30:["$","$L31",null,{"category":"$32","relatedArticles":[{"id":"cG9zdDoyNjUxNjE=","databaseId":265161,"postId":265161,"author":{"node":{"id":"dXNlcjoz","databaseId":3,"userId":3,"avatar":{"url":"https://secure.gravatar.com/avatar/3b02fac7ed4b968df109a1571de56eef337973ae16dead35422edea7ab805eb9?s=96&d=mm&r=g","size":96,"__typename":"Avatar"},"description":"SmartAsset employs a team of writers and editors with years of experience in the editorial, news and personal finance industries. Some staff members also hold the Certified Educator in Personal Finance (CEPF®) designation from the Institute for Financial Literacy.","additionalMeta":{"expertise":null,"__typename":"User_Additionalmeta"},"email":null,"firstName":"Michael","fullName":"SmartAsset Team","lastName":"Carvin","name":"SmartAsset Team","postCount":{"pageInfo":{"offsetPagination":{"total":1673,"__typename":"OffsetPaginationPageInfo"},"__typename":"UserToPostConnectionPageInfo"},"__typename":"UserToPostConnection"},"slug":"mcarvin","__typename":"User"},"__typename":"NodeWithAuthorToUserConnectionEdge"},"categories":{"nodes":[{"id":"dGVybToxOTUyMA==","children":{"nodes":[],"__typename":"CategoryToCategoryConnection"},"databaseId":19520,"categoryId":19520,"link":"https://smartasset.com/certificate-of-deposits/articles","name":"Certificate of Deposits","postCount":{"pageInfo":{"offsetPagination":{"total":22,"__typename":"OffsetPaginationPageInfo"},"__typename":"CategoryToPostConnectionPageInfo"},"__typename":"CategoryToPostConnection"},"slug":"certificate-of-deposits","ancestors":{"nodes":[{"name":"Checking Account","slug":"checking-account","__typename":"Category"}],"__typename":"CategoryToAncestorsCategoryConnection"},"parent":{"node":{"name":"Checking Account","id":"dGVybTo0NzIx","slug":"checking-account","__typename":"Category"},"__typename":"CategoryToParentCategoryConnectionEdge"},"__typename":"Category"}],"__typename":"PostToCategoryConnection"},"content":"$33","date":"2024-10-14T12:43:23","excerpt":"

\n","featuredImage":{"id":"cG9zdDoyNjUxNjI=","databaseId":265162,"altText":"An investor researching whether she should add liquid CDs to her portfolio.","date":"2024-10-14T12:37:22","fileSize":160110,"mimeType":"image/jpeg","modified":"2024-10-14T12:42:31","sourceUrl":"https://smartasset.com/wp-content/uploads/sites/2/2024/10/iStock-1044829932.jpg","__typename":"MediaItem"},"modified":{"datetime":"2024-10-14","readable":"October 14, 2024","readableExtended":"October 14, 2024, 12:43pm ET"},"multipleBylinesByRole":{"editedBy":{"id":"dXNlcjo5Mw==","databaseId":93,"userId":93,"avatar":{"url":"https://secure.gravatar.com/avatar/45e9da41857bacf2d253783adac5d9d20d9dbe4758f7c9712c3759bcec7a34aa?s=96&d=mm&r=g","size":96,"__typename":"Avatar"},"description":"Mark Henricks has reported on personal finance, investing, retirement, \r\nentrepreneurship and other topics for more than 30 years. His freelance \r\nbyline has appeared on CNBC.com and in The Wall Street Journal, The New York Times, The Washington Post, Kiplinger’s Personal Finance and other leading publications. Mark has written books including, “Not Just A Living: The Complete Guide to Creating a Business That Gives You A Life.” His favorite reporting is the kind that helps ordinary people increase their personal wealth and life satisfaction. A graduate of the University of Texas journalism program, he lives in Austin, Texas. In his spare time he enjoys reading, volunteering, performing in an acoustic music duo, whitewater kayaking, wilderness backpacking and competing in triathlons.","additionalMeta":{"expertise":null,"__typename":"User_Additionalmeta"},"email":null,"firstName":"William","fullName":"Mark Henricks","lastName":"Henricks","name":"Mark Henricks","postCount":{"pageInfo":{"offsetPagination":{"total":826,"__typename":"OffsetPaginationPageInfo"},"__typename":"UserToPostConnectionPageInfo"},"__typename":"UserToPostConnection"},"slug":"mhenricks","__typename":"User"},"reviewedBy":null,"writtenBy":{"id":"dXNlcjoz","databaseId":3,"userId":3,"avatar":{"url":"https://secure.gravatar.com/avatar/3b02fac7ed4b968df109a1571de56eef337973ae16dead35422edea7ab805eb9?s=96&d=mm&r=g","size":96,"__typename":"Avatar"},"description":"SmartAsset employs a team of writers and editors with years of experience in the editorial, news and personal finance industries. Some staff members also hold the Certified Educator in Personal Finance (CEPF®) designation from the Institute for Financial Literacy.","additionalMeta":{"expertise":null,"__typename":"User_Additionalmeta"},"email":null,"firstName":"Michael","fullName":"SmartAsset Team","lastName":"Carvin","name":"SmartAsset Team","postCount":{"pageInfo":{"offsetPagination":{"total":1673,"__typename":"OffsetPaginationPageInfo"},"__typename":"UserToPostConnectionPageInfo"},"__typename":"UserToPostConnection"},"slug":"mcarvin","__typename":"User"},"factCheckedBy":null,"secondEditor":{"id":"dXNlcjoxMTc=","databaseId":117,"userId":117,"avatar":{"url":"https://secure.gravatar.com/avatar/ec94ef289aaaff921cceaadb51aba5e4ac1e9d0ca6d0ca8350c24e727726c750?s=96&d=mm&r=g","size":96,"__typename":"Avatar"},"description":"Arturo Conde is a senior editor at SmartAsset. He has a master’s from the Graduate School of Journalism at Columbia University and a bachelor’s from the College of Arts and Science at New York University. As a certified educator in personal finance, he edits and writes content that focuses on retirement, investments, home buying and other financial topics.\r\n\r\nArturo is a bilingual native in English and Spanish, and also writes as a freelance journalist for NBC News, among other publications. 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In his spare time he enjoys reading, volunteering, performing in an acoustic music duo, whitewater kayaking, wilderness backpacking and competing in triathlons.","additionalMeta":"$35","email":null,"firstName":"William","fullName":"Mark Henricks","lastName":"Henricks","name":"Mark Henricks","postCount":"$36","slug":"mark-henricks","__typename":"User"},"reviewedBy":null,"factCheckedBy":null,"secondEditor":{"id":"dXNlcjoxMTc=","databaseId":117,"userId":117,"avatar":"$39","description":"Arturo Conde is a senior editor at SmartAsset. He has a master’s from the Graduate School of Journalism at Columbia University and a bachelor’s from the College of Arts and Science at New York University. As a certified educator in personal finance, he edits and writes content that focuses on retirement, investments, home buying and other financial topics.\r\n\r\nArturo is a bilingual native in English and Spanish, and also writes as a freelance journalist for NBC News, among other publications. 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Unlike a traditional savings account that lets you access funds at any time, certificates of deposit (CDs) require you to lock in your money for a predetermined period from a few months to several years. This commitment often results in higher interest rates than what conventional savings accounts pay. But, if you withdraw before the CD’s maturity, you will owe a penalty. If you want more liquidity than a traditional CD and can accept a somewhat lower interest rate, a liquid CD provides an alternative blending aspects of savings accounts and CDs.

","

A financial advisor can help you determine how liquid CDs and other types of investments could fit into your financial plan.

","

What Is a Liquid Certificate of Deposit?

","

A liquid certificate of deposit (CD), also known as a no-penalty CD, combines the benefits of a traditional CD with the flexibility of a savings account. Unlike standard CDs, which typically lock your money away for a set term with penalties for early withdrawal, liquid CDs allow you to access your funds without incurring fees.

","

Liquid CDs generally offer lower interest rates when compared with traditional CDs due to their added flexibility. However, they still tend to provide better returns than standard savings accounts. The terms for liquid CDs can vary, often ranging from a few months to several years. Interest rates and terms offered by different financial institutions may also vary significantly.

","

How Fast Can You Withdraw Funds From a Liquid CD?

","

Typically, liquid CDs allow for penalty-free withdrawals after a short initial holding period, which can range from a few days to a few months. Once this period has passed, you can usually access your funds quickly, often within one to two business days. Check with your financial institution to confirm their specific withdrawal procedures and any potential limitations.

","

Several factors can influence how fast you can withdraw funds from a liquid CD. The bank’s processing times, the method of withdrawal you choose and any specific terms outlined in your CD agreement all play a role. For example, electronic transfers might be faster than requesting a physical check. Additionally, some banks may have daily or monthly withdrawal limits. Be aware of these restrictions.

","

Pros and Cons of a Liquid CD

","

","

One of the primary benefits of a liquid CD is its accessibility. Investors can withdraw funds before the maturity date without facing the hefty penalties typically associated with early withdrawals from traditional CDs. This makes liquid CDs an option for individuals who anticipate needing access to their funds but still want to earn a competitive interest rate.

","

Additionally, liquid CDs are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000. This level of security is reassuring for risk-averse investors.

","

The most notable disadvantage is the lower interest rate when compared with traditional CDs. This means that while you gain flexibility, you might sacrifice some potential earnings.

","

Furthermore, some financial institutions may impose restrictions on the number of withdrawals you can make or require a minimum balance to maintain the account. These conditions can limit the overall flexibility that makes liquid CDs appealing in the first place.

","

Liquid CDs are suited for individuals who value both security and flexibility in their investments. They can be appropriate for people who may need to access their funds unexpectedly, such as retirees or individuals saving for a short-term goal. However, if maximizing returns is your primary objective, you might want to explore other investment options that offer higher yields.

","

Liquid Alternatives to a Certificate of Deposit

","

A number of alternatives to a certificate of deposit can offer more flexibility and potentially higher returns. Below are some five popular options:

","$45","

Bottom Line

","

","

Traditional CDs require you to lock in your money for a fixed term, ranging from a few months to several years. Withdrawing funds before the maturity date typically incurs penalties, which can reduce the interest earned and even lower the principal amount. This lack of flexibility makes traditional CDs less suitable for those who might need quick access to their funds. Liquid CDs, on the other hand, can offer a more flexible alternative. These allow you to withdraw money without penalties, while paying a somewhat lower interest rate than conventional CDs.

","

Investment Tips

","$46","

Photo credit: ©iStock.com/Deagreez, ©iStock.com/izkes, ©iStock.com/RgStudio

"],"experts":null,"link":"/checking-account/are-certificates-of-deposit-liquid","modifiedIso":"2024-10-14T12:43:24.000Z","published":{"datetime":"2024-10-14","readable":"October 14, 2024","readableExtended":"October 14, 2024, 12:43pm ET"},"publishedIso":"2024-10-14T12:43:23.000Z","shareInfo":{"title":"How Liquid Are Certificates of Deposit (CDs)?","origin":"/checking-account/are-certificates-of-deposit-liquid"},"isNewsArticle":true},{"id":"cG9zdDoxNzM3MzY=","databaseId":173736,"postId":173736,"author":{"node":{"id":"dXNlcjoxMzI=","databaseId":132,"userId":132,"avatar":{"url":"https://secure.gravatar.com/avatar/25ddb2bfcdff5bc7b5146def5df56636285ed3e8d40a4f2ca3c2179af0542722?s=96&d=mm&r=g","size":96,"__typename":"Avatar"},"description":null,"additionalMeta":{"expertise":null,"__typename":"User_Additionalmeta"},"email":null,"firstName":"Bob","fullName":"Bob Haegele","lastName":"Haegele","name":"Bob Haegele","postCount":{"pageInfo":{"offsetPagination":{"total":110,"__typename":"OffsetPaginationPageInfo"},"__typename":"UserToPostConnectionPageInfo"},"__typename":"UserToPostConnection"},"slug":"bhaegele","__typename":"User"},"__typename":"NodeWithAuthorToUserConnectionEdge"},"categories":{"nodes":[{"id":"dGVybToxOTUxOA==","children":{"nodes":[],"__typename":"CategoryToCategoryConnection"},"databaseId":19518,"categoryId":19518,"link":"https://smartasset.com/savings-accounts/articles","name":"Savings Accounts","postCount":{"pageInfo":{"offsetPagination":{"total":54,"__typename":"OffsetPaginationPageInfo"},"__typename":"CategoryToPostConnectionPageInfo"},"__typename":"CategoryToPostConnection"},"slug":"savings-accounts","ancestors":{"nodes":[{"name":"Checking Account","slug":"checking-account","__typename":"Category"}],"__typename":"CategoryToAncestorsCategoryConnection"},"parent":{"node":{"name":"Checking Account","id":"dGVybTo0NzIx","slug":"checking-account","__typename":"Category"},"__typename":"CategoryToParentCategoryConnectionEdge"},"__typename":"Category"}],"__typename":"PostToCategoryConnection"},"content":"$47","date":"2022-10-11T16:10:55","excerpt":"

\n","featuredImage":{"id":"cG9zdDoxNzM3Mzc=","databaseId":173737,"altText":"SmartAsset: Savings Account Fees: How Much Do They Cost?","date":"2022-11-08T18:21:33","fileSize":46789,"mimeType":"image/jpeg","modified":"2022-11-08T18:21:33","sourceUrl":"https://smartasset.com/wp-content/uploads/sites/2/2022/10/iStock-1172587260.jpg","__typename":"MediaItem"},"modified":{"datetime":"2022-11-8","readable":"November 8, 2022","readableExtended":"November 8, 2022, 6:21pm ET"},"multipleBylinesByRole":{"editedBy":null,"reviewedBy":null,"writtenBy":null,"factCheckedBy":null,"secondEditor":null,"hideAuthor":null,"__typename":"Post_Multiplebylinesbyrole"},"adTargetingOverrides":{"fieldGroupName":"adTargetingOverrides","pageGroupNewKey":null,"__typename":"Post_Adtargetingoverrides"},"seo":{"canonical":"https://smartasset.com/checking-account/savings-account-fees-how-much-do-they-cost","metaDesc":"Standard savings accounts typically come with monthly maintenance fees and excessive withdrawal fees. Here’s what to expect and when to get them waived.","metaKeywords":"","metaRobotsNofollow":"follow","metaRobotsNoindex":"index","readingTime":5,"title":"Savings Account Fees: How Much They Cost? - SmartAsset","__typename":"PostTypeSEO"},"slug":"savings-account-fees-how-much-do-they-cost","status":"publish","title":"Savings Account Fees: How Much Do They Cost?","postType":"post","subtitle":null,"uri":"/checking-account/savings-account-fees-how-much-do-they-cost","tags":{"nodes":[],"__typename":"PostToTagConnection"},"__typename":"Post","adPageGroupOverride":null,"bylines":{"writtenBy":{"id":"dXNlcjoxMzI=","databaseId":132,"userId":132,"avatar":"$48","description":null,"additionalMeta":"$49","email":null,"firstName":"Bob","fullName":"Bob Haegele","lastName":"Haegele","name":"Bob Haegele","postCount":"$4a","slug":"bob-haegele","__typename":"User"},"editedBy":null,"reviewedBy":null,"factCheckedBy":null,"secondEditor":null},"category":{"id":"dGVybToxOTUxOA==","children":"$4d","databaseId":19518,"categoryId":19518,"link":"https://smartasset.com/savings-accounts/articles","name":"Savings Accounts","postCount":54,"slug":"savings-accounts","ancestors":"$4f","parent":"$52","__typename":"Category"},"isModifiedBeforePublished":false,"contentBlocks":["

Standard savings accounts typically come with monthly maintenance fees and excessive withdrawal fees. While some banks charge these fees to hold your money, others waive these fees entirely. Savings account fees are the opposite of what most people want. After all, these accounts are a place to hold your money for safe keeping and perhaps earn some interest. But savings account fees run counter to that goal, eating into your account balance. Here’s what to expect and when you could get them waived.

","

A financial advisor can help you compare different options for your savings needs and goals.

","

Types of Savings Account Fees

","

There are many fees banks might charge, such as monthly maintenance fees and inactivity fees. While banks might waive these fees in some cases, keep in mind that traditional banks tend to be more likely to charge these fees than online banks. Here are some common savings account fees.

","

1. Monthly Maintenance Fees

","

Monthly maintenance fees are one of the most common fees you will face with savings accounts. Banks charge these fees simply to hold your money. Most other fees only appear under certain circumstances, such as when you try to withdraw money too often.

","

This fee varies by bank, but it is usually in the range of $1 to $8 per month. Most banks will waive monthly maintenance fees, but only if you maintain a certain balance.

","

In most cases, you must keep $100 to $500 in your account, either daily or monthly, to avoid maintenance fees. If you fail to meet that requirement, you might be charged a fee for each month your balance is below the minimum.

","

Here are monthly maintenance fees for savings accounts from major banks – and how to avoid them:

","

Bank Name	Monthly Maintenance Fee	Minimum to Waive Fee
Bank of America	$8	$500 daily balance
Wells Fargo	$5	$300 daily balance
Chase	$5	$300 daily balance
U.S. Bank	$4	$300 daily balance
PNC	$5	$300 monthly balance
TD Bank	$5	$300 daily balance

","

2. Excess Withdrawal Fees

","

","

These fees come into play when you make too many withdrawals in one month. You should generally conduct daily transactions with a checking account, not savings.

","

As a result, banks often charge these fees for excessive withdrawals. What constitutes “excessive” can be as few as three withdrawals:

","

Bank Name	Excessive Withdrawal Fee	Max Monthly Withdrawals Before Fee
Bank of America	$10	6
Wells Fargo	$15	6
Chase	$5	6
U.S. Bank	$15	6
PNC	$15	1
TD Bank	$9	6

","

Note that these limits only apply to online transactions. If you withdraw your money via an ATM or at the bank, it won’t count against the limit.

","

3. Inactivity Fees

","

You might also incur fees if you aren’t using your savings account often enough. For example, there might be a fee if your account has no transactions for 12 consecutive months. You’ll be charged this fee every month until there is activity in your account – or until it has a $0 balance.

","

This fee should be in line with other fees mentioned here; you might see a fee of around $15. However, you can avoid it by moving money into your account. You can usually set up an automatic transfer to help avoid these fees. Even if it is a small amount, it will still count as account activity.

","

4. Returned Item Fees

","

Savings accounts don’t usually allow you to write checks, but they will let you deposit checks into your account. If you deposit a check and the party that issues you the check doesn’t have sufficient funds to cover the deposit, you’ll end up with a returned item fee.

","

Unfortunately, there isn’t much you can do to avoid this fee other than only depositing checks from people you trust. Here are the returned item fees for each bank:

","

Bank Name	Returned Item Fee
Bank of America	$12 (domestic); $15 (foreign)
Wells Fargo	$12
Chase	$12
U.S. Bank	$19 (domestic); $25 (foreign)
PNC	$12

","

5. Wire Transfer Fees

","

You might occasionally have to wire money. For instance, wire transfers are common when sensing money internationally. Wire transfers can also be quicker than other methods of sending money, such as writing a check.

","

However, wire transfers come with hefty fees. Here is what to expect:

","

Bank Name	Domestic Incoming	Domestic Outgoing	Foreign Incoming	Foreign Outgoing
Bank of America	$15 (waived if you have certain BofA checking accounts)	$30	$16 (waived with certain BofA rewards programs)	$45 for domestic currency; $35 for foreign currency
Wells Fargo	$15 (can be waived for large transfers)	$30	$16	$40
Chase	$15	$35 or $25 for online transfers	$15	$50 or $40 for online transfers
U.S. Bank	$20	$30	$25	$50
PNC	$15	$30	$15	$45
TD Bank	$15	$25	$15	$40

","

Bottom Line

","

Traditional banks charge several fees for savings accounts, both for monthly maintenance and in certain situations. Fees can be as much as $50 per transaction and can quickly add up.

","

While there are ways to avoid fees with traditional savings accounts, some are tougher to avoid. And if you just don’t have the cash for one month, you might be unable to avoid maintenance fees. Online-only banks often pay higher interest rates (APY) and fewer fees, making them a good alternative for most people.

","

Tips for Opening a Savings Account

","$54","

Photo credit: ©iStock.com/RichVintage, ©iStock.com/Morsa Images, ©iStock.com/fizkes

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A health savings account (HSA) can be a useful way to cover medical expenses with pre-tax dollars. And knowing which treatments count as qualified medical expenses will help you maximize your savings. One common question that account holders have is whether an HSA can be used for a massage. While HSAs cover many healthcare services, […]

\n","featuredImage":{"id":"cG9zdDoyNjU4MTI=","databaseId":265812,"altText":"A massage could qualify as an HSA expense under certain conditions.","date":"2024-10-22T17:24:24","fileSize":188084,"mimeType":"image/jpeg","modified":"2024-10-22T17:29:26","sourceUrl":"https://smartasset.com/wp-content/uploads/sites/2/2024/10/iStock-1962457513.jpg","__typename":"MediaItem"},"modified":{"datetime":"2024-10-22","readable":"October 22, 2024","readableExtended":"October 22, 2024, 5:47pm ET"},"multipleBylinesByRole":{"editedBy":{"id":"dXNlcjoxMTc=","databaseId":117,"userId":117,"avatar":{"url":"https://secure.gravatar.com/avatar/ec94ef289aaaff921cceaadb51aba5e4ac1e9d0ca6d0ca8350c24e727726c750?s=96&d=mm&r=g","size":96,"__typename":"Avatar"},"description":"Arturo Conde is a senior editor at SmartAsset. He has a master’s from the Graduate School of Journalism at Columbia University and a bachelor’s from the College of Arts and Science at New York University. As a certified educator in personal finance, he edits and writes content that focuses on retirement, investments, home buying and other financial topics.\r\n\r\nArturo is a bilingual native in English and Spanish, and also writes as a freelance journalist for NBC News, among other publications. His articles have been published in Fusion, Univision, City Limits, the NACLA Report on the Americas and WhoWhatWhy, as well as La Opinión A Coruña newspaper in Spain.","additionalMeta":{"expertise":"Financial Planning, Retirement Planning, Investment Planning, Tax Planning","__typename":"User_Additionalmeta"},"email":null,"firstName":"Arturo","fullName":"Arturo Conde, CEPF®","lastName":"Conde, CEPF®","name":"Arturo Conde, CEPF®","postCount":{"pageInfo":{"offsetPagination":{"total":38,"__typename":"OffsetPaginationPageInfo"},"__typename":"UserToPostConnectionPageInfo"},"__typename":"UserToPostConnection"},"slug":"aconde","__typename":"User"},"reviewedBy":null,"writtenBy":{"id":"dXNlcjoz","databaseId":3,"userId":3,"avatar":{"url":"https://secure.gravatar.com/avatar/3b02fac7ed4b968df109a1571de56eef337973ae16dead35422edea7ab805eb9?s=96&d=mm&r=g","size":96,"__typename":"Avatar"},"description":"SmartAsset employs a team of writers and editors with years of experience in the editorial, news and personal finance industries. 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A financial advisor can help you create a financial plan that includes HSAs and other tax-advantaged accounts.

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Health Savings Account Basics

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An HSA is a tax-advantaged savings account designed to help individuals with high-deductible health plans (HDHPs) pay for medical expenses. You can contribute money to your HSA pre-tax, which reduces your taxable income. The funds can be used to cover qualified medical expenses such as doctor’s visits, prescription medications and certain treatments.

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HSAs are also known for their triple tax advantage: contributions are tax-deductible, the funds grow tax-free and withdrawals are tax-free if used for eligible healthcare costs.

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Eligibility for an HSA is tied to having an HDHP, which typically has higher deductibles but lower premiums. The 2024 contribution limit for an HSA is $4,150 for individuals and $8,300 for families. If you are over 55, you can also make an additional catch-up contribution of $1,000.

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When weighing the pros and cons of an HSA, one of the key benefits is that the funds never expire, so you can continue saving for medical expenses even into retirement.

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HSAs offer flexibility, as the funds roll over year to year, allowing you to build up savings for future healthcare needs. However, you must understand what counts as a qualified medical expense to avoid penalties or taxes when using your HSA.

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Can You Use Your HSA for a Massage?

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Whether you can use your HSA for a massage depends on why the massage is being performed.

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Generally, HSAs cover treatments that are considered medically necessary, and massages are no exception. If a doctor prescribes massage therapy to treat a specific medical condition–such as chronic pain, injury recovery or other ailments–then the cost of the massage may be a qualified medical expense. In these cases, you will need documentation from your healthcare provider to show that the massage is part of a prescribed treatment plan.

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But, if the massage is for relaxation or general well-being, it is not considered a qualified medical expense, and you cannot use HSA funds to cover it. Massages for stress relief or spa treatments, even if they improve your overall health, do not meet the criteria for HSA reimbursement. This is why you should keep detailed records for any massage therapy you claim as an HSA expense to demonstrate that it is supported by a medical diagnosis and prescription.

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If you are uncertain whether your specific situation qualifies, it is a good idea to consult with your HSA provider or review IRS guidelines on qualified medical expenses.

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HSA Qualified Expenses

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HSAs can offer broad coverage for a variety of medical expenses, provided that they are deemed necessary for the diagnosis, treatment or prevention of disease. Understanding what counts as a qualified medical expense can help you maximize your HSA benefits and avoid penalties for ineligible expenses. Here are five examples of qualified HSA expenses:

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While HSAs cover a wide range of healthcare needs, expenses such as cosmetic procedures, gym memberships or non-prescribed vitamins and supplements are generally not eligible.

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Bottom Line

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HSAs provide a tax-advantaged way to pay for medical expenses, but understanding which services qualify is key to using your account effectively. Massages may be covered if they are prescribed by a doctor to treat a medical condition, but massages for relaxation or general wellness do not qualify. If you are unsure whether a service is eligible, you may want to consult your HSA provider and keep thorough records of any treatments prescribed by a healthcare professional.

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Health Savings Tips

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Both overdraft and NSF fees can hurt the cash flow in your bank account, especially when it’s time to pay a bill. The respective fees could stop you from going to the store to get personal items. But while the two are often grouped together, they aren’t the same. Here is how you can get charged for each and what the differences are.

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Consider working with a financial advisor as you make personal finance decisions.

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What Are Overdraft Fees?

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Overdraft fees can occur when you try to transfer money out of your bank account and there isn’t enough money to cover the transaction. When an overdraft occurs, the bank covers the remainder of the transaction and may or may not charge an overdraft fee.

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Overdrafts can happen either manually, like when you use your debit card, or automatically, like with a monthly bill payment. Overdraft fees do vary by bank, but according to the FDIC, the cost may be approximately $35.

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How Overdraft Fees Work

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Each bank has its own overdraft policies. For example, some charge significant fees each time your account is overdrawn, while others waive these fees entirely. Typically, banks will protect customers against overdraft fees, up to a certain amount – but only if they have opted into overdraft protection.

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Even if you opt into overdraft protection, it doesn’t mean you won’t be charged for overdrafts. It simply means the bank will let transactions go through when you don’t have enough funds to cover a transaction. Whether the bank charges a fee for this service is for them to decide.

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What Are NSF Fees?

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Non-sufficient funds or NSF fees also occur when you don’t have enough money in your account to cover a transaction. However, with an NSF fee, the transaction won’t complete. This is what usually results in a situation where a check “bounces.” The average NSF fee is $34 in the U.S., according to the Consumer Financial Protection Bureau (CFPB).

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How NSF Fees Work

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NSF fees can occur if your bank offers overdraft protection, but you haven’t opted in. The bank won’t cover the rest of the transaction when this happens, resulting in an NSF fee. There are other situations where you might be charged an NSF fee, such as if you overdraw your account and you’ve already exceeded the bank’s overdraft protection limit.

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Comparison of Overdraft Fees and NSF Fees

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Overdraft fees and NSF fees are similar in many ways. The most notable difference between the two is whether the transaction goes through (overdraft) or not (NSF). The table below shows key distinctive features of each.

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How Overdraft Fees and NSF Fees Compare

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	Overdraft Fee	NSF Fee
Average Fee	$35	$34
Transaction goes through	Yes	No
Charged until account has sufficient funds	Yes	No
Can be avoided with overdraft protection	Yes	No

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How to Avoid Overdraft Fees and NSF Fees

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NSF fees and especially overdraft fees can add up quickly. However, there are a few steps you can take to avoid them:

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Bottom Line

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Both overdraft fees and NSF fees occur when you try to spend more money than you have. The biggest difference is that the transaction still goes through with an overdraft. With an NSF fee, the transaction is canceled. While banks often charge fees when this happens, some waive these fees in some situations and others have abandoned them completely. Still, regularly monitoring your finances, including your checking account balance, is good practice. You can also set up alerts to let you know when your balance falls below a certain threshold.

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Tips on Bank Accounts

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