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Banks health savings accounts (HSA) are for people who wish to save for qualified medical expenses. Accounts are FDIC insured, and any money you invest, earn, or withdraw from the account is tax-free.
A Good Choice for Some
The following people should consider banks health savings accounts.
- The Young & Healthy – If you fall into this category, you probably have low health care costs already. Opening an HSA just means greater savings for you in the long-run.
- The Elderly & Healthy – An HSA is a great way to get affordable health coverage before qualifying for Medicare.
- People Using Alternative Medicine – An HSA covers many types of alternative medicines, tax-free.
When an HSA May Not Be
Banks health savings accounts sound like a great way to save money, tax-free; however, they are not for everyone.
- Non-Savers – Those who don’t have the financial means or the discipline to save their earnings should not open a health savings account.
- People With Chronic Illnesses – It is less likely you’ll be able to take advantage of saving with an HSA if you have habitual medical expenses.
- People Who Take Many Prescription Drugs – With the rising cost of many prescription drugs, it may be difficult to save money with an HSA.
