Health Savings Account (HSA)
Keep both your body and your finances healthy. This interest bearing account helps you save for future medical costs, so going to the doctor doesn't break the bank.
Set aside funds while enjoying tax benefits that help you make the most of every dollar. You can access your balance easily either online or by ATM, so your money is always available when you need it.
- Summary
- Save for future healthcare costs
- Earn interest on entire balance
- Tax-free contributions and distributions*
- Use funds on any qualified medical expense
- No "use it or lose it" rule
- Transferrable to next job
- High deductible health plan (HDHP) required
- $25 annual administrative fee**
- Free Visa® ATM card
- Paper checks available
- Free online banking and eStatements
- ePay available
- Free 24-hour telephone banking
- No minimum opening balance
Take a look at our current rates.
*Please consult with your tax advisor regarding tax treatment of contributions, withdrawals, and earnings.
**If the account is opened after June 30th, the initial fee will be prorated to $12.50.
- Eligibilty
In order to open an HSA:
- You must be covered by an HDHP on the first day of the month.
- You can't have any other first-dollar medical coverage.
- You cannot be enrolled in Medicare.
- You cannot be claimed as a dependent on any other federal income tax return.
- FAQ
What is a Health Savings Account?
- An HSA is an interest bearing account that you can put money into in order to save for future medical expenses.
What are some benefits to having an HSA?
- Savings — An HSA makes it easy to save for future medical expenses. And even if you don't spend it all in a given year, the balance just carries over to the next year; there is no "use it or lose it" rule.
- Portability — Your HSA goes where you do, even if you move or change jobs.
- Control — You make all the decisions: how much money to save, which expenses to pay, where the money will be held, etc.
- Security — Protect yourself and your family from high or unexpected medical bills.
How does it work?
- When you open an HSA, you get an interest bearing savings account where you can deposit funds up to the maximum allowed. You can access these funds online or by ATM. If you would like to have anytime access to funds via check or debit card access, it is necessary to open a checking account too.
- Funds will be swept nightly to your savings account so you can earn the maximum amount of interest. If you write a check or use your checking account's debit card, funds will be swept back into the account to cover the charge.
How much does it cost?
- American Bank currently has a $25 annual fee to maintain an HSA. The fee is automatically deducted on January 1st of every year.
- If the account is opened after June 30th, the initial fee will be prorated to $12.50
- If you would like to have paper checks, there is a small charge: $11 for 25; $14 for 50.
How much can I contribute?
- You can contribute up to the amount of your high deductible health plan (HDHP) deductible, but no more than $3,050 for individual coverage and $6,150 for family coverage. If you are over 55 years of age, you may also make an additional $1,000 "catch up" contribution each year.
Can my employer contribute to my HSA?
- Although this is an individual account and goes with you from career to career, your employer may choose to make contributions to a Health Savings Account as an added benefit to you. Ask your company's personnel director if they offer this option.
