated by the federal government in order to open and contribute to an HSA:

  • You must have a qualified high-deductible health plan (HDHP).
  • Generally, you cannot be covered under any health plan that is NOT an HDHP (exceptions include insurance that covers accidents, disability, dental care, vision care, long-term care, and certain other “permitted” insurance).
  • You cannot be enrolled in Medicare.
  • You cannot be eligible to be claimed as a dependent on another person’s tax return.
•

A health plan is considered a qualified HDHP if it satisfied both an annual deductible and a maximum out-of-pocket requirement.

Year Annual Deductible Annual Out-of Pocket Costs
Individual:    
2012 $1,200 or more Maximum of $6,050
Family:    
2012 $2,400 or more Maximum of $12,100

 
• A broad range of medical expenses are covered under HSA regulations. They are outlined in the IRS publication 502, which can be accessed from our web site.
• If HSA funds are withdrawn for non-medical purposes, those funds will not only be taxable, but they will also be subject to a 10% penalty in most cases.  Exceptions are made if you become disabled or reach the age of 65.
• Minimum opening deposit:  $0
• A special, free Health Savings Visa® Check Card is available so you can pay medical expenses conveniently.
• You will receive separate checks for your Health Savings Account, so you can keep track of all account expenditures.
• Free Online Banking access.
• Monthly account statement.

 

Important Facts About HSA Contributions

•

You, your employer, and/or another individual can make contributions to your HSA, but the total contribution cannot exceed the allowable amount.

Year Maximum Annual Contribution
Individual:  
2012 $3,100
Family:  
2012 $6,250

 
• A one-time contribution can be made from your IRA, up to the allowable maximum annual contribution.
• If you become eligible for an HSA at any time during the year, you can make the full-year contribution as long as you remain eligible through the following calendar year.

 

Catch-up Contributions

• Individuals who are 55+ years and who meet the other qualifications for contributing to an HSA, are eligible to make additional catch-up contributions.
• Catch-up contributions are allowable, each year you remain eligible for the account.
•

If both spouses are eligible, both may make catch-up contributions.

Year Maximum Catch-up Contribution
2012 $1,000

 

Interest Information

• The interest rate and annual percentage yield (APY) are subject to change at any time without notice.
• Interest is calculated daily and is compounded monthly.
•
Average Daily Balance Interest Rate Annual Percentage Yield
$0-2,999.99 .04% .05%
$3,000-9999.99 .04% .05%
$10,000-24,999.99 .15% .15%
$25,000-49,999.99 .20% .20%
$50,000+ .30% .30%

                 

Fees

• There is a monthly fee of $3.00 for daily balances below $3,000.
• There are no set up fees, per-item fees, or annual maintenance fees.
• We don’t charge you a fee for accessing ATMs with your HSA Visa Check Card, unless you use our ATM in Hoonah.  If you use a non-Alaska Pacific Bank ATM, you may be charged a fee by that ATM provider.

 

 



* Rates quoted are effective as of 02/05/12. Posted interest rates and Annual Percentage Yields are subject to change at any time without notice.
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