Health Savings Accounts: What is a HSA?

save for future medical expenses

A Health Savings Account (HSA) is an account that you can put money into to save for future medical expenses. There are certain advantages to putting money into these accounts, including favorable tax treatment. HSAs were signed into law by President Bush on December 8, 2003.

Who Can Have an HSA?

Any adult can contribute to an HSA if they:

  • Have coverage under an HSA-qualified "high deductible health plan" (HDHP)
  • Have no other first-dollar medical coverage (other types of insurance like specific injury insurance or accident, disability, dental care, vision care or long-term care insurance are permitted)
  • Are not enrolled in Medicare
  • Cannot be claimed as a dependent on someone else's tax return

Benefits of opening a Health Savings Account with SECNY FCU

  • Interest-bearing savings (Min. $100 to earn interest)
  • First 25 checks FREE!
  • Tax-free contributions
  • Tax-free distributions for qualified medical expenses
  • No hidden withdrawal fees
  • Federally insured by the NCUA (National Credit Union Administration)
  • FREE 24-hour Online Account Access with FREE Online Check Imaging
  • FREE 24-hour Online Bill Pay
  • FREE HSA MasterCard Debit Card
  • Surcharge-free ATM access at over 92,000 machines nationwide!

Details & Further Information on Opening an HSA in Central New York

  • No Annual Fee!
  • $5 minimum deposit to open HSA savings
  • $25 minimum deposit to open HSA checking

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Declared Dividend for 2nd Quarter 2024

Rates subject to change without notice.

Health Savings Accounts:

29 / HSA Checking ($1,000-$$4,999.99) 0.10% 0.10%
        HSA Checking ($5,000 and over) 0.20% 0.20%
21 / HSA Savings (min. $100) 1.00% 1.00%

Dividend rates are declared by the Board of Directors quarterly. Please note that the minimum balances must remain in accounts for the entire period to qualify for a dividend. All accounts are federally insured by the National Credit Union Administration (NCUA). All rates subject to change without notice. APR - Annual Percentage Rate APY - Annual Percentage Yield