Health Savings Accounts (HSA)

Unlock Tax Savings and Manage Healthcare Costs Smarter with a Health Savings Account! (HSA)

Discover the power of a Health Savings Account (HSA) – an invaluable tool designed to help you save on healthcare expenses while enjoying tax advantages. By allocating funds on a pre-tax basis, an HSA empowers you to cover deductibles, copayments, coinsurance, and other qualifying medical costs with untaxed dollars, potentially reducing your overall healthcare expenditures.

Here’s how it works: HSA contributions are tax-deductible, and the funds grow tax-free over time. Plus, withdrawals are tax-free when used for eligible medical expenses. However, it’s essential to note that HSA funds cannot be used to pay premiums.

To qualify for an HSA, you need to be enrolled in a High Deductible Health Plan (HDHP), typically a plan that offers preventive services before reaching the deductible. Whether you’re covered by an employer’s plan or have an independent high-deductible health plan, Kensington Bank offers you the flexibility to open an HSA at any time, empowering you to take control of your healthcare finances.

Seize the opportunity to enroll in an HSA-qualified health plan and set up your HSA today, whether during your organization’s annual open enrollment or independently with Kensington Bank. Let us guide you towards financial wellness and smarter healthcare decisions.

Why Choose Kensington Bank for Your HSA Needs?

1. Expert Guidance: With Kensington Bank, you’re not just getting an HSA; you’re gaining a trusted financial partner committed to your success. Our experienced advisors are here to guide you through every step of the process, from account setup to maximizing your savings potential.
2. Additional Benefits: As an account holder, you’ll enjoy exclusive perks through Kensington Bank’s Rewards Checking account, enhancing the benefits of your HSA. Earn rewards on everyday purchases and enjoy additional financial incentives tailored to your needs.
3. Tax Advantages: Enjoy the tax benefits of an HSA with Kensington Bank. Contributions to your account are tax-deductible, and withdrawals for qualified medical expenses are tax-free. Plus, any unused funds roll over year after year, allowing your savings to grow tax-deferred.
4. Convenient Access: Manage your HSA with ease through our user-friendly online portal and mobile app. From checking your balance to submitting reimbursement requests, you can handle all your healthcare finances anytime, anywhere. Plus, with the added convenience of an HSA debit card, accessing your funds for qualified expenses is hassle-free.
5. Educational Resources: Knowledge is power when it comes to financial planning. That’s why we provide a wealth of educational resources and tools to help you make informed decisions about your HSA and overall financial health.

Ready to Take Control of Your Healthcare Savings?

Join the thousands of individuals and families who trust Kensington Bank for their HSA needs. Whether you’re looking to start saving for future medical expenses or want to make the most of your current HSA, we’re here to help you achieve your goals. Contact us today to learn more and take the first step toward a healthier financial future with Kensington Bank.

BENEFITS

• Contributions to your HSA are 100% deductible (up to the legal limit), mirroring the benefits of an IRA.
• Withdrawals for qualified medical expenses, including dental and vision, remain untaxed, providing you with invaluable financial relief.
• Enjoy tax-deferred interest earnings that become tax-free when utilized for eligible medical costs, maximizing your savings potential.
• Unlike a flexible spending account (FSA), your HSA balance doesn’t expire at year-end, continuing to grow tax-deferred and providing financial security.
• Rest assured knowing your HSA is FDIC insured, ensuring the safety and security of your healthcare savings.
• Unspent funds in your HSA automatically roll over each year, preserving your resources for future health expenses and offering peace of mind.
• Contributions to your HSA can originate from various sources, including yourself, your employer, family members, or any other benefactor.
• Your HSA funds remain accessible for future qualified medical expenses, even through transitions such as changes in insurance plans, employment, or retirement. Essentially, your HSA empowers you with control over your healthcare finances, allowing you to decide how and when to utilize your funds.

CONTRIBUTION LIMITS AND TERMS

Contribution limits are frequently updated each year by the IRS. For up-to-date limits please visit the IRS Website.

Rate Information:

• Your interest rate and annual percentage yield may change at any time.
• Interest is compounded and credited monthly.

Account Closure:

• If you close your account before interest is credited, accrued interest will not be received.

Minimum Requirements:

• $1.00 minimum deposit required to open the account.
• Maintain a minimum daily balance of $0.01 to earn the disclosed annual percentage yield.

Interest Calculation:

• Interest is calculated using the daily balance method, applying a daily periodic rate to the account’s principal each day. 
• Interest begins accruing on noncash deposits from the business day of deposit.

Transaction Limits:

• Deposits are limited to the IRS annual contribution limit for Health Savings Accounts.
• Withdrawals are restricted to qualified medical expenses.

Additional Information:

• Enrollment in a high-deductible health plan is required.
• An annual $20.00 Health Savings Account Fee applies.
• A $10.00 Transfer Fee is charged for each Health Savings Account transfer to another financial institution.

2024 HSA Promotion Terms

1. The promotional Annual Percentage Yield (APY) is available for newly opened Health Savings Accounts (HSA) at Kensington Bank with a 2.5% rate increase above the variable bank posted rate for the initial 12 months that the account is opened. Rates are subject to change at any time after the account is opened. The APY of 4.59% is accurate as of 05/15/2024. A minimum balance of $1.00 is required to open the account and a minimum daily balance of $0.01 to obtain the APY. Fees may reduce earnings. This promotion operates autonomously and is not linked to any other ongoing promotions for this account type. Existing promotions will retain their functionality and benefits. Customers with a qualified Kensington Bank rewards checking account are eligible for an additional .25% rate bump on their HSA, resulting in an advertised APY of 4.85% and 4.59% will be earned for accounts without a qualified Kensington Bank rewards checking account as of 05/15/2024. After the 12-month period, the interest rate will revert to the standard Health Savings Account interest rate and APY. Health Savings Accounts require enrollment in a high deductible health insurance plan.