Since the medical insurance is quite complicated in the U.S., it is not rare that people undergo a medical procedure which turns out not to be covered by their medical insurance. In such situations, it comes as a relief if you have a certain amount of money saved for medical expenses. That is exactly what the health savings accounts are for. They are created so that they cover a single individual, their spouse or even both of them. They have their good and bad sides just like all other types of bank accounts.
Let us start with the advantages of health savings accounts. The first one is their convenience, since most of them are connected to a debit card. This means that, if you happen to undergo any medical treatment or procedure that is not covered by the insurance. You will be able to pay for the treatment and medications immediately without waiting for the medical bill to come. You can contact your card issuer and notify them to pay for the cost through your card, or you can even use it on an ATM, withdraw the money and pay in cash.
Another advantage of health savings accounts is that the money deposited on such accounts is not subject to the federal income taxes. This is especially convenient both for you and your employer if he is one of the account’s contributors. While we are at the contributors, another positive aspect of this account is that the contributor can be anyone, not necessarily only you or your employer. It can be your spouse, children, parents or relatives. Flexibility is another aspect to be mentioned o the plus side. As already mentioned, you usually get a debit card with this account and you can pay either directly through it or using the amount of cash you withdraw from it.
Additionally, you can use it if you change the health care provider and the funds on the card are rolled over every year, not requiring you to spend them before the year expires. Lastly, some health savings accounts come with an interest. So you can even cumulate some interest money over the months or years and end up having more money on this account than you have originally deposited.
When it comes to disadvantages, there are some of them to mention as well. Since the account does not require you a fixed amount of money to deposit nor it prescribes the minimum amount to deposit every month, you may neglect this account and find yourself in a situation where you will not have enough funds for a medical treatment.
Another disadvantage is that there may be some additional fees you will need to pay even if you cover for the treatment costs – some medications and medical treatments paid with funds from this account require paying the additional fees to the bank where you have the account. Lastly, this account requires you to keep record of all the funds you deposit or withdraw, as well as the medical expenses you have, in order to be sure that there are enough funds on the account and that you can count on them.
Having a checking or a savings account has become very common and usual, and more and more individuals nowadays have one or even several bank accounts. There are many different types of the accounts, meant for different purposes and based on different terms and conditions, and they are nevertheless becoming a necessity of individuals in modern society. If you are an individual and a private entity, you can still live without a bank account. However, if you own a small business, having a bank account is a necessity you simply cannot work without.
Unlike personal bank accounts, business accounts usually come with larger fees and different terms and conditions, so it may not be easy to find the best solution for your business account without losing too much money on service and all sorts of other fees. Still, there are ways to significantly reduce or even completely avoid certain fees, and in this article you will read a few suggestions on how to choose a bank account for a small business.[/box]
First of all, it is crucial to know the needs of your business in terms of the bank account. For example, if you handle a lot of money through your business and its bank account, it is important to choose the account with as low cash handling fees as possible, or with no cash handling fees at all. Choosing the bank account that matches your business policy and methods can save you up a lot of money on yearly basis.
Most savings and checking accounts charge a monthly service fee, which is a fee for maintaining the account. It can be a fixed amount or include a percentage of monthly incomes, and it is on average $13 for personal accounts, while for the business account it is lower and ranges between $5 and $10 per month. However, there are banks that do not charge monthly service fees, but they usually require you to keep a certain amount of money on the account at all times. If you can afford to keep that amount on the account, than you can save money on the maintenance fee and pay nothing for it.
Most banks offer a range of benefits to their loyal customers, so if you own a small business, it is recommended that you stick with one bank. The bank will usually offer you certain discounts and special services if you join all your accounts within that bank. Also, it helps you keep track of the transactions and funds you have available, while it also helps you save some money when you use the discounts and special offers from the bank.[/box]
In order to save some money on fees the traditional banks usually have, you may consider opening an account in a community bank, since they offer a range of conveniences for small business owners and they have the lowest fees. Also, you can choose an online bank for the same reasons. Many business owners and individuals still do not feel comfortable of having a virtual account, but online accounts are very small business-friendly.