Skip to main content
Back to articles

How to save for the unexpected

Is there a way to prepare for the unexpected?

The best way to save is to make a plan and set up a savings account as an emergency fund for when unexpected expenses arise. When learning about your savings account options, know that there are different types of savings accounts to fit your specific needs.

Unexpected medical bills are one of the more common ways people can experience debt. Fortunately, there is a customized savings account that allows you to prepare for those situations. This type of savings account is called a health savings account (HSA).

What is a health savings account?

A health savings account is exactly what it sounds like; it’s a savings account for those planned and unplanned medical expenses that pop up in life. This is a tax-advantaged savings account used to pay, or reimburse, for qualified medical expenses.

Are there benefits to an HSA?

In simple terms, there are several benefits to an HSA. Let’s talk about it:

  • Health savings accounts are funded with pre-tax contributions and, when used for qualified medical expenses, withdrawals are tax free.
  • These accounts are not subject to the “use-it-or-lose-it” rule which means funds properly contributed but not spent are not lost at year end.
  • You also get to keep the account and the unspent funds you have contributed if you change jobs or retire!
  • These types of accounts do require a high deductible health plan though and, as always, you should consult your tax advisor for tax related advice and opinions.

Let’s review:

Don’t wait to save. Prepare your savings before an unexpected medical expense pops up in your life by opening a health savings account. Contact us with any questions you have about opening an account!

More articles from our Learning Center:

Checking accounts: Understanding the basics

Checking accounts: Understanding the basics

What is a checking account?

A checking account is what makes it possible to complete daily financial transactions. It is a...
Fraud alert: Banks don’t do that

Fraud alert: Banks don’t do that

Scammers target everyone, including you.

Banks ask a lot of questions, but there are certain things banks will never do. In 2021, the...
Interest: Explained

Interest: Explained

What is interest?

Interest is the cost of borrowing money or the amount you are charged for using someone else’s...
Tips to build your credit

Tips to build your credit

Kick-start your credit with a secured credit card

Your credit score showcases your credit history and where you are right now in your financial...
5 things small business owners didn’t know they needed

5 things small business owners didn’t know they needed

Find out what you need to make your business thrive

Being a small business owner means wearing different hats. Sometimes you are filling a need in yo...
How to save at any age

How to save at any age

Is there a right way to start saving?

We all remember stashing away coins in a piggy bank as one of the first ways we learned to save. ...
There was an error retrieving results
Load More