|Account Type||Opening Balance||Rate Type||Minimum Balance||Monthly Service Charge|
|Health Savings Account||$100.00||Variable||$100.00||$3.00 per statement cycle plus 25¢ per check if minimum balance is not maintained.|
Health Savings Accounts, or HSAs, were created by Congress to combat rising medical costs by providing an incentive for more consumers to pay "first-dollar" medical expenses. An HSA is like an IRA that is designed exclusively for covering medical expenses incurred by the HSA account beneficiary and his or her dependants.
- Tax benefits
- HSA contributions, by employee or employer are excluded from income
- HSA earnings are tax deferred
- HSA assets are not taxed if used for qualified medical expenses
- Unused HSA assets may be used for retirement; however, they will be subject to a 10 percent penalty until the HSA account beneficiary turns age 65. If not used for medical expenses, they will be subject to income taxes
- Upon death, HSA assets become the property of a named death beneficiary, or of the HSA account beneficiary’s estate. A spouse may treat the assets as his or her own HSA, while non-spouse death beneficiaries must treat such assets as ordinary taxable income.
- $25.00 account set up fee
- Earn interest on all balances
- Unlimited check writing
- Free Debit Card available (only one per account)
- Free Online Banking (NetTeller)
- Free E-Statements
- Free use of Telephone Banking
- Mailed paper monthly statement available
- Account history CD ROM available for a fee
See a Personal Banker for more information regarding:
- Qualified medical expenses
- Government reporting
Contact us for more details.