Information on health Savings Accounts offered by Better Banks

Health Savings Account

A better way to pay for healthcare.

A Health Savings Account (HSA) is a special tax-deductible** account that can be used to pay for current and future eligible medical expenses.  Funds roll over each year, allowing you to save for larger medical expenses.  Access your fund easily via debit card, online banking, or even by check. 

HSA Contribution Limits**
2023: Single $3,850 | Family $7,750
2024: Single $4,150 | Family $8,300

Benefits Include:

  • Earn 2.00% APY* on entire balance
  • Interest compounded monthly
  • No monthly or yearly fees, no minimum balance
  • Save for medical expenses
  • $100 deposit to open
  • Tax benefits**
  • Funds carry over at end of year
  • Transferable to another job
  • Debit card included
  • Free Digital Banking with Bill Pay and Mobile Deposit
  • Free eStatements
  • High deductible plan required
* Annual Percentage Yield (APY) accurate as of July 1, 2024. Interest is variable and may change after account is opened.
**Consult your tax advisor.

Learn More About Health Savings Accounts

What is a Health Savings Account (HSA)?

An HSA is a special savings account that allows you to set aside pre-tax money for future qualified medical expenses. You can lower your overall healthcare costs by using pre-tax dollars in an HSA to pay for deductibles, co-payments, co-insurance and other medical expenses. 

How do I qualify?

If you are enrolled in a high-deductible health insurance plan (HDHP) as defined by the government, you can qualify for an HSA. For additional information regarding qualifications, go to www.healthcare.gov.

How does an HSA work?

Open an HSA account at any of our branches or on our website.  Decide how much to contribute to your HSA account. Learn about contribution restrictions at www.healthcare.gov. You can easily set up automatic payroll contributions directly from your employer. 

Unlike a Flexible Spending Account, your HSA balance rolls over each year, so you never have to worry about losing your savings.

At age 65 and enrolled in Medicare, funds can be used for medical expenses or any purpose but may be subject to income tax if not used for IRS-qualified medical expenses.

What are the advantages of an HSA?

Health Savings Accounts offer a way to save and pay for healthcare expenses if you have a high-deductible health plan. With an HSA at State Street Bank, you will earn interest on your unused funds. The interest earned is tax-deductible.  The funds do not expire. You can take your HSA with you if you change jobs or switch to another high-deductible health plan.