Lower your financial stress with competitive interest, tax advantages, and dedicated service from local banking experts.
- Competitive Interest
- Tax Advantages1
- Free Debit Card
- Must have a high deductible health plan (HDHP) to open
- Higher interest than regular savings; rates based on balance
- Interest earned on entire balance
- Earnings and withdrawals are tax free if used for qualified medical expenses
- Contributions (including those from employer) are excluded from income
- Avoid the $1.75 monthly maintenance fee by maintaining a $2,500 balance minimum average daily balance
- One-time account setup fee of $20
- Federally insured by FDIC
- $50 minimum deposit to open
Important Note: The information contained in this section is not intended to provide specific advice or recommendations for any individual. We suggest that you consult your financial advisor.
You must have a high deductible health plan (HDHP) if you want to open an HSA. A HDHP is an inexpensive health insurance plan that generally doesn't pay for the first several thousand dollars of health care expenses (i.e. your "deductible") but will generally cover you in full after that. Of course, if you have an HSA, your HSA is available to help you pay for the expenses your plan does not cover.
Qualified Medical Expenses
A common question is what counts as a qualified medical expense. HSA funds retain their tax free status if they are used for the following expenses:
- Doctor and dentist visits and most medical procedures
- Transportation to receive medical or dental care
- Healthcare coverage if you are unemployed
- Long-term care insurance
- Certain continuation-of-benefit charges
- Health insurance plans that qualify after age 65
For a full list of qualified medical expenses as defined by the IRS, please visit the U.S. Department of Treasury website.
The maximum contribution limits for 2020 are:
- $3,550 for a single policy for 2020
- $7,100 for a family policy for 2020
- Ages 55+ may make additional $1,000 "catch-up" contributions
More information is available at the U.S. Department of Treasury website.
Each Solvay Bank branch office has a dedicated HSA Account Specialist. Use the "Open in Minutes" button or "Questions" link below to get started.
To transfer an existing Health Savings Account (or Archer Medical Savings Account) from another institution to Solvay Bank, use our Request for Transfer form.