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Health Savings Account

health savings account

Saving for your health is investing in your future.

Want to save for future medical expenses and get special tax advantages?

Open a Health Savings Account.

A Health Savings Account (HSA) is a special account that allows you to set aside money to help pay for future medical expenses, and deduct those contributions on your tax return. To qualify for an HSA, you must be covered by a High Deductible Health Insurance Plan (HDHP) and satisfy other eligibility requirements.

HSA funds are never taxed when used for qualified medical expenses, and all unused funds can be rolled over from year to year. You can learn more about HSAs from the federal government.

This ALEC Health Savings Account features a competitive rate, low or no fees and special conveniences. In addition, ALEC also offers a Health Savings Certificate Account that, compared with the Health Savings Account, provides a higher rate and a fixed term or a Health Savings Investment Account where you can invest your HSA in mutual funds.

Already have an ALEC HSA? Manage it online.

Save For Future Medical Expenses

Advantages of our Health Savings Account:

Tax-deductible contributions

Tax-deferred dividends1

No setup or monthly fees

Penalty-free withdrawals for qualified medical expenses**

Free HSA debit card

HSA funds can remain with you if you change jobs

No minimum deposit

Contribution Limits

YearSelf Only -
Under Age 55
Family -
Under Age 55
Self Only -
Age 55 and older
Family -
Age 55 and older
*Note: you may contribute to your 2023 limit until April 15, 2024.

Health Savings Account (HSA)

Nominal RateAPY*
* The Annual Percentage Yield is the rate that is earned if the funds are left to compound for one year. All dividends are paid monthly based on the daily average balance. Rates subject to change monthly. The nominal rate is the rate used to calculate the monthly dividend.

You can easily access your HSA anytime via Online Banking, Mobile Banking and Telephone Banking

Plus, HSA Savings and HSA Certificates at ALEC are insured up to $250,000 by American Share Insurance, the nation's largest private deposit insurer.

To learn more about the HSA process, click on the link below that applies to you:

Want more tools for managing your HSA?
Check out our calculators:

  • Health Savings Account (HSA) Contribution
  • Health Savings Account (HSA) Goal
  • Health Savings Account (HSA) Savings
  • Health Savings Account (HSA) vs. Traditional Health Plan

For more information, download our HSA Disclosure document.

1 Dividends will be credited to the member's account every month.
** Consult your tax adviser for details. References to taxes, tax deductibility and tax advantage is not intended as tax advice.
An open membership is required to process your HSA application. If you're not a member, you must first apply for ALEC membership to open a Health Savings Account. Membership requirements include a completed application, copy of identification and a $5 ALEC Savings Account.