
These days, people with traditional health insurance consider themselves fortunate, especially since millions of Americans aren't so lucky. Many constantly scramble to make sure they have even a minimum amount of coverage for themselves and their families.
High deductible insurance policies have become more popular in recent years, largely because the monthly premiums are lower. But the downside is that a high deductible (defined by the Internal Revenue Services as $1,250 or more) can create a different kind of pressure on the family budget.
That's where Health Savings Accounts come in. A Health Savings Account, or HSA, is a specific kind of account that allows you to set aside pre-tax money to use for medical expenses.
For example, in 2014, an individual with self-only coverage is able to contribute up to $3,300 to a Health Savings Account; an individual with family coverage can kick in $6,550, according to the IRS's rules for Health Savings Accounts. (Check with a tax professional to be sure which rules apply to your personal situation.)
Using these accounts and others as a safeguard for your financial health may be a great idea. According to The Fragile Middle Class: Americans in Debt (Sullivan TA, Warren E, Westbrook JL. New Haven CT: Yale University Press; 2000), 62.1 percent of personal bankruptcies are medically related, with medically bankrupt families having an average of $17,943 in expenses. And insurance isn't enough to protect most families from the expenses incurred during a major illness. Three-quarters of the people in the study with a medically related bankruptcy had health insurance.
A Back-Up Plan for Your Back-Up Plan
Given those numbers, having adequate savings is just smart preventive medicine. So while a Health Savings Account is a great way to start building a safety net, you may need a “back-up for your back-up” when you consider the caps on the amounts you can contribute to HSAs. Although a money market account is not a health savings account, it can be a good tool for building up your savings to supplement your HSA.
With an Ally Bank Money Market Account, you can open and fund your account with any amount and get a variable rate that's consistently among the most competitive in the country according to rates published by MyBankTracker. Unlike many banks, we won't charge monthly maintenance fees or ATM fees and we'll even reimburse any ATM fees charged by other banks nationwide. You'll also get free standard checks and a debit card you can use to make up to six withdrawals per statement cycle.
Learn more at Allybank.com or call our 24/7 customer care line at 877-247-ALLY (2559).
Comment on this article
Comments
Laura R. on March 30, 2018 at 2:00am
Are there plans for Ally to offer an HSA in the near future?
Ally on April 2, 2018 at 12:06pm
Hi Laura, we don't have anything in the pipeline currently, but we'll pass your request for this offering along to the rest of the team. Thanks for your interest!
Scott W. on May 16, 2018 at 11:27am
Hi. I too would be interested in opening an HSA.
Ally on May 21, 2018 at 9:39am
Thanks for sharing your input, Scott. We appreciate the feedback!
Mark on November 13, 2018 at 12:10pm
I'm looking for 1 stop shopping. Why don't you offer an HSA. What the heck? :)
Ally on November 15, 2018 at 9:56am
Hi Mark, we don't currently offer an HSA, but appreciate your feedback. We'll pass your interest along to the team!
Houston T. on November 21, 2018 at 12:14pm
I wan't a health savings account too... Would love one from ally. That's where I do everything else!
Ally on November 26, 2018 at 10:49am
Hi Houston, thanks for your interest! We'll pass your request along to the team.
Kristin S. on January 23, 2019 at 3:04pm
I just started looking into HSAs. All my bank and investment accounts are with Ally. I'd like to put in a vote for Ally to start offering HSAs as well. Thanks!
Ally on January 24, 2019 at 4:34pm
Hi Kristin, thanks for sharing that feedback. We'll pass your request along!
Jesse on September 4, 2019 at 1:14pm
I need HSA at ally please!
Ally on September 6, 2019 at 5:26pm
Hi Jesse, we don’t currently offer consumer HSAs. Thank you for your comment and I will pass along your feedback to our team.
Rick H. on November 1, 2019 at 12:39pm
Here's another up vote for Ally to start offering HSA accounts.
Ally on November 6, 2019 at 4:50pm
Hi Rick, thanks for the comment. We will pass your feedback along to our team.
ROBERT L. on July 10, 2020 at 4:55pm
I'm also searching for a HSA provider. That would be a great addition to your services.
Ben on July 31, 2020 at 3:52pm
I am a current ally customer and just found out that HSA don't have to be sponsored by the High deductible health insurance plan. Ally Should work on opening up their own or utilizing a provider like HealthEquity seemlessly into the Ally platform.
John on December 26, 2020 at 11:52pm
I'm a Ally member and I love yalls products, I would love to open an HSA if yall ever offered one in the future
Ally on December 26, 2020 at 11:53pm
Thanks for being an Ally customer, John! 😊
Luis P. on October 12, 2021 at 12:39am
Please institute HSA here at Ally Bank! I would move my funds from Optum to ALLY in a heartbeat.
Ally on October 12, 2021 at 12:40am
Hi Luis, we appreciate your feedback, and we’ll be sure to share this with our team for further consideration.
Joe on November 30, 2021 at 6:01pm
Here's an additional vote for an Ally HSA and how about an MSA medical savings account too!
Dan on July 10, 2022 at 3:18pm
I've been super happy with my decision to move my savings to Ally, and would love to have the option of opening an HSA with them as well. It looks like I'll need to find a similar bank to open one with in the meantime, but I'll join the other commenters here in expressing my interest in an Ally HSA down the road :)
Ally on July 10, 2022 at 3:19pm
Hi, we appreciate your feedback and we’ll be sure to share this with our team. Thanks being an Ally customer!