Wells Fargo & Co. said Wednesday its customers signed up for more than 100,000 new health savings accounts last year, a 38 percent growth.
The banking giant also reported a 22 percent increase in assets under the HSA program, offered through its health benefit services group.
Overall, more than 320,000 individuals and 10,000 companies nationwide use its HSAs.
In 2011, Wells Fargo business clients with HSA programs contributed more than 27 percent of total HSA contributions to their employees’ accounts, “helping those businesses save an estimated $10 million in payroll taxes,” Wells Fargo said in its announcement.
“We continue to see an increase in adoption as more of our customers take advantage of the long-term tax and retirement benefits of HSAs,” said Elizabeth Ryan, head of the company’s health benefit services. “Wells Fargo is committed to educating our customers—including corporate, small business and individual clients—on how HSAs can help people prepare for retirement and make smarter health care-spending decisions.”
As the average account balance increased by 10 percent to more than $2,500 (for accounts with a balance), account holders also saved an estimated $90 million in taxes last year. With more account holders taking advantage of the opportunity to invest in mutual funds through their Wells Fargo HSAs, total investment balances increased by 27 percent since last year.