Health Savings Accounts (HSAs) are tax-favored savings arrangements for individuals covered by high-deductible health plans. With high-deductible health plan coverage, an individual must pay for a certain amount of medical expenses before the plan begins to pay for medical expenses. In exchange for paying a higher deductible, individuals benefit from less-expensive health insurance premiums. Individuals can use the money they save in an HSA to pay for medical and dental expenses incurred by their spouse, their dependents or themselves.
How do Health Savings Accounts work?
• Funds contributed to an HSA belong to the account beneficiary and are completely portable.
• Money can accumulate in the account with tax-free earnings every year.
• Distributions for qualified medical expenses are not taxable.
Who is eligible for a Health Savings Account?
• An individual who is covered under a high-deductible health plan on the first day of the month.
What are the features of Tradition Capital Bank’s Health Savings Account?
• There is no minimum balance or monthly service fee.
• $100 minimum balance to open.
• Interest is based on a variable rate and is paid each statement cycle.
• We offer eStatements and online banking at no charge.
• We offer an ATM/debit card with no monthly fees.
• Bill payment via our online banking program is available.