HSA Certificates of Deposit
Maximize your balance with Associated Bank’s HSA CD. Enjoy FDIC insurance, competitive terms, and quarterly interest to grow your funds securely.
At Associated Bank, we understand the importance of maximizing your health savings while ensuring the security of your funds. Our Health Savings Account (HSA) Certificate of Deposit (CDs) are designed to help you achieve your long-term savings goals with the added benefit of FDIC insurance and competitive interest rates.
What is an HSA CD?
An HSA CD is a savings vehicle that allows you to invest a portion of your Health Savings Account funds in a Certificate of Deposit. By doing so, you can earn higher interest rates than with a HSA cash account while still enjoying the tax advantages of an HSA.
- Competitive Interest Rates: Our HSA CD offer attractive interest rates, allowing your money to grow faster than HSA cash accounts.
- FDIC Insured: Your HSA CD funds are FDIC insured, providing you with peace of mind knowing your money is secure.
- Quarterly Interest Credits: Watch your savings grow with interest credited to your account every quarter.
FAQs
What happens if I need to withdraw money from my HSA CD before the maturity date?
If you make an early withdrawal of principal from your HSA CD for any reason, you will be subject to an early withdrawal penalty. To avoid potential unqualified medical distribution and subsequent tax penalties, money earned through an HSA CD should be deposited into a Health Savings Account upon redemption.
Can I make additional contributions to my HSA CD during the term?
No, you cannot make additional contributions to your HSA CD during the term. The initial deposit made when opening the HSA CD will be the only contribution for the duration of the term. However, you can open multiple HSA CDs with different maturity dates to ladder your investments and take advantage of potentially higher interest rates.
What happens to the interest earned on my HSA CD?
Interest earned on your HSA CD will be added to the CD balance and will be paid out along with the principal when you redeem your HSA CD at maturity. To maintain the tax benefits of your HSA, it is required that you deposit the interest earned into your Health Savings Account upon redemption.
How do I open an HSA CD with Associated Bank?
To open an HSA CD with Associated Bank, you must have an Associated Bank HSA. Simply contact us to discuss your options and eligibility. You can fund your HSA CD using existing HSA funds or by making a new HSA contribution.
Call 800-270-7719
Available Monday–Friday
7 a.m.–7 p.m. CT
HSA cash balances are FDIC insured up to the Standard Maximum Deposit Insurance Amount (SMDIA). Deposit products are offered by Associated Bank, N.A. Member FDIC. (1437)