Webster Bank’s health savings account division says its deposits have doubled in three years to more than $1 billion.
HSA Bank CEO Dean Mason says the strong deposit growth reflects the embrace of health savings accounts as a mainstream healthcare option as well as the bank’s “zealous commitment” to customer service.
Depositors contribute funds tax-free to their health accounts and may withdraw funds at any time without tax liability or penalty to pay for qualified medical expenses. Employers typically offer the accounts as a benefit to workers.
Based in Sheboygan, Wis., HSA Bank launched into servicing this niche in 1997, drawing customers ranging from individuals to Fortune 500 companies.
“We have seen the popularity of HSAs skyrocket with employers and consumers in 2010 and entering 2011,” said Kirk Hoewisch, president of HSA Bank. “But reaching $1 billion is an important milestone for the HSA industry as well as HSA Bank.”
