Health Savings Accounts

If you are an individual covered by a High Deductible Health Plan,* check out the advantages of a Newtown Savings Bank Health Savings Account (HSA):

  • Tax-free health expenses** 
  • Automatic annual rollover with no time limits on usage 
  • Visa® Debit Card 
  • Competitive tiered interest rates 
  • Local availability  & assistance for answering questions 

More Insight on HSAs

  • History: Health Savings Accounts were created by Congress to let individuals pay for health expenses on a tax-free basis. 
  • Tax Benefits: An HSA can provide significant Federal tax benefits such as tax-deductible contributions; pre-tax payroll deductions; tax-deferred savings growth; and tax-free medical expense payments. 
  • When You Retire: Money in your HSA can be saved tax-deferred until you retire. Once you reach age 65, money can be used tax-free for medical expenses, or other purposes, subject to income taxes similar to other retirement savings plans. 
  • Account Control: You determine when to use your funds and make payments. If you change jobs, the money in the HSA goes with you.


*A High Deductible Health Plan (HDHP) is an insurance policy with a high deductible and usually a lower premium. It can be combined with a Health Savings Account to pay expenses toward the deductible with tax-free dollars. 
**Consult your tax advisor for tax deductibility.