Health Savings Account (HSA)
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 savings account be combined with high-deductible health insurance.
To open your account, contact a State Farm® agent or call State Farm Bank at 877-SF4-BANK (877-734-2265). Callers who are hearing or speech impaired should dial 711 or use a preferred Telecommunications Relay Service.
Find an Agent
- 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-deductible and may be made by you, your employer, or both.
- Interest earned is not taxed.
- Health Savings Visa® CheckCard available to make qualified purchases, cash withdrawals, or ATM deposits.
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.
- Appreciate the flexibility 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 50 checks are complimentary.
- Monthly statements available.
- Statements available online or by mail.
- Health Savings Visa® CheckCard available to make qualified purchases, cash withdrawals, or ATM deposits. 2
- Visit our HSA calculator.
1State Farm Bank and its affiliates do not provide tax, investment, or legal advice. Federal and state tax laws are subject to change. If tax, investment, or legal advice is required, please seek the services of a licensed professional.
2 Deposits to Health Savings Accounts made at an ATM will count only as current year contributions. With the Health Savings Visa ® CheckCard, 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.
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.
For additional details, consult your financial and/or tax advisor to discuss your specific situation.
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State Farm Bank, F.S.B., Bloomington, Illinois, 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 subject to investment risk, including possible loss of principal invested. Contact State Farm Bank toll-free at 877-SF4-BANK (877-734-2265). Callers who are hearing or speech impaired should dial 711 or use a preferred Telecommunications Relay Service.