Health Savings Account
With healthcare costs rising, it's no wonder that you don't run to the doctor every time you get the sniffles. But if you feel like you're coughing up a lung, you ought to be able to get some medical advice without breaking the bank. That's where a tax-free* HSA comes in.
A Health Savings Account enables you to set aside funds for qualifying medical expenses so that when you need to see a doctor or pay for medication, you have the money to do it. HSAs offer a way to set aside funds to pay for tomorrow's medical expenses.
- Tax-free earnings*
- Interest bearing account
- Account set-up at no charge
- No monthly service fee
- Interest compounded and credited monthly
- Money is portable
- Free bank drafts
- Free debit card usage
- Monthly statements
- FDIC insured
- No minimum deposit to open
*When used for qualified medical expenses.
- More Information
It's a good idea to combine a qualified a Health Savings Account (HSA) with a High Deductible Health Plan (HDHP). The HDHP covers catastrophic illness and injury, while the HSA covers routine expenses until the deductible is met.
HSAs provide you with tax savings both when you contribute the funds and when you use the funds. Annual contributions reduce your taxable income and your qualified medical expenses are never taxed. All of the money you set aside in your HSA grows tax-deferred until age 65, when funds can be withdrawn for any non-medical purpose (ordinary tax applies), or tax-free when used for medical expenses at any time.
When comparing other consumer-driven health care options to an HSA, an HSA provides the most flexible and long-term investment opportunities to consumers. Unlike most consumer-driven health care options; HSAs roll over from year to year, the money belongs to the individual and is portable if employment changes, availability is not limited by employer size, and funds can be used for non-medical purposes after age 65 (ordinary tax applies).