A way to save for medical expenses and reduce your taxable income is with an HSA, or Health Savings Account. You can pay for current or future healthcare, including eligible expenses that might not be fully covered under traditional health plans.
- Complimentary HSA Debit MasterCard1
- Complimentary Online Banking
- Complimentary Online Bill Pay
- Complimentary Mobile Banking2
- Complimentary monthly eStatements
- Interest Earned on Tiered Balances3
- Convenience Checks4
- $3 Monthly Service Fee with Rewards Credit. Earn rewards credit each statement cycle to offset the monthly service fee. Accounts must be in good standing to receive rewards credit5
1 MidCountry participates in the MoneyPass network, providing no fee ATM services at MoneyPass locations nationwide. ATM fees may be charged at non-MoneyPass network machines by the ATM owner.
2 Mobile carrier may charge access fees depending on your individual plan. Check your carrier for specific fees and charges.
3 See current Deposit Rate Sheet for applicable balance tiers and interest rates.
4 Standard check printing charges apply.
5 Monthly Service Fee is waived if the account is a member of a qualified employer group. Alternatively, earn a $3 monthly reward if your Health Savings Account average balance is maintained at $500+, or if your relationship balance is maintained at $2500. Relationship balance includes all Checking, Savings, Money Market, Certificate of Deposit and Consumer Loan balances related to the social security number (SSN) owner on the Health Savings Account. Balances are based on the cumulative average balances of deposit accounts maintained during the HSA statement cycle, and current outstanding principal balances on qualified loans. To be included as a related account, the social security number must be named as an owner or joint owner, borrower or joint borrower on the account.
How Does an HSA Work?
A High Deductible Health Plan (HDHP) covers major health expenses. Your HSA compliments the HDHP and will help pay eligible day-to-day medical expenses including deductibles and copays, plus other qualified medical expenses not covered by your plan. You can contribute to your HSA pre-tax, the funds grows tax-free, and can be used tax-free. You — not your employer or insurance company — own and control the money in your HSA. Contact your tax advisor for annual contribution limits.
Can I Open an HSA?
To be eligible for HSA contributions, individuals must be enrolled in a high deductible health plan, under age 65 or not enrolled in Medicare, and not claimed as a dependent on another person’s tax return. The HDHP must be your only coverage – you can’t be covered by other insurance (including a spouse’s plan).
Other limitations may apply. Your tax advisor can help determine if you are eligible.
Is an HSA the Right Choice for Me?
Consider your budget and your likely health care needs for the coming year. There are several advantages to an HSA:
- Take control of your medical expenses. You are in the driver’s seat to decide how you save and spend your money. Engaged consumers have the opportunity to realize significant savings.
- Pay for medical expenses tax-free. Allows pretax savings for eligible medical expenses as well as deductibles , prescriptions, vision, and dental care.
- No “use it or lose it” rules apply. Savings can accumulate and roll forward year after year on a tax deferred basis. Even if you change jobs, the money stays with you.
- Potential to build additional retirement savings. Once you’re over 65 and enrolled in Medicare, you can no longer contribute to an HSA but you can still use the money in your account for any purpose without penalty (may be subject to income tax if not used for qualified medical expenses).
Effective Date: Monday, January 30, 2023
|Minimum Balance to Open||Minimum Balance to Obtain APY*||Interest Rate||APY*|
|$0 - $2,499.99||$0||$0.01||0.01%||0.01%|
|$2,500 - $4,999.99||$0||$2,500.00||0.01%|
|$5,000 - $9,999.99||$0||$5,000.00||0.03%||0.03%|
|$10,000 - $24,999.99||$0||$10,000.00||0.04%||0.04%|
|$25,000 and over||$0||$25,000.00||0.04%||0.04%|
* Annual Percentage Yield
Fees may reduce earnings. Rates are subject to change.