In a thriving HSA market, First American Bank Health Account Services leads the way with top-tier financial solutions.
Morningstar’s recently unveiled Health Savings Account Landscape Report recognized First American Bank Health Account Services as one of the top benefit account providers. This accolade further consolidates First American’s position as a path-paving financial institution whose health savings accounts (HSA) are delivering exceptional banking solutions to both individuals and businesses.
HSAs are proving to be crucial in personal financial planning, offering tax advantages and enhanced flexibility in healthcare cost management. The Morningstar report evaluated 11 HSA providers (including UMB, HealthEquity, and Fidelity) along two axes: spending accounts for existing medical costs and long-term investment accounts. First American Bank was the highest-rated community bank on the list to earn top ratings on both counts and was ranked second-best HSA spending account provider, highlighting the company’s ability to cater to customers along a variety of financial and healthcare needs.
“We are proud to be recognized as one of the leading HSA providers,” said Mitch Rosenbloom, First Vice President of Health Account Services at First American Bank. “It is a testament to First American Bank’s work and to our client’s trust in our financial solutions.”
What are HSAs, and Why Are They Growing in Popularity?
HSAs are tax-advantaged accounts designed to help individuals enrolled in high-deductible health plans to save and pay for qualified medical expenses. They offer a powerful combination of healthcare and investment benefits, including:
- Triple Tax Benefits: HSA contributions are tax-deductible, meaning any earnings from those contributions and withdrawals toward medical expenses are both tax-free.
- Flexibility: Unused HSA funds roll over from year to year, allowing individuals to use them both for short-term medical expenses as well as long-term retirement savings.
- Portability: HSAs are not employment-dependent and individuals can retain them even when they switch jobs.
As Morningstar notes in its report, HSAs have been growing at exponential speed on the back of these advantages. Total assets have grown from $5B in 2006 to $123B in 2023, and are expected to reach $168B in 2026. Only last year there was a 5% increase in the number of HSA accounts in the U.S. (37 million in total), and a 37% increase in HSA investment assets ($46B). This is partly fielded by employer involvement, which is driving wider HSA adoption: about 26% of all HSA contributions came from employers, highlighting the crucial benefit of this banking option both for employers and for employees.
What Sets First American Bank’s HSA Apart?
First American Bank’s commitment to offering unique HSA options is evident in our focus on personalized service, low fees, competitive interest rates, robust investment options, and leading technology. As highlighted in Morningstar’s report, First American Bank Health Account Services excels in three key areas, showcasing our dedication to providing top-notch financial solutions:
- No Maintenance Fee: First American Bank does not charge a monthly maintenance or annual fee to consumers, allowing users to significantly maximize their savings.
- Competitive Interest Rates: First American Bank paid the highest rate in balances above $100,000 of all 11 HSA providers evaluated by Morningstar.
- Strong Investment Options: First American Bank offers a range of mutual funds and investment opportunities* for account holders looking to use their HSA as a long-term investment vehicle.
“At First American Bank, our focus is to create flexible HSA solutions that adapt to our client’s healthcare needs while also providing unique long-term investment opportunities,” said Mitch.
A Platform for Long-Term Financial Health
First American Bank’s recognition as one of the top HSA providers by Morningstar speaks volumes about its commitment to customer satisfaction and financial stability. With features designed to benefit both spenders and savers, First American Bank Health Account Services continues to set itself apart from the competition by providing an HSA solution with competitive interest rates and a suite of investment opportunities.
With First American Bank as your partner, you will benefit from the unique opportunity and ease of having our other specialized business teams with decision-making authority at your fingertips. As a full-service community bank, we can help your business grow with customized business solutions, create retirement strategies for employers and employees, guide you in your investments with our wealth advisory teams, and offer many ways for individuals to grow and manage their money, including a wide range of checking and deposit accounts, loans, and more.
For those looking to make the most of their HSA, First American Bank offers a comprehensive platform that delivers both peace of mind and financial growth. We’re the financial partner for all your financial needs, including HSAs, Flexible Spending Accounts (FSA), Health Reimbursement Arrangements (HRA), and Qualified Transportation Accounts (QTA).
