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Monday, September 25th

Health Savings Accounts (HSA)

Home Personal Banking Health Savings Accounts (HSA)

Health Savings Accounts (HSA)

A Health Savings Account (HSA) is a versatile savings account that works in  conjunction with a High Deductible Health Plan (HDHP) to pay for qualified expenses of an account holder. HDHP is a popular type of coverage in many of today’s employee benefit programs. An HSA is a personal investment account offering a great deal of flexibility in using the assets. The funds in the account can be used to pay expenses not normally covered by your health insurance—but, on a tax-free basis.

The account holder has complete control over it. You have the freedom to use HSA funds for out-of-pocket expenses at the health provider of your choice.  If you are currently enrolled in a HDHP, opening an HSA is a great way to cover any medical needs that don’t meet the large deductible requirements.

You save money with a more cost-efficient insurance program and still enjoy
high-quality health coverage.

Who is a qualified individual?

  • covered under an HDHP (High Deductible Health Plan)
  • not covered by another health plan that is not an HDHP
  • not enrolled in Medicare
  • not eligible to be claimed as a dependent on another individual's federal income tax return

What is a qualified expense?

The determination of a qualified expense is the sole responsibility of the IRS. Covered items are defined by IRS code 213(d) and are listed in IRS publication 502 and 969. Please visit for a more detailed list of qualified expenses.

What are the benefits?

  • HSA checks
  • convenient debit card
  • monthly statements to assist you in tracking your medical expenses
  • online access to your account
  • no transaction limitations
  • no monthly fee for the first 12 months. After 12 months, a service charge of $2.50 will be imposed every statement cycle unless a minimum daily balance of $1,500 is maintained.

Interest earning account on balances of $500 or greater.

Health Savings Accounts are subject to limitations and/or penalties imposed by the Internal Revenue Service. Please visit

For more information, please contact one of our Personal Bankers.