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What is a Health Savings Account?

The Health Savings Account (HSA) is a tax advantage savings plan available to taxpayers in the United States who are enrolled in a High Deductible Health Plan (HDHP) and are used to cover current and future medical expenses. An HSA allows contributions to be added before tax is paid on it and then to withdraw the money tax-free1 for qualified medical expenses. HSAs help to manage medical expenses and reduce the continuing growth of healthcare costs.

Benefits of a Health Savings Account paired with a high deductible health plan include:

  • Lower premiums. Benefit from lower premiums while still protecting against high or unexpected medical bills.
  • Extended coverage. HSA funds can be used to pay for a wide range of current medical and mental health expenses, including expenses that your insurance may not cover.
  • Save and invest. Save money in your account for future medical expenses and grow your account through investment earnings.
  • Control over your money. Instead of investing in high premiums that result in medical funds you may or may not use, you put your HSA funds into an account you control. You can choose to save these funds for future medical expenses or pay current expenses and decide which expenses to pay from the account. 
  • Accounts are completely portable. This means that even if you change jobs, change medical coverage, become unemployed, move to another state or change your marital status, you can keep your HSA.
  • Flexible contribution options. Others can contribute to your HSA account. Contributions can come from you, your employer, a relative or anyone who wants to add funds.
  • Keep your money. Account funds “roll over” from year to year as accumulated tax-free1 savings. There is no “use it or lose it” rules for HSAs.
  • Triple tax savings! Contributions  are made with pre-tax dollars, withdrawals are not subject to federal taxes if used for qualified medical expenses and interest or other earnings are tax-free1.

Start Building Health Savings Today

It’s never been easier to take control of your health and grow your money. Contact us at 319.291.2000 or visit any CBT branch to open your HSA account.


Accelerate your HSA with a Health Equity Account

Just like a traditional savings account, your HSA earns interest. This makes your HSA an effective component of your financial strategy. Once your account meets a certain threshold, you can also invest in mutual funds much like a 401(k) to maximize your HSA earning potential. Learn more about Health Equity.

The Health Equity Account is not insured by FDIC or any other government agency. | Not bank guaranteed. | Not bank deposit or obligation. | May lose value.


1HSAs are never taxed at a federal income tax level when used appropriately for qualified medical expenses. Also, most states recognize HSA funds as tax deductible with very few exceptions. Please consult a tax advisor regarding your state’s specific rules.

Maximize your HSA earning potential

To take full advantage of tax savings and to build a reserve for the future, maximize your contributions as set by the IRS:

- Individual Family
2023 $3,850 $7,750
2024 $4,150 $8,300

At age 55, an additional $1,000 is allowed annually.