Principal HSA Products & Rate Information
Funds in your Health Savings Account (HSA) grow tax-deferred until you need them - now or in retirement. The money in the account belongs to you, even if you change jobs, and is always yours to use as needed. There is no 'use-it-or-lose -it' provision with Health Saving Accounts so your contributions carry over from year to year, allowing you to accumulate significant savings for the future.
Available Principal HSA Products:
- Principal Health Savings Account
- Health Savings Account Certificates of Deposit
- Health Savings Account Mutual Funds
Principal Health Savings Account - Apply now
The Principal Health Savings Account was developed for consumers enrolled in a non-Principal High Deductible Health Plan, and delivers a number of unique advantages.
- The convenience of a checking account and debit card - simply present a check or debit card to pay for covered medical expenses.
- Competitive interest rates on HSA checking funds - accounts of all sizes earn interest.
- Flexible funding options - employers, employees or anyone else can contribute.
- True member ownership - the money in the account belongs to you, even when you change jobs or retire, and is always yours to use as needed. Plus, the account can be transferred tax-free to a spouse (or former spouse) upon the death of the account owner.
- Potential retirement medical benefits - after retirement, the funds can continue to be used tax-free for qualifying healthcare costs, prescription drugs and some Medicare expenses.
- Long-term savings benefits - after age 65, the funds can be used for any purpose, though regular income taxes apply to nonqualified withdrawals.
FDIC Insured up to $100,000 per depositor
| Features | Feature Detail |
|---|---|
| Deposits | Payroll deduction with automatic deposit Or, send deposits to Principal Bank with a HSA deposit slip |
| Withdrawals* | Up to 6 free per statement cycle (monthly), by check or debit card |
| Minimum Balance | None required |
| Debit Card | Free |
| Checks | First order is free |
| Enrollment Fee | $25 (one-time) |
| Account Fee | $2.00 (plus tax) per month |
| Interest Rates |
See the Terms and Conditions (PDF: 130 KB) for additional information.
* Excess transaction fee - $10 per item.
Health Savings Account Certificates of Deposit
In addition to HSA checking accounts, Principal Bank offers HSA Certificates of Deposit in 1-year, 3-year and 5-year terms. If you've accumulated enough in your HSA checking account to cover your medical insurance deductible plus any other anticipated out-of-pocket medical expenses, you may want to deposit excess funds in an HSA CD to earn a higher interest rate.
HSA CDs are also an attractive alternative for transfers or rollovers from an Archer Medical Savings Account (MSA) or excess funds in a Health Savings Account at another financial institution.
The minimum deposit for an HSA CD is $1000; interest rates on these CDs are tiered, with HSA CDs of $10,000 or more earning higher rates. You may also make additional contributions to your HSA CD once each year without affecting the original maturity date or the original rate. For example, you may purchase an HSA CD with a 5-year term, depositing $1000 to open the CD. Each year you may make an additional deposit of not more than $5000 to your HSA CD, instead of opening a new CD each year.
Health Savings Account Certificate of Deposit Rates
Please note that the rate received for the entire term of the CD is based upon the initial opening deposit amount, and will not change during the term of the CD even if your balance fluctuates due to withdrawals or additional contributions. Early withdrawal penalties will reduce earnings. See Truth in Savings disclosure (PDF: 130 KB) for additional information.
To open a HSA CD
If you currently have a Principal Health Savings Account, complete the HSA CD Application (PDF: 95 KB) and return to Principal Bank.
If you have not yet opened a Principal Health Savings Account, please complete the HSA CD Application (PDF: 95 KB) and return it with your initial CD deposit.
If you want to Transfer or Rollover an Archer Medical Savings Account (MSA) to a Principal HSA CD, please complete the Transfer (PDF: 86 KB) or Rollover (PDF: 86 KB) Form, and the HSA CD Application (PDF: 95 KB) and return them to Principal Bank.
Principal Bank personal bankers are available 24 hours every day to assist you or answer questions, so give us a call anytime, day or night, at 1.800.826.2364.
Health Savings Account Mutual Funds
In addition to Principal HSA Checking and CDs, more than 40 mutual fund options offered by Princor Financial Services Corporation are available for your Health Savings Account.
Princor Financial Services Corporation, a member of the Principal Financial Group, has for more than 30 years offered a variety of mutual funds to help customers meet their long-term financial goals.
Our licensed registered representatives can provide further information about mutual fund options for the Principal Health Savings accounts.
For more information please call us at 1.800.826.2364.
Bank products and services provided by Principal Bank, Member FDIC, Equal Housing Lender. HSA monies held in a Principal Bank account are FDIC insured. Securities offered through Princor Financial Services Corporation, 1.800.247.4123, member SIPC. HSA monies held in an account at Princor Financial Services Corporation are not FDIC insured, have no bank guarantee and may lose value. Principal Life, Principal Bank, and Princor® are members of the Principal Financial Group.
