5 Tips in 5 Minutes: Health Savings Accounts

By: Michelle Herrly, PHR, VP/Human Resource Manager, Fargo, ND 

With the new Health Care Reform Act taking place, we’re starting to hear more about Health Savings Accounts (HSAs), but many are still unsure of what an HSA actually is and what the benefits are. We broke down the top 5 things you need to know about HSAs:

HSA 21. What is an HSA? 
An HSA is an account that is set up like a personal savings account, only the money set aside is used for qualifying medical expenses. The purpose of the HSA is to help defray the out-of-pocket cost until the deductible in your High Deductible Health Plan (HDHP) is met.

2. Is an HSA right for me?
First things first, eligibility: In order to be eligible for an HSA you must be under the age of 65 and enrolled in a HDHP, which generally offers its own benefits. These may include things such as lower premium costs, a one calendar-year deductible per family, and 100% payment of covered expenses after your deductible is met.

3. What are some of the benefits of HSAs?
HSAs offer many benefits to the account holder, including:

  • You (not your employer or insurance company) are the owner of the funds in your HSA and you decide how to best utilize those funds for qualifying medical expenditures.
  • Your employer may make a matching contribution to your HSA, you own the account and the money is yours even if you change jobs.
  • You control your account funds and therefore, you can shop around for the best quality and cost of your health care.
  • Contributions to HSAs are generally tax deductible from your gross income, the funds in the account may grow tax deferred, and the account holder is usually not taxed on dollars that are used for qualified medical expenses. Everyone’s tax situation is different and therefore you should consult a tax preparation professional about how an HSA may affect you and your tax liabilities if you have any questions.
  • Your HSA dollars remain in your account and roll over from year-to-year (no use it or lose it).
  • HSA dollars can be used for a wide variety of medical expenditures, sometimes even including fuel costs and hotel stays where applicable. You should visit http://www.irs.gov/file_source/pub/irs-pdf/p969.pdf for more information on what is considered a qualifying medical expenditure.
  • You may be able to use your HSA funds for Medicare premiums and out-of-pocket Medicare expenses.
  • After age 65, you may be able to use your HSA dollars for living expenses.
  •  …And more!

3. Are there any disadvantages of an HSA?
Like any health care option, HSAs have both advantages and disadvantages. As you weigh your options, be sure to keep in mind the following:

  • Illnesses can be unpredictable, making it hard to accurately budget for health care expenses.
  • Information about the cost and quality of medical care can be difficult to find.
  • Some people find it challenging to set aside money to put into their HSAs. The elderly and those more susceptible to illness may not be able to save as much as younger, healthier people.
  • Pressure to save money in your HSA might lead you to not seek medical care when you need it.
  • If you take money out of your HSA for non-medical expenses, you’ll have to pay taxes on it.

5. How do I get set up with an HSA?
If your employer does not already offer an HSA option for you, you can set one up at First International Bank & Trust. Remember that you must be under age 65 and enrolled in an HDHP. If you have a spouse who uses your insurance as a secondary coverage, he or she must also be enrolled in an HDHP. The HDHP must be your only health insurance – you can’t be covered by any other health insurance excluding dental, vision, disability or long-term care.

Stop in today to set-up an account or give us a call with any questions you have: 800-359-8092.


Michelle has more than 18 years of HR management experience working in both large and small companies across multiple industries. Michelle specializes in employee relations with experience in all areas of HR management including recruiting, benefit administration, employment law, international HR, mergers and acquisitions, compensation planning and project management.

Michelle is a member of the Society for Human Resource Management (SHRM), Fargo-Moorhead Human Resource Association (FMHRA) and Fargo-Moorhead Association for Training and Development (FM-ASTD).

In her spare time, Michelle enjoys spending time with her husband and daughter, scrapbooking, music, reading and traveling.

First International Bank & Trust, Member FDIC

Have a merry little (affordable) Christmas

By: Chelsea Marcyes, Fraud Specialist, Staples, MN, First International Bank & Trust, Member FDIC

Notice that summer holidays are more relaxed? We focus on making great memories—in the back yard, on the water, at the park, with great food and simple fun like sparklers. Even travel seems less stressful.
Why can’t Christmas be more like that?
It can, with a little planning that starts now.
Like you, every holiday season, my husband and I balance the demands of gifts, travel and party hosting. Each year, those costs increase—both in terms of time and finances. Yet the last few years, planning has made our winter holidays more enjoyable.

Family at Christmas

Here are four tips to help make Christmas and winter holidays less stressful:

1.  Set Your Budget
Early on, about six months before the holiday season, we look at our discretionary income. Discretionary income is the amount of money that a household has left for spending, investing or saving after taxes and needs (such as food, shelter and clothing) have been paid. From this, we determine how much we can feasibly spend on gifts, travel and hosting in November and December.

2.  Make a List
Create a shopping plan and be a savvy consumer. This is a way to maximize your spending power and overall spend less. For instance, when hosting holiday meals, take a headcount of actual attending guests. This way you don’t overbuy and waste money on uneaten food.

3.  Get Creative
Consider making homemade gifts instead of buying. This is especially helpful for tackling the ever-growing list of people on your Christmas gift list. My kids and I love to make brownie recipe jars for their teachers. My neighbors always get a batch of my famous cookies tucked in a Christmas tin from the dollar store. This year, I found a festive ‘tea bag’ wreath I want to create for my girlfriends.

Tea Wreath

(Photo credit: http://redredcompletelyred.blogspot.com/2010/12/tea-wreaths.html)

4.  Start Saving Now
Saving early (now!) prevents scrambling to find funds when you realize there are only two months left until Christmas. When I started at the bank, I opened up a ‘Christmas Club Savings Account.’ It’s an account from First International Bank & Trust that helps you save for the holiday season.

Here are the nitty-gritty details: There is no minimum deposit required to open the account. You can make as many deposits as you like for as much or as little as you wish. Here’s the catch (and the part that helps you save), withdrawals are not allowed until maturity, which is November 15 of each year so the term can vary depending on when you open the account. At maturity, the balance in your account must be transferred to another account within First International Bank & Trust. Check out the full details and disclosures here.

It’s an easy way to save for that perfect Christmas! Want to make it even easier? Set up automatic transfers from your paycheck or checking account so that it saves money without you having to remember. Open one at your local branch or visit us online to open a ‘Christmas Club Savings Account.’

With an action plan in mind for taking on the holiday season, you’ll have more time to worry less, live first and spend time making great winter holiday memories, too. Sparklers optional!

Chelsea M.Chelsea is a Fraud Specialist at our Staples location. She enjoys working with the community to educate them about fraud prevention and education. Her family includes her husband Lonnie, their two children Jackson (7) and Bentley (3), two dogs Carly and Hailey, and two horses Elsa and Woody. In the summer, they enjoy gardening, canning and riding horse. As a family, they love to watch football games … especially when the Broncos are playing!

Apply for our $3,000 Live First Community Grant!

Every day we work to help our customers Live First. We strive to provide convenient services that meet all of your banking needs so that you have more time to focus on the things that matter, like family and community.

We value the communities in which we live and work and know you do too! That’s why we’re inviting you to apply for our Live First Community Grant, which awards $3,000 to a project or cause that makes a difference in your community!

Click here to apply for the Live First Community Grant!

Many of our customers and community members are already actively involved with great causes that could qualify for the Live First Community Grant:

Community GivingHow Winners are Chosen
Our team at First International Bank & Trust will choose one project that we feel makes the biggest impact on their community. Even if your project isn’t awarded the $3,000 grant, you still have another chance to win. We’re awarding three runner-up grants for $500 each to the projects that get the most votes from our Facebook fans!

How to Apply
Here’s what you’ll need to apply: An idea for a project or event! How would you use a $3,000 grant to benefit your community? You’ll need to tell us:

  • A name for your project. This is the part people will see when they vote, so make sure it’s catchy and descriptive.
  • How the project will help your community. Be specific!
  • Who will benefit.
  • Organizations that would be part of your project (for example, a 4H chapter, a high school club or your local animal shelter).
  • Budget breakdown of how you would use the $3,000 (and how you would pay for any costs beyond $3,000).
  • The date(s) and location of where your project would take place.
  • A photo that represents your project. This can be anything that captures the spirit of your idea. People will see the photo when they go to vote.

Group Community Giving

Once you’re ready to apply, visit our Facebook page. You can also view the official rules and who’s eligible.

Then, share the entry on your Facebook page so you can ask your friends to vote for you! Just click the “Share” button on your entry.

Share Entry

Come back to the page and share your entry any time you want to remind your friends to vote. Just click View entries, find your own entry, and then “Share.”

Complete Form

Write a quick note telling your friends to vote, and click share!


Don’t forget to spread the word in other ways, too. You can put up posters, send emails and ask your friends to do the same!

Good Luck!
Best of luck to all applicants – we can’t wait to see your ideas! Applications and voting close at 12:00 p.m. CST on July 31, 2014 – so get started now!

First International Bank & Trust, Member FDIC, EHL

Top Budget Tips for New Grads

A mother embraces her daughter on her graduation  day.

Are you a recent graduate? Do you know someone who is? Maybe it’s your daughter, nephew, cousin, friend; whoever it is – we have put together helpful advice for the next stage in their life. Graduation is an important celebration that marks a milestone in your life. It’s a transition from a period of education into a new stage of personal growth. Make the most of this experience by looking towards the future and considering your finances.

No matter what stage of life you are in, there are important elements to keep in mind.

Graduating High School – and Heading to College

Here you are – a high school graduate. You have worked hard for this and your big day has finally come and passed. Now what? If you are like 65.9% of high school graduates in America, you are headed to an institution of higher education. Whether that’s a state college, private university, technical school or other place of education, you have chosen to continue your education. If this is your path, consider this when thinking of your finances:

  • Cost of Attendance

We all hear about how expensive college is, but do you know what elements contribute to the cost of attendance? While tuition may be the bulk of your expenses, additional costs for books, meals and more add up! Here is a breakdown of common costs to budget for and how to potentially lower your out of pocket expense:

      • Tuition – The cost of taking courses varies by school. Seek out scholarship opportunities in your community and through the school.
      • Room and board – Lodging and food costs vary by school. Consider living off-campus your second year to save on living expenses.
      • Books and school supplies – Books and school supplies can be expensive and depend on which course of study you are pursuing. Look into purchasing used books or renting books for the semester.
      • Fees – These vary by school, but can include activity fees and parking fees. Fees are hard to avoid, but look at lowering the cost of these by purchasing a parking pass that is a little further away from campus.
      • Equipment and room materials – This category can include a computer, printer, furniture, microwave, fridge, sheets, towels, etc. Save money by asking your school if they provide printing to you as a student or if they have fridges that you can rent for the year.
      • Travel and miscellaneous expenses – This includes daily commuting to class and travel during holiday breaks. This also can include clothing, mobile and other general living costs. If you travel home over break, one way to save is to see if there are other students who would be willing to carpool with you.

Graduating High School – and Joining the Workforce

You’ve done it – graduated high school. Feeling both relieved and eager, you are ready to prove yourself in the workplace. You are not alone – about 34% of high school graduates in America decide to join the workforce or pursue other non-educational opportunities after completing high school. Don’t let your hard earned money go to waste, keep this financial tip in mind:

  • Emergency Savings

In case of an emergency, or another instance in which you may not be receiving your usual paycheck, it is recommended to keep an emergency savings fund. The general guideline is to have three months’ pay so that you can cover your living expenses until you are back on your feet. To calculate your monthly expenses, use this list of common items:

      • Mortgage/Rent Payment
      • Loans: Car, Student, Credit Card
      • Insurance: Auto, Health, Life, Home/Renter’s
      • Utilities: Gas, Electric, Water, Garbage
      • Food
      • Gas
      • Child Care
      • Cell Phone
      • Cable/Satellite TV
      • Internet Provider
      • Wellness Membership

Graduating College – as a Young Adult

First high school, now college. Congratulations! You have joined the ranks of the over 30% of Americans who hold college degrees. Now it’s time to put that degree to work and begin your career. Before you hit the ground running, take a couple minutes to think through your finances:

  • Student Loan Debt

After you graduate from school, it is important to take a look at the amount of student loan debt you have acquired. It can be overwhelming if your loans are with different lenders, who will all be contacting you to get your payments started. Looking at the amount as a whole can be a daunting task as well. Coming to terms with the thought of paying off your student loan debt doesn’t need to be a painful experience. There is no need to fear, as you have plenty of options. First, see if your lenders offer income-based payments. These are designed to reduce monthly payments based on your annual income. Another option is to consolidate your student loans. Through consolidating, you have one automatic payment amortized over a longer period that usually has a lower interest rate. For more information on repaying your student loan debt, visit the Federal Student Aid website. Keep in mind that once you get going in your career, hitting student loan debit hard will become easier.

  • If you are a North Dakota resident: The Bank of North Dakota recently announced a new loan consolidation program open to residents of North Dakota, entitled ‘DEAL One Loan’. To find out more, visit BND’s website. They offer options for non-North Dakota residents as well.

Graduating College – Later in Life

It takes dedication to return to college and graduate – your passion is what has taken you this far. With work experience under your belt, and now a college degree, the world is yours to take. Keep your traction going, with this financial plan:

  • Retirement Plan

On average, college graduates make about $17,500 more annually than those with high school diplomas only. By leveraging your new-found degree to increase your earnings, you can then begin investing towards your retirement.

To get an idea of how much you need to be investing, first estimate roughly how much money you’ll need to live on in retirement. Once you have this, calculate what will be available to you from other sources, other than your savings. This can include Social Security, pensions and 401(k) earnings. This will give you a realistic idea of what you still have left to save. After this, make goals to reach the amount you’ll need to make up the difference.

If you choose to invest in an IRA, contribute the maximum amount. For contribution limits, visit the IRS website here.

If you choose to invest in employer-sponsored plans, such as a 401(k), contribute the maximum amount to your 401(k). For contribution limits, visit the IRS website here.

Time to Shine

We know that these aren’t the only options after graduation; maybe you are joining the army, traveling with the peace corps or going to graduate school. Whatever path you choose to take or wherever life leads you – remember to consider your finances.

First International Bank & Trust, Member FDIC, EHL

5 Minute Estate Planning: 5 Things to Think About Now

By: John Stibbe, Wealth Manager, Fargo, First International Bank & Trust

You may be surprised to hear that estate planning is not just for the wealthy.

Ask yourself:

  • Do I own a home?
  • What about a car?
  • Life insurance?
  • Furniture?
  • A checking and/or savings account?
  • Investments?

You most likely answered yes to more than one of the above and therefore, are the owner of an estate.

The reality is that no matter your net worth, it’s important to have a basic estate plan in place to ensure your estate and financial goals are met and carried out as you wish after you die.

Estate planning involves much more than the distribution of your personal possessions. Instructions for your care if you become disabled, providing for family members with special needs, the transfer of your business at retirement, disability or death and the minimization of taxes, court costs and legal fees are all elements and benefits of estate planning.

Estate planning is an on-going process. So whether you already have a plan in place or are just getting started, here are some things to keep in mind:

1. The difference between a living will and living trust.
A living will and a living trust are both important pieces of estate planning that serve a similar purpose, yet are quite different from each other.

A living will is a legal document that becomes effective if you become incapacitated and are unable to make responsible health-care decisions for yourself. With a living will, you are able to outline in the documents what type of medical services you want to receive or not receive if you are terminal and cannot speak for yourself.

A living trust is a revocable trust that can be used to manage assets during your lifetime as well as at and after your death. It is one of the most flexible tools available in estate planning and provides a tool for people to manage their assets during life, have the trustee continue to manage the assets in the event of incapacity, as well as effectively distribute or manage assets after death.

2. The importance of Power of Attorney.
When you create and sign a durable power of attorney, you are giving another person legal authority to act on your behalf. An important part of power of attorney is designating an agent to carry out your wishes. A family member or trusted friend usually acts as agent, but you can choose anyone.

3. If you don’t have a plan, your state has one for you.
If you do not have an estate plan and become incapacitated, the court will have control of how your assets are allocated depending on the laws and regulations of your residing state:

North Dakota

4. Where to seek help.
Professional wealth management advisors are available to help you with your estate planning needs. Our team has expertise in the areas of personal trusts, revocable living trusts, conservatorships, estates and probates, accounts for minors and irrevocable trusts. For questions or help with your estate planning needs, please call 701.298.4100 to set-up an appointment or visit our website to learn more.

Wealth Management Team

5. Plan now and have peace of mind.
Being proactive and creating a plan now can help give you and your family peace of mind. As you adapt to life changing events throughout your life, so too can your will. Keep in mind that changes can be made to your estate plan at any time.

Trust and wealth management products offered by First International Bank & Trust are not FDIC insured.

John has more than 25 years of experience in the financial services industry and specializes in personal trust and investment management. John holds degrees from both North Dakota State University and William Mitchell College of Law.

In his spare time, John enjoys spending time with his family, water sports, snow skiing and Bison football.


Our money saving expert (and mom of four) shares how to get your kids saving

By: Julie Standlee, Deposit Operations Officer, Assistant Vice President, Arizona, First International Bank & Trust

It’s a question we hear so often in all our locations: How to get kids saving money now? As a deposits officer and a parent, here are some guidelines that have helped our customers—and our own family of four kids, two boys and two girls, ages 2 – 10, including one who would prefer to spend every nickel, and one who would proudly save every penny.

Start early
Growing up, my mom was a bank teller, and she took care of the billing for my dad’s business. He’d started a small business after he served in the military. From a very young age, my mom took my sister and me along for weekly trips to the bank. My parents also helped us set up our own savings accounts.

We encourage parents to bring their kids in to the bank. Meet with a banker to open their accounts. Teach them how to fill out deposit slips. (You would be amazed at the young adults we see who have no idea how to do this!)

Standlee Kids

Julie and her husband have four kids, who they are helping learn to save money.

Get in the Kid’s Club
Open a savings account for each of your children, such as what we call a Kid’s Club Account. It has no minimum balance, no fees and the individual can keep it open until they reach age 24. That’s a great time for us to meet with young adults, too, since they’ve likely started a career and all that includes—and they are getting lots of credit card applications in the mail. We like to guide them through this new level of financial responsibilities and opportunities.

Rewards now—and later
Teach kids to save by saving. I know that sounds simple, but it also is simple. For example, when our kids get money (birthday gifts, allowance, money for chores), they deposit 75 percent into their savings accounts; they keep 25 percent.

Cash in
Kids are literal. We encourage parents to bring checks and other money in to the bank. Fill out a deposit slip, have the teller cash out the entire amount and have the kids count out the actual bills to deposit some and pocket some. This gets them accustomed to interacting with bankers—and real cash. We don’t use ATMs or online systems; once they know the basic principles, they will understand what is happening via technology as they use those tools to manage their finances later in life.

Growing up green
As kids’ financial needs change, keep them involved in the decisions. We don’t recommend debit cards until age 16. If kids do need a larger amount of money, such as for a school trip, we recommend gift cards like our Visa gift cards. They are re-loadable, and safer than carrying cash or good old traveler’s checks.

Beyond savings
Besides these guidelines, we encourage parents to involve kids in other family financial matters, as age appropriate. For instance, when they need to do a fundraiser for school, sports or activities, have them help keep track of the details. Show them the costs involved in participating in sports and activities so they understand the value of money.

Above all, teach kids to enjoy the rewards of money now—and the rewards of saving. Enjoy the moment, yet plan and look ahead, too. That seems like a good parenting principle for other issues, as well!

All our bankers are well-versed in Kid’s Club Accounts and other options for youngsters—and we love seeing your kids in the bank. Bring them in for a visit, a treat and a lesson on filling out a deposit slip!.

Julie StandleeJulie grew up in Burbank, Calif., and started her career at Warner Brothers there. Julie relocated to Arizona 15 years ago, and after time at a few other companies, she wanted to get back to working for a community bank and joined First International Bank & Trust, where she has now been for more than six years. Julie and her husband, who also works in financial services, cheer on their four kids in various sports and activities, while teaching them how to save money.

Singing for your supper and other Season to Share traditions

By: Gretchen Stenehjem, Marketing Manager, First International Bank & Trust, Member FDIC

What’s your favorite holiday tradition? Like you, our family has many, and in this season of sharing, we invite you to share yours. Comment here, or on our Facebook page.

Meanwhile, here are a few Stenehjem family holiday traditions:

On the first day of Christmas…
My mother gave me two sets of “12 Days of Christmas” glasses. There is one day or verse of the song depicted on each glass. So on Christmas Day, we sing the entire song: You sing what is on your glass! We have many friends who are like family, and they spend Christmas with us—including singing their verses. Also, as our kids have grown up and we’ve added family members, I hear there has been a bit of panic on which verse a new spouse may get. We all have fun memories of that tradition.

Stenehjem family

Cookies, of course
The neighbors tell me they love the homemade sugar cookies I bake, decorate and deliver to them. If you’d like to try it, here’s the recipe:

Sugar cookies

1 c. butter

1 c. white sugar

2 eggs

1 tsp vanilla

3 c flour

½ tsp baking powder

½ tsp salt

Preheat oven to 350 degrees.  Cream together butter, white sugar, eggs and vanilla.  Add flour, baking powder, baking soda and salt.  Mix together.  Dough will be stiff.  Roll out the dough on the countertop or board.  Use Christmas or holiday cookie cutters to cut the dough into shapes.  Bake for 8 minutes on parchment paper.


2 c. powdered sugar

1 tsp vanilla

Whipping cream (I never measure)

Mix all ingredients together until the frosting is stiff and easy to spread on the cookies.

Oh, Christmas tree
When our four kids were younger, we all slept under our Christmas tree: sleeping bags all over the living room floor. A lit, decorated tree looks so magical to kids, and we all have fond memories of those nights.

Luke and lutefisk
Christmas Eve always includes a traditional Norwegian dinner, with oyster stew, lefse, meatballs, scalloped corn and of course lutefisk. I’m in charge of that! Before we serve dinner, the head of the family reads Luke’s version of the Christmas Story from the family bible. Steve does that now, just as his father did before him.

Winter picnics in the Park
Speaking of Steve, he grew up with the tradition of a family picnic in the North Unit of Theodore Roosevelt National Park sometime in December. We’ve tried to continue that. We put a tarp over the shelter, build a roaring fire in the shelter fireplace and, as Steve’s dad used to say, “enjoy some libations.” That keeps the -20 degree temperatures bearable! Of course we bring most foods already prepared, but we do try to grill steaks on the grill. The Park is a very different place in winter, and it’s wonderful to enjoy the beautiful scenery and wildlife.

This year, we leave right after Christmas to celebrate a wedding in Arizona. But like you, I’m hoping we can fit in most of our most treasured holiday traditions. Please, share yours!