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Health Savings Account (HSA)

State Farm Bank® deposit accounts are FDIC insured.

Prepare for the unexpected. Health Savings Accounts offer tax-deductible contributions, tax-free earnings, and tax-free withdrawals for qualified medical expenses. To get the benefits of an HSA, the law requires that the Health Savings Account be combined with high-deductible health insurance.

To open your account call State Farm Bank at 877-SF4-BANK (877-734-2265). If you are deaf, hard of hearing, or do not use your voice to communicate, you may contact us via 711 or other relay services.

Highlights

  • Open your account today with $100 or more and never worry about a minimum balance fee.
  • Save and pay for qualified medical expenses tax-free. (See additional details below.)
  • Contributions to your HSA are tax-deductible1 and may be made by you, your employer, or both.
  • Interest earned is not taxed.1
  • Health Savings Visa® Debit Card available to make qualified purchases, cash withdrawals, or ATM deposits.2
  • Enter your ZIP Code in "Get Rates" above to see the current rates for your area.

Get Rates

The HSA works similarly to an interest-bearing Checking Account. You can pay for qualified medical expenses tax-free, deduct contributions from your income taxes, and accumulate unused funds for expenses in the future.1 With access to your Health Savings Account online, you can even track your payments and contributions easily. This flexible account, combined with a high-deductible health plan (HDHP), is a great way to save and pay for medical expenses.

Features and Benefits

  • A variable, tiered interest rate is applied and is compounded daily.
  • Ability to use funds for current qualified medical expenses or to save for future needs.
  • Carry unused balances forward from year to year.
  • This account is FDIC insured.
  • Initial check order is complimentary.
  • Monthly statements available.
  • Statements available online or by mail.
  • Health Savings Visa® Debit Card available to make qualified purchases, cash withdrawals, or ATM deposits.2
  • Visit our HSA calculator.

1Neither State Farm nor its agents provide tax or legal advice.

2Deposits to Health Savings Accounts made at an ATM will count only as current year contributions. With the Health Savings Visa® Debit Card, it is your responsibility to confirm that your withdrawals are for expenses that are qualified medical expenses and qualify for tax excludability. It is imperative to maintain sufficient medical expense records. The records identify that the distributions have been made exclusively for qualified medical expenses and such distributions are, therefore, excludable, from gross income.

Additional HSA Details

An HSA is a tax-exempt trust or a custodial account in which you can save money to pay for future qualified medical expenses. Expenses incurred before your HSA is established aren't considered qualified medical expenses. Qualified medical expenses are explained in IRS Publication 969 and IRS Publication 502. An HSA must be used in conjunction with a high-deductible health plan (HDHP), and any growth in the HSA is tax-free.

If you have plans to make a contribution to an HSA and currently have a hospital indemnity policy or plans to purchase one in the future, then you should consult with your tax advisor about the features offered in the hospital indemnity policy and the possible implications of combining such a policy with a HSA.

Visa is a registered trademark of Visa International Service Association.

*Neither State Farm nor its agents provide tax or legal advice.

State Farm Bank, F.S.B., Bloomington, Illinois ("Bank"), is a Member FDIC and Equal Housing Lender. NMLS ID 139716. The other products offered by affiliate companies of State Farm Bank are not FDIC insured, not a State Farm Bank obligation or guaranteed by State Farm Bank, and may be subject to investment risk, including possible loss of principal invested. The Bank encourages any interested individual(s) to submit an application for any product(s) offered by the Bank. We also encourage you to obtain information regarding the Bank's underwriting standards for each type of credit or service offered by visiting statefarm.com or by contacting the Bank at 877-SF4-BANK (877-734-2265). If you are deaf, hard of hearing, or do not use your voice to communicate, you may contact us via 711 or other relay services. To apply for a Bank product, you may also see your participating State Farm Agent.

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