Frequently Asked Questions

Banking

Are my deposit accounts FDIC insured?

Yes! Each individual customer's account is insured by the FDIC up to $250,000 per insured.

How do I set up Direct Deposit of my payroll check?

After you have opened a checking or/and savings account with Mid America Bank you will receive information about your account, in particular the bank routing number and your account number(s). At any point after you have received this information you can initiate a direct deposit from your employer or another payee. Simply provide the bank routing number, your account numbers(s) and proof of account in the form of a voided check, deposit slip or a signed bank letter verifying your banking information. Your direct deposit will usually begin within thirty days after submission.

What products can I apply for online?

We provide an online application that you can fill out, print and bring into any of our three convenient bank locations. This will speed processing in addition to providing you the personal care you need when selecting the right account for you.

Can I earn interest on my checking account?

Yes! We offer a checking account that pays a market rate of interest. Our account rates are posted on our website.

Can I do all of my banking with you?

Yes! Thanks to the convenience of Direct Deposit, ATMs, our mobile app, and online banking everyday banking activities can be performed on your own time.

Can I look at all of my transactions at any time?

Yes, with Online Banking at Mid America, you have access to your account information 24 hours a day, 7 days a week.

How frequently is my information updated?

Your account information is updated every business day with new transactions that posted to your account the previous day, and some same day transactions.

Are wire transfers possible to and from my checking account?

Yes! Funds can be transferred to and from accounts by wire transfer or via ACH (Automated Clearing House) debits or credits.

How do I make a deposit to my account from a remote location?

You can make a deposit to your account using our mobile banking app, by using Direct Deposit, ACH transactions, mail, or by visiting one of our three convenient locations.

Lending

How do I apply for a loan?

The easiest way to apply for a loan is to speak to any one of our loan officers and they would be glad to walk you through the application process. They can do this over the phone or would be glad to meet with you in person. Our Loan Process page will give you an idea of the information you need to know in order to take the application. 

What kinds of loans does Mid America Bank offer?

We make all sorts of loans but our specialty is real estate lending, particular residential real estate. We have access to a large variety of financing options and one of our loan officers would be glad to help you determine which one is right for you.

How can I get pre-approval to purchase a home?

The first step to getting pre-approved is to take an application with a loan officer. They will verify that you qualify and help answer any questions you have with regard to choosing the right program for you. If you are approved the loan officer will provide you a pre-approval letter for you to use while shopping for a new home.

What are interest rates today?

Interest rates can fluctuate daily so to find out what current rates are you need to first contact one of our loan officers. If you are shopping for a home we can tell what rates are at that time but we can not lock your interest rate until we know for sure when you will be closing.

Will I have closing costs associated with my loan?

There are closing costs associated with any loan. How much those closing costs are varies based on the size and kind of loan you are obtaining. Depending on the type of loan you are getting we sometimes have the ability to pay some or all of your closing costs but it is best to speak with a loan officer to determine whether this is possible in your specific case.

Who will service my loan?

We hold and service most of the loans we originate.  Local servicing is a feature many of our customers enjoy. They know who to call when the questions about their loan or their escrow account. They don’t have to worry about who there loan has been sold to or where to make their payment.

Do I have to escrow for taxes and insurance?

New government regulations require banks to escrow for loans with interest rates exceeding a certain threshold. The majority of our conventional, fixed-rate loans fall below this threshold and do not require borrowers to escrow. That being said, most of those customers choose to escrow for taxes and insurance because it simplifies their lives and is one less thing for them to worry about.

What is a Jumbo loan?

A Jumbo loan is a program for loans starting at $417,000 to finance home purchases or refinancing. Jumbo loans are subject to more stringent underwriting requirements and usually carry a slightly higher interest rate.

Solar

How long is my lease?

The lease is a 15 year commitment but after the first five years you have the option to purchase the system outright and have no more lease payments.

What happens if I sell my house?

If you were to decide to sell your house you have three options: (1) the person buying your home can apply to assume the lease. If they qualify, they can assume your lease where you leave off; (2) you can purchase the panels from the bank and sell them along with your house; or (3) you can terminate the lease by paying the termination fee in the contract and have the panels removed.

Will solar panels make my house worth more?

It’s possible having solar panels on your house will make it worth more but it’s not necessarily the case. When an appraiser values a home they look at other comparable sales. Since solar panels are not a common home feature in this part of the country, there are few comparable sales. When it comes to selling your house solar panels may make your home more desirable to some buyers, particularly if you save your utility bills and can show the savings you have experienced. While it is possible solar panels may make your house worth more we do not promote that as a feature.

Will my payments ever change?

The way our lease is structured your payment will increase once a year throughout the lease. The reason for the escalation is to mimic increasing utility rates and to hopefully allow you to recognize savings in each year of the lease. Your monthly payments are detailed in a 15 year payment schedule outlined upfront when you sign the lease agreement.

Can I receive the federal government’s 30% energy investment tax credit?

There is a 30% tax credit for investments in renewable energy available to the equipment owner. In this program the bank owns the equipment, therefore we receive the tax credit. Structuring it this way allows us to pass our savings on to you in the form of lower lease payments and no required down payment.

Do I own the system at the end of the lease?

Certain types of leases are a lease-to-own agreement but this particular lease is not. This lease structure could be compared to renting property. At the end of the lease the panels are still bank property; however, there is a buyout option throughout and at the end of the lease that we believe is a good deal for you.

What happens if my panels are damaged by wind, hail, fire or other uncontrollable events?

The panels we lease are extremely durable and rated to sustain very high winds speeds and large hail. However, we know this is the Midwest and stormy weather can’t be avoided. As part of this lease, you agree to maintain homeowner’s insurance on your home. Mid America Bank is listed as a loss payee and should there be damage to the property we would be notified.

Will my insurance go up as a result of these solar panels?

In some cases we have seen insurance go up but this has not typically been the case. You should consult with your insurance company to determine whether adding panels to your property will impact your insurance premium.

What happens if my system is defective?

The solar panels and inverters are both under warranty, the solar panels for 25 years and the inverters for 15 years. Should there be problems while the panels are still under warranty there would be a claim filed with the manufacturer.

Who services or repairs my solar panels if there are problems?

The need to service or repair systems is rare. However, as part of this agreement technicians from Cromwell Solar agree to service the panels if necessary throughout the term of the lease.

Health Savings Accounts

How do I qualify for an HSA?

To be an eligible individual and qualify for an HSA, you must be covered under a “qualifying” high deductible health plan (HDHP). Additionally, you cannot be enrolled in Medicare or claimed as a dependent on someone else’s tax return. For details, refer to IRS publication 969, “Health Savings Accounts (HSA).

What are the benefits of an HSA?

You may enjoy several benefits from having an HSA –contributions to an HSA are fully deductible. The interest or other earnings on the assets in the account are tax free and the distributions are tax-free for qualified medical expenses. An HSA is portable, staying with you if you change employers or leave the work force.

What is the difference between the new HSA and the flexible-spending accounts (FSA)?

The tax benefits for both plans are similar. However, the most important difference is that the entire balance of your HSA can roll over from year to year and continue to grow tax-differed. You do not need to have an HDHP to open an FSA, but your employer must offer it. A year to year roll over of a portion of the balance may be offered with an FSA.

Who can contribute to an HSA?

Any eligible individual can contribute to an HSA. For an employee's HSA, the employee, the employee's employer, or both may contribute to the employee's HSA in the same year. For an HSA established by a self-employed (or unemployed) individual, the individual can contribute. Family members or any other person may also make contributions on behalf of an eligible individual.

Are there limits on Contributions?

The amount you or any other person can contribute to your HSA depends on the type of HDHP coverage you have, your age, the date you become an eligible individual, and the date you cease to be an eligible individual. Refer to the enrollment form for current contribution amounts.

How will I pay medical expenses using my HDHP?

You will generally pay medical expenses during the year without being reimbursed by your HDHP until you reach the annual deductible for the plan. When you pay medical expenses during the year that are not reimbursed by your HDHP, you can use the debit card or check that you received from Mid America Bank at the time that you opened your HSA account.

You can receive tax-free distributions from your HSA to pay or be reimbursed for qualified medical expenses you incur after you establish the HSA. If you receive distributions for other reasons, the amount you withdraw will be subject to income tax and may be subject to an additional 20% tax. You do not have to make distributions from your HSA each year.

Do I pay taxes on the balance of my HSA?

An HSA is generally exempt from tax. You are permitted to take a distribution from your HSA at any time; however, only those amounts used exclusively to pay for qualified medical expenses are tax free. Amounts that remain at the end of the year are generally carried over to the next year. Earnings on amounts in an HSA are not included in your income while held in the HSA.

What happens if I want to withdraw the money for non-medical expenses after age 65?

You won’t be hit with the 10% penalty if you use the money for non-medical expenses after age 65, but you would still have to pay income taxes on the money. Keep in mind that you can continue to withdraw money from the account tax-free for qualified medical expenses after age 65.

If I set up an HSA with my employer, what happens if I switch jobs?

You will keep the money in an HSA account even after you leave that job.

What happens to my HSA if I die?

You should choose a beneficiary when you set up your HSA. What happens to that HSA when you die depends on whom you designate as the beneficiary. If your spouse is the designated beneficiary of your HSA, it will be treated as your spouse's HSA after your death. If not, the account stops being an HSA and the balance is taxable to the beneficiary.