Today, more than 680 credit unions offer Health Savings Accounts (HSAs) to their members. These credit unions, from $1.4 million Carter County (MT) to $20 billion State Employees Credit Union (NC), collectively hold more than $330 million in health deposits. So why would any credit union be looking to attract new deposits?
Because health savings accounts aren’t just about deposits — they’re about building relationships. Credit unions offering HSAs grew their membership by 3.8% versus just 1.5% for those without HSAs. In addition, these credit unions have 11% larger average member relationships ($15,946 versus $14,339) and slightly more products per member (2.5 accounts versus 2.3 accounts). (All data is as of March 31, 2010)
Source: Callahan & Associates' Peer-to-Peer Software
And to address the concern over deposits: HSA deposits still represent just a tiny fraction of total shares — just 0.13% — so HSAs by themselves aren’t going to dramatically change a credit union’s overall share growth.
The market opportunity is huge. An estimated 45% of employers currently offer an HSA-eligible high-deductible healthcare plan, and that is expected to rise as small businesses rush to comply with new healthcare legislation. Now is the time to get into healthcare banking.