American Chartered Bank in Schaumberg, Ill., has sold its health savings account business to Minnesota insurance company SelectAccount.
The deal included more than 52,000 HSAs with total deposits of about $120 million, SelectAccount said in a Friday press release. Consumers are able to make pretax contributions to an HSA account for health care expenses. Unspent funds in the accounts also earn tax-free interest.
The portfolio of the $2.3 billion-asset American Chartered Bank was a mix of individual account holders and businesses that offered the accounts to employees. SelectAccount said it will directly manage the individual HSAs and will support employers by offering tools that allow employees to manage their accounts.
SelectAccount, an affiliated business of Blue Cross and Blue Shield of Minnesota, now has roughly $400 million of assets in consumer medical savings accounts. Neither company said how much SelectAccount paid for the business.