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Health Savings Account

A health savings account (HSA) is a tax-advantaged medical savings account available to taxpayers in the United States who are enrolled in a high-deductible health plan (HDHP). The funds contributed to a health savings account are not subject to federal income tax at the time of deposit. They are also not taxed when they are distributed for covered health care expenses. The IRS determines which health care expenses can be paid by HSA distributions. Your health insurance provider will be able to tell you if your health plan qualifies as an HDHP.

Requirements

A minimum deposit of $100.00 is required to open the account. You must have confirmed with your health insurance provider that you have a qualifying policy. You must also know if the policy covers only you or if it covers additional family members.

Interest Earnings

Interest earned is credited, and compounded, to the account monthly. If you close your account before interest is credited, you will not receive the accrued interest. If the average daily balance of the account for any month is less than $50.00, no interest will be earned for that period.

Interest is calculated on the average daily balance. Adding the balance of the account for each day of the month and dividing that sum by the number of days in the month determines such average balance of an account.

Interest begins to accrue on non-cash deposits no later than the first business day following the day on which the deposit posts to the account. Checks are considered non-cash items.

The interest rate and Annual Percentage Yield may change. At our discretion, we may change the interest rate on your account monthly. The account statement will report the Annual Percentage Yield. You may call the bank anytime to learn the current interest rate applicable to your account. Withdrawals from your account may reduce earnings.

Withdrawals

You can withdraw funds from your Health Savings Account in person or by phone. These withdrawals are governed by the restrictions in the custodial agreement. Compliance with those terms is the responsibility of the account holder. On interest bearing accounts, except time certificates of deposit, we reserve the right to require at least seven days written notice before any withdrawal.

We do not allow pre-authorized automatic debits against health savings accounts to pay third parties.

Service Charges

If a Health Savings Account has withdrawals in excess of 2 withdrawals per month, a charge of $1.00 will be assessed for each excess withdrawal.

Periodic Account Statements

We mail account statements to you monthly.

If you have questions about this account, please:

Monthly Security Letter

Reorder Checks

Calculators

Secure Forms

Educational Videos