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A Health Savings Account (HSA) is checking with interest product that offers a different way
for consumers to pay for their health care. HSA's enable a client to pay for current health expenses
and save for future qualified medical and retiree health expenses on a tax-free basis. 1
You must be covered by a High Deductible Health Plan (HDHP) to be able to take advantage of an
HSA. An HDHP generally costs less than traditional health care coverage so the money you save on
health insurance can be put into the HSA.
What are the benefits of an HSA?
- Ownership - Funds remain in the account from year to year.
- Portability - Accounts are completely portable even if you change jobs, change your medical coverage or move to another state.
- Control - You have complete control over how and when you use your HSA dollars.
- Security - Your high deductible health plan (HDHP) and HSA protect you against high or unexpected medical bills.
- Tax Savings - Tax savings on contributions, earnings and withdrawals on qualified medical expenses1.
First Midwest Bank's HSA combines the best benefits of our checking accounts and pays a higher rate of interest than most regular savings account or a typical checking with interest account. We'll also waive the monthly maintenance fee on accounts maintaining an average daily balance greater than $5002 .
Click on "Information on HSAs" provided by the U.S Treasury to learn more about HSA's.
Click on “Qualified Medical Expenses” for a complete
listing provided by the IRS.
1. Consult your tax advisor about the tax benefits applicable to Health Savings Accounts.
2. Health Savings Account clients will be charged $2 on any month the average balance falls below $500. There is also a $20 initiation fee that can be waived with direct deposit or automatic payroll deduction. A minimum of $100 is required to open this account. Refer to your Retail Account Agreement and Disclosure for detail.
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