eBrief: Credit Unions Offering HSAs Grow Members More Than 2x Faster

Health Savings Accounts aren’t just about deposits—they’re about building relationships


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.




Aug. 26, 2010


  • Excellent points! I'd perhaps clarify that HSAs are more an effect than a cause. CUs with closer member relationships and more growth tend to be the ones offering HSAs in the first place. CUs with poor growth or that don't realize the demand might be reluctant to go to the trouble.

    And adding an HSA makes all the relationships in the household extraordinarily sticky.
    Brian Wringer