Heritage Bank’s Health Savings Account (HSA) is an interest bearing personal account designed to help eligible individuals save for current and future qualified medical expenses and is used in conjunction with a High Deductible Health Plan from your insurance provider.*
- $50 minimum deposit to open account, waived if regular ACH deposits established at account opening
- Earn interest on the full balance of your HSA with tiered interest
- $30 setup fee to be paid at the time HSA is established, may be deferred for up to 30 days (Setup fee reduced to $20 if account opened online)
Additional HSA Features and Requirements
- Variable interest rate may change daily; Interest calculation is based on daily (collected) available balances and is compounded monthly
- Free eStatements or $4 per month if paper statements are mailed
- Transfer money to or from your account anytime using Digital Banking*
- One free debit card (additional cards $10 each); no checks with account
- Make tax-free distributions from your HSA for qualified medical expenses using:
- $30 fee if account is closed within 6 months of opening
- External Transfer: $30
- IRS corrections: $10
- Excess contributions: $20
- Overdrafts & NSF: $33 per item**
* Please consult your tax preparer for eligibility and contribution limits.
** Overdrawing your HSA will cause the plan to be disqualified by the IRS.
What AN HSA Can Be Used For
According to the Internal Revenue Service (IRS), HSAs can be used to pay for:
- Eligible medical expenses
- Health insurance premiums under COBRA continuation coverage
- Health insurance premiums while receiving unemployment compensation
- Medicare Parts A, B, C & D premiums (for those ages 65 or older only)
- A qualified long term care insurance contract
Eligible medical expenses for HSAs are defined in Section 213(d) of the Internal Revenue Code. A complete list is available from the IRS in Publication 502 (Medical and Dental Expenses) by visiting www.irs.gov.
Additional Information can be found on the US Department of The Treasury – Resource Center page.
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