A Health Saving Account is a financial assistance to tackle health-related issues. HSA serves the individual through his/her life as it helps the person to manage their finances to get things better. The Health Saving Account is gaining popularity these days as it is a non-taxed savings account. Any person living in either a rural or urban area can easily get the benefit of this account as they can easily open this HSA account with any bank, financial institution, or lender. They can easily manage this savings account and deposit funds to deal with emergency crises related to health. This account are not provided or covered by the health insurers. An HSA can be easily coupled with a specific health plan tailor-made to cover all your health-related expenditures.
These days, there are several banks and financial institutions that provide health savings accounts along with other health insurance coverage. It doesn’t need a lengthy procedure to follow and it is available with low documentation works.
Let’s know other things about Health Saving Account (HSA) in detail:
Essential Requirement for Opening a Health Saving Account
Here, we are providing some essential points to open your HSA account.
- You should be a resident of India.
- Your age must be in the range of 21 – 55.
- You are required to submit a copy of your savings account in a reputed/government-approved bank in India. You can have your account in your preferred bank.
- This account can also be opened on the recommendation of your employer in writing.
Debit and Credit card Facilities
If you choose HSA to manage your financials in case of any medical emergency, you will provided the benefit of debit and credit card facilities. It helps ease transactions in these hard times which smoothens every process like treatment, financial need medical expenses etc.
The Interest Rates are Very Low
If you want to open your Health savings account in your area, you won’t need to get a new loan as the process is very straightforward. The HSA is available a very minimal interest rates.
As compared to other loans, the interest rates of HSA are very low. You need to contact your bank or the financial institution to get complete information about the interest rates. Some provide HSA at 4-8% interest rates. It may vary from one bank or institution to another.
Documents Needed to Open Health Savings Account
Here, we are providing some necessary documents by which you can easily open your HSA account.
- Any govt approved Identity proof like driving license, Aadhar card, or Passport.
- Address Proof like Aadhar card, Passport, Ration Card
- A passport-size photo
- A minimum balance of about 25000 in the bank’s savings account.
- Once you have these documents ready, you can easily apply for the Health Saving account.
Process to Get a Health Saving Account
There are two different processes by which you can get a Health savings account from a good financial institution. Follow these guidelines below:
Online process: You can search for a reliable banking institution online and apply for the HSA from the comfort of your home. The online process is always preferred because it is the era of digital transformation and online services are available on the web. You just need a laptop or PC and a stable internet connection.
Offline procedure: If you are not tech-savvy, then you can easily contact your lender in order to learn the offline procedure for opening a Health savings account to tackle financial issues while dealing with medical emergencies. In this procedure, you need to visit your bank or financial institution and submit all the required documents in the prescribed format. Also, you are required to get an account opening form from your bank and get it completed with all the details. Submit this document to the account opening counter.
Advantages of Opening a Health Saving Account
There are several benefits of opening an account related to Health Savings. To know, read all the steps:
- Tax benefits
- Withdrawal money won’t be taxed at any stage
- You can easily use your funds to sponsor the medical expenses of any of your family members even if they have claimed your taxed amount.
- The contribution towards the HSA will incur interest such as other saving accounts.
- You will get an HSA card as a health security card
- HSA are provided by employers and it can be availed individually.
Summary
A health savings account is a type of account in which you will get financial assistance in case of any medical emergency. You can easily tackle money crunch issues and your amount won’t be taxed at any stage. The application procedure is very straightforward and you can apply online and offline both.
