Health Savings Account
Why is a Health Savings Account important?
By establishing a Health Savings Account, you are putting control of your healthcare spending back into your own hands.
A Health Savings Account (HSA) is a tax-exempt account established in conjunction with a High Deductible Health Plan (HDHP) exclusively for the purpose of paying qualified medical expenses of the account owner and dependents.
- 2.00%/A.P.Y.* (Annual Percentage Yield)
- $50 minimum initial contribution.
- $50 minimum account balance required to earn a dividend.
- Dividends compounded daily, credited monthly.
- Initial setup fee is $15 which is waived with an Ashland CU checking account.
- No withdrawal fees.
- No monthly account maintenance fees.
- No account transfer fees.
To open an HSA, complete the following:
- If you are not already a member of Ashland CU, you must apply for membership.
- Review and familiarize yourself with pages 2-5 of the HSA Custodial Agreement and Disclosure Statement.
- Complete the HSA Application.
- Complete the HSA Eligibility and Information Form.
- Complete Sections II and III of the Ashland CU Disclosure Statement.
Requirements
- You must be covered by an HDHP and you can not be covered by any other medical plan that is not an HDHP.
- Balances in an HSA account carry forward from year to year.
- Contributions to an HSA account are deductible for federal tax purposes, and subject to the limits under tax codes.
- Annual contributions are capped by the federal government.
- Participants age 55 and over may be able to contribute and annual “catch up” contribution.
Contributions
- $50 minimum initial contribution
- Periodic contributions through:
- Payroll deduction/direct deposit
- ACH from another account of applicant
- Personal checks
- Transfer from ACU savings, checking or money market account
Distributions
- Check withdrawal ($25 minimum)
- Debit card via HSA funds transfer to an Ashland CU checking account
- Free HSA convenience checks (8 annually)
- Additional convenience checks available for $1.00 (4 checks per page)
- Ashland CU checking account overdraft fees apply
- Monthly account transfer and withdrawal limitations apply.
Rates
Health Savings Accounts
Effective Date: Tuesday, December 16th, 2025
| Account Type | Dividend Rate | *A.P.Y. | Dividends Compounded | Dividends Paid | Minimum Amt to Receive APY |
|---|---|---|---|---|---|
| Health Savings Account | 1.980% | 2.00% | Daily | Monthly | $50 |
| *A.P.Y = Annual Percentage Yield. APY is an annualized rate that reflects estimated dividend earnings based on the dividend rate and frequency of compounding. These rates are variable rates. Rate may change after the opening of any of the above accounts. Fees may reduce earnings on the account. The dividend rates compounded daily and paid monthly. | |||||
To hear more about what our HSA program can do for you, call us at 1-800-245-8112. For additional information on Health Savings Accounts, please consult your tax professional, log-on to the IRS’s website at www.irs.gov, or the US Department of the Treasury’s website at www.ustreas.gov.
* A.P.Y. (Annual Percentage Yield) rate is variable and is subject to change.