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May 03, 2006
Custodial Health Savings Account Funding Nearly Doubled In 1st Quarter 2006
Not only are the number of Health Savings Accounts going up but the amounts deposited with custodial institutions are also soaring, according to preliminary quarterly reports from more than 100 banks.
In conducting its quarterly survey of HSA custodial banks, Information Strategies, Inc. is finding that average dollar deposits have gone beyond the $2,000 mark.
HSA banks report the number of accounts are moving upward in a trend that will result in more 3.6 million by the end of the year. At the same time, banks report seeing significant indications that depositors are funding their accounts to the maximum allowed by regulators.
In several cases, banks are reporting that average deposits nearly doubled from year-end totals.
The bank survey is in the process of being completed and will appear later in May.
This report is in line with results from ISI’s latest user poll which indicated that a majority of health savings account owners planned to keep funds in their HSA accounts for either emergencies or retirement.
Posted by Wiley Long at May 3, 2006 08:29 AM