Health Savings Accounts

A tax-free way to save for future health expenses.

For members who have a high deductible health plan (HDHP), an HSA offers special advantages with a competitive rate of return.

The Health Savings Account (HSA) is a special, tax-advantaged savings account that can be used to pay medical expenses. An HSA can be set up as an individual or family account, and allows members to pay for current health care expenses and save for future qualifying medical and retiree health care expenses.

Requirements

  • Applicants must be at least 18 years old
  • Applicants must be an eligible MECU member with a minimum $5 balance in their regular savings account (to become a member, click here).
  • Must have a HDHP and not be covered by another general coverage medical plan or Medicare
  • HSA can be established on the effective date of your HDHP coverage — however, if your coverage does not begin on the first day of the month, you cannot establish your account until the first day of the following month

HSA Features and Benefits

  • No minimum deposit or balance required to earn dividends
  • Competitive dividends (paid monthly)
  • No account fees
  • Balances roll over from year to year
  • Easy access with free checks with the option to include a Visa Debit Card
  • Choice of savings plans
  • HSA certificates receive the same rate as our regular certificates (excludes promotional rates)
  • Through a partnership with DEVENIR, a national leader in investment options for health benefit plans, MECU has made it possible to invest your HSA funds in a variety of no-load or load-waived mutual funds via our brokerage HSA.


Investment accounts are not NCUA insured and they are not credit union guaranteed. Investment accounts are not a deposit account, or an obligation of MECU, and they may lose value. They are not guaranteed by any federal government agency. Performance data and ratings represent past performance and are not a guarantee of future results. Investment returns and principal value will fluctuate and investors’ shares, when sold, may be worth more or less than their original cost.

Mutual Fund Investment Option

Through MECU’s partnership with DEVENIR, a national leader in investment options for health benefit plans, you can invest your HSA funds in a variety of no-load or load-waived mutual funds via our investment HSA.

So now, along with the tax-advantaged savings account that serves as your base HSA account, you can diversify your HSA with a mutual fund investment with benefits that include:

  • The potential to earn higher yields than with a savings account
  • Ability to self-direct and allocate your funds as you wish
  • A secure, convenient online website to view the status of your HSA investment, trade or reallocate your funds
  • Flexibility in moving money back and forth between your base HSA and your investment HSA

A $100 minimum investment is required to open an HSA investment account and you must maintain a balance of $1,000 or more in your base HSA account prior to making any investments in the investment HSA account.*


Investment accounts are not NCUA insured and they are not credit union guaranteed. Investment accounts are not a deposit account, or an obligation of MECU, and they may lose value. They are not guaranteed by any federal government agency. Performance data and ratings represent past performance and are not a guarantee of future results. Investment returns and principal value will fluctuate and investors' shares, when sold, may be worth more or less than their original cost.

* If your base account balance falls below $1,000, you must bring the balance back to a minimum of $1,000 before you can make any additional investments to your investment account.

For a list of our fees, please check our fee schedule.

Account TypeMinimum To Earn APYCompound FrequencyAPYBank Average APY
Savings$100monthly

0.10%

0.10%
Money Market$1
$25,000
$100,000
monthly

0.09%
0.15%
0.22%

0.09%
0.16%
0.22%
IRA Market$1
$25,000
$100,000
monthly

0.09%
0.15%
0.22%

0.22%
*
*

Health Savings Account$1
$25,000
$100,000
monthly

0.09%
0.15%
0.22%

*
*
*

Holiday Savingsnonemonthly

0.10%

*
Vacation Savingsnonemonthly

0.10%

*

APY -- Annual Percentage Yield (the yield you earn on a deposit over a year).

* No bank averages are shown for these products/tiers because this offering is not commonly available at other financial institutions. Bank average APYs provided by Datatrac, an unbiased research firm that monitors rates from over 20,000 financial institutions nationwide.

Savings insured up to $250,000, and Individual Retirement Accounts are separately insured to $250,000, by the National Credit Union Administration, a U.S. government agency. An additional $250,000 of coverage is provided by Excess Share Insurance. Federal regulations prohibit the payment of dividends in excess of available earnings. All dividends are calculated using the average daily balance method, compounded monthly and paid monthly. Any deposits or withdrawals will affect the actual APY earned. Fees may reduce earnings. These are variable rate accounts; rates are subject to change without notice.

Savings account dividend rates are based on the credit union’s earnings at the end of the dividend period, and thus cannot be declared in advance. Vacation and holiday savings withdrawals are limited to program parameters.

Money market accounts have a withdrawal minimum of $500. On all MECU money market accounts, you are permitted to make up to six preauthorized, automatic, telephonic, audio response or Internet transfers to another of your accounts, or to the account of any other person or organization, during the calendar month. If you exceed these limitations, your account may be subject to a fee or be closed. In addition, a $10.00 fee may be assessed for each withdrawal in excess of six per calendar month, regardless of type. These withdrawals include preauthorized, automatic, telephonic, audio response, Internet transfers, transfers from your account to pay a loan with us, withdrawals by check made directly to you, in person withdrawals, withdrawals by mail or withdrawals made by ATM. Monthly minimum balance fee of $10 is assessed on account balances less than $2,500. Fees may reduce earnings. These are variable rate accounts; rates are subject to change without notice.



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