Health Savings Accounts
Contributions are tax-deductible
Reduce your taxable income as you save for qualified medical expenses
Save for qualified medical expenses
Helps defray health care costs for you and your family
Earnings are tax-free
And your contributions will grow even faster with our competitive interest rates
Keep funds until you need them
Roll over your HSA annually until you need it for qualified expenses
An HSA from HawaiiUSA Federal Credit Union provides peace of mind in a world of rising health care costs.
You decide how much you want to set aside and when you want to use your savings
- You're eligible to save in an HSA if you have a high-deductible health plan (HDHP)
- Minimum opening deposit of $100 (no minimum balance after opening)
- One-time setup fee of $25
- Monthly account service fee of $1
- A five-tiered interest rate structure means larger balances generate higher returns
- HSA checks are available for payments
- Maximum annual contribution amounts are enforced; additional “catch-up” contributions are allowed for those 55 and older, not enrolled in Medicare
- Penalty-free distributions for non-qualified medical expenses are allowed after age 65
Start saving today for upcoming expenses
We make it easy, and beneficial, for you to create and manage your HSA.
Frequently asked questions
Savings and checking accounts serve different purposes, and each has its advantages. A savings account is designed for long-term savings and those with higher interest rates can help your money grow over time. It's ideal for emergency funds or saving for specific goals. On the other hand, a checking account provides easy access to your funds for daily transactions, bill payments, and ATM withdrawals. With an interest-bearing checking account, you can earn money from the cash you deposit. To effectively manage your finances, it's recommended to have both types of accounts. Keep a sufficient balance in your checking account for everyday expenses and use a savings account to accumulate savings and earn interest.
Three key reasons why you should have a savings account are:
- Emergency preparedness: A savings account provides a financial safety net for unexpected expenses, ensuring you have funds readily available during emergencies or unforeseen circumstances.
- Goal-oriented saving: save systematically for specific financial goals, such as a down payment on a home, a dream vacation, or starting a business. It helps you stay organized and disciplined in achieving your objectives.
- Interest accumulation: By keeping your money in a savings account, you can earn interest on your balance, allowing your savings to grow over time. The compounding effect of interest can significantly enhance your overall savings and provide passive income.
A Share Certificate and a CD (Certificate of Deposit) are essentially the same. They both represent fixed-term deposit accounts offered by banks and credit unions. The main difference lies in the terminology used by these institutions. Share Certificates are typically offered by credit unions, while CDs are commonly used by banks. Both products have predetermined terms, locked-in funds, and fixed interest rates. Early withdrawal may result in penalties. In terms of their function and benefits, they provide a secure investment option with a guaranteed return, making them suitable for individuals looking to earn interest on their savings over a fixed period.
A Share Certificate can be advantageous in several situations:
- Higher interest rates: Share Certificates often offer higher interest rates compared to regular savings accounts. This can be beneficial if you want to maximize your earnings on a fixed amount of money over a specific term.
- Fixed-term savings: If you have a specific savings goal on a set timeline, such as saving for a down payment on a house or a major purchase, a Share Certificate allows you to lock in your funds for a predetermined period and earn interest until maturity.
- Financial discipline: By placing funds in a Share Certificate, you commit to not accessing the money until the term ends. This can help you avoid impulsive spending and maintain disciplined saving habits.
Contribution limits are outlined below. Additionally, a "catch-up" contribution is available for eligible individuals who are 55 or older by the end of the taxable year and have not enrolled in Medicare.
| Tax Year | Maximum Annual Contribution -Standard | Additional Catch-Up Contribution for Owners Age 55 or Older | Deadline to Fund | |
|---|---|---|---|---|
| Self-Only | Family | |||
| 2021 | $3,600 | $7,200 | $1,000 | April 15, 2021 |
| 2022 | $3,650 | $7,300 | $1,000 | April 15, 2022 |
| 2023 | $3,850 | $7,750 | $1,000 | April 18, 2023 |
Distributions
Withdrawals from an HAS are tax-free and penalty-free at any age if used for qualified medical expenses for yourself, your spouse, or other dependents.
High Deductible Plan (HDHP)
The IRS sets annual requirements for the minimum deductible and maximum out-of-pocket expenses for HAS-compatible health plans. You can take a full federal deduction if you start your HDHP coverage no later than December 1st of that year. Please verify with your healthcare provider that your plan is compatible.
| HDHP Annual Deductible | Maximum Out-of-Pocket Expenses | |||
|---|---|---|---|---|
| Tax Year | Self-Only Coverage | Family Coverage | Self-Only Coverage | Family Coverage |
| 2021 | $1,400 | $2,800 | $7,000 | $14,000 |
| 2022 | $1,400 | $2,800 | $7,050 | $14,100 |
| 2023 | $1,500 | $3,000 | $7,500 | $15,000 |
Must have a high-deductible health plan (HDHP)
Must have an HDHP on the first day of the month for which you are opening an HSA. For instance, if your HDHP coverage begins on the 15th of the current month, you may open an HSA on the following month. If you already have an existing HDHP prior to the first day of the month, you are eligible to open an HSA.
Have no other major medical insurance coverage
Not enrolled in Medicare (generally under age 65)
Not claimed as a dependent on another individual’s tax return
