Health Savings Accounts (HSA)

Account Type  Opening Balance  Rate Type  Minimum Balance  Monthly Service Charge 
Health Savings Account  $100.00  Variable  $100.00  $3.00 per statement cycle 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 dependents.

  • 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‚Äôs 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
  • Eligibility
  • Contributions/Distributions
  • Government reporting

Contact us for more details.