Monies in Health Savings Accounts Almost Double In First Months Of 2006:
Banks Report Robust Increases In Number Of Accounts, Deposits

(PRWEB) May 8, 2006 -- Many institutions said they reached very lofty
first quarter marketing goals for HSA custodial accounts while reporting
tremendous growth in account deposits in an exclusive survey by
Information Strategies Inc. (ISI)

The survey indicates that total HSA custodial deposits reached almost
$2.1 billion dollars by March 31st. This represented a jump from the
$1.1 billion dollars in HSA accounts as of the end of 2005.

Deposits from reporting banks averaged $1,407 per account as depositors
made significant contributions in the days leading up to the April 15th
tax filing date. The average of reporting banks at the end of 2005 was
$1,102 per account.

With more than 100 banks surveyed, ISI estimates that the total HSA
accounts at the end of the quarter were 1.5 million covering an
estimated 3.3 million Americans. This represents a jump of 400,000
accounts from year-end 2005 estimates.

According to JoAnn M. Laing, ISI's President, the results are in line
with the company's projections for HSA insurance and account custodian
estimates made after the December survey.

"We are seeing a tremendous growth in this sector as HSAs reach the next
plateau as a viable Consumer Directed Healthcare (CDH) option," she
added.

Among the other findings from the survey, according to Laing and her
staff, is the fact that a significant majority of responding banks are
seeing an increase in both the number of accounts and the number of
dollars in those accounts.

Survey respondents also said they were seeing significant shifts in
depositors from one banking institution to another. This finding echoed
results from ISI's user survey results. In that study completed in
March, many of the 2,000-plus respondents cited interest rates and
customer service as key factors in their overall perception of
custodians.

Specific banks that clients switching accounts helped to power the
reported growth include American Chartered Bank, Great Western Bank and
Home Federal.

Among the growth leaders is Tower Bank and Trust. "At the end of 2005,
it had more than 650 accounts and $600,000 in deposits. At the end of
March 2006, the Fort Wayne, IN, bank, had in excess of 2,600 accounts
with more than $2 million in deposits." The trend towards reduced
administrative/transaction fees as well as offering investment options
were also reported during the survey process. No bank in the survey
reported raising administrative/transaction fees.

Among the banks reporting their marketing strategies was Blackhawk Bank.
The Beloit, WI, bank touted its approach to HSAs. "We treated HSAs as a
personal product and treat our depositors as such," said Paula Hartzel,
a bank spokesperson.

ISI also noticed that in comparing the account numbers to the 2005
end-of-year-study, which asked for estimates, most of the banks are
meeting their expectations. Though they gave big estimates in the
previous study, many appear to be meeting these estimates. In many
cases, banks have reported doubling their number of accounts or more.
Information Strategies, Inc. (www.is-incorp.com) is a media and
marketing company serving the health care and business market sectors.
Its website, www.hsafinder.com is the largest independent website in the
HSA sector serving more than 185,000 subscribers with its award-winning
newsletter, Healthcare & You.

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Press Contact: Donald Mazzella
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Website: www.hsafinder.com