Health Savings Accounts (HSA)
It seems as if healthcare is getting more expensive all the time. Premiums are going up and employers are struggling to continue to offer affordable medical plans as part of a benefits package to their employees. As an alternative, more and more employers are choosing to offer their employees a High Deductible Healthcare Plan (HDHP). For those who have an HDHP, a Health Savings Account may be just the answer to managing rising costs.
What is a Health Savings Account?
Consumer-directed health care combines an affordable HDHP with a tax-favored health savings program, referred to as an HSA.
Benefits of a Health Savings Account
- Reduces health care expenses
- Tax-sheltered bank account
- Unused funds and interest carried over year to year without limit
- Employer contributions qualify as an employee benefit for tax purposes
Health Savings Account1
|Minimum Required To Open||Interest Crediting Frequency||Balance Required for Stated Rate||Variable Interest Rate*||Annual Percentage Yield|
|$50.00||Monthly||$20,000 & Over||0.85%||0.85%|
$2.00 monthly fee if daily minimum of $1000 is not met (waived first 6 statement cycles). Normal fees listed in Fee Schedule (PDF) apply (NSF, Stop Payment Fees, Dormant Fees, etc.). Must enroll in eStatements within first 30 days of account opening or a fee of $3.00 will be assessed. At our discretion we may change the interest rate and annual percentage yield (APY) on your account at any time. If you close your account before interest is credited, you will not receive the accrued interest. We use the daily balance method to calculate interest on your account. This method applies a daily periodic rate to the principal in the account each day. Interest begins to accrue on the business day you deposit non-cash items (for example, checks).