Federal regulations allow no more than six preauthorized transfers per month on savings accounts or market interest accounts, including a maximum of three drafts. There is no regulatory limit to the number of withdrawals made in person or at the ATM, however, you may be subject to excessive withdrawal fees (see below). Interest is compounded and paid monthly on the collected balances on all interest-bearing accounts. Interest rates and Annual Percentage Yield are subject to change without notice.

At First Interstate Bank, we offer a variety of savings plans insured for up to $100,000 by the Federal Deposit Insurance Corporation (FDIC).

Recent legislation in Montana has opened the doors to a new tax incentive program called Montana Medical Savings. The program was designed to help you save money for medical expenses and long-term health care and provide a tax deduction from your Montana state income taxes.

How does it work?

Any Montana resident can open a Montana Medical Savings account and deduct up to $3000 per year from your Montana Individual Income Tax form. If you're married, your spouse can also establish an account and you can jointly claim up to $6000 combined deduction.

Eligible Medical Expense

Eligible medical expenses are defined under Internal Revenue Code Section 213(d). These are the same expenses allowed as an itemized deduction for federal income tax purposes. Within certain limitations, the contributions to a Montana Medical Savings Account will be tax free as long as the account is used for eligible medical expenses. Withdrawals made for anything other than eligible medical expenses are subject to a 10% penalty of the amount withdrawn and cannot be reduced from income. However, non-eligible withdrawals made on the last weekday of December are not subject to the penalty, but must be taxed as ordinary income if previously deducted.

How do the funds get disbursed?

You can make up to six withdrawals per month for qualified medical expenses or long-term care. Withdrawals can be made directly through the teller line or by calling our Day & Night Telephone Banking center to transfer funds to your checking account. (Excess withdrawal fees may apply.)

Are there service charges on my account?

Some minimum balance requirements and fees may apply. Please refer to our fee schedule.

What interest rate do I earn?

Your account earns a money market rate of interest and changes periodically. The Montana Medical Savings Account features interest rate tiers that increase your interest rate as your account balance grows.

What if the funds are not used up during the year?

Any unused funds can be carried over and accumulated for future needs.

Are Montana Medical Savings contributions deductible on my federal income tax?

No. Contributions are only deductible on your Montana state income tax.*

How do I open an account?

Visit a personal banker at any First Interstate Bank office in Montana.

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