What is Starship?
Starship is a modern health savings account (HSA) that makes saving for your health super easy, but without the pesky hidden fees. It’s got all the tools you need to save, spend, and invest for your health – including the Starship Visa Card®, our powerful iOS and Android apps, automated savings and investing, and customer support that really cares.
What is a health savings account (HSA)?
Health savings accounts (HSAs) are like personal savings accounts, except that the money in them is used to pay for eligible health expenses. They were created in 2003 to help individuals and families offset the growing costs of healthcare. At Starship, we like to consider HSAs the crown jewel of tax-deferred accounts. Contributions to an HSA are not taxed, funds in them grow tax-free, and distributions for eligible health expenses aren’t taxed either.
How is Starship different from other HSAs?
We believe that making smart health spending and saving choices should be affordable, easy, and even fun. That's why Starship removes all of those pesky, hidden fees that most HSAs charge. We're determined to help you maximize the growth of your funds through higher interest rates and automatic investing in low-cost, reputable funds.
What are the benefits of HSAs?
One of the greatest benefits of health savings accounts is their triple-tax advantage – contributions into your account are tax-deductible, the growth on investments is tax-free, and spending on eligible health expenses also aren't taxed. Health savings accounts can also act as emergency funds for unexpected health expenses, providing a safety net during tough moments. Additionally, the funds in your health savings account stay with you forever. Unlike a flexible spending account (FSA), unused money in your HSA isn’t forfeited at the end of the year.
Who can use Starship?
We believe that everyone should have access to the best financial wellness possible. That’s why we built Starship, for traditional employees and freelance workers alike. However, there are a few basic requirements to make contributions into a health savings account (HSA). To make HSA contributions, you must be a taxpayer in the United States, 18 years of age or older, enrolled in an HSA-eligible high-deductible health insurance plan (HDHP), without Medicade or Medicare benefits.
Do I need a specific health insurance plan?
It’s required to have an HSA-eligible high-deductible health plan (HDHP) in order to add new contributions to your health savings account (HSA). The IRS defines eligible plans as follows: 1) Minimum Deductible: $1,400 Single, $2,800 Family 2) Out-of Pocket Limit: $6,900 Single, $13,800 Family. We understand this can be a bit confusing. If you aren’t sure that your plan is HSA-eligible, we recommend giving your provider a call!
Does Starship charge fees?
You shouldn’t pay to use your own money, which is why Starship’s Spending Account is totally free – no minimum balance, no monthly fees, no extra card fee. Here's the one thing: when you invest, we do charge a small fee. We're as transparent as possible about it: you pay 0.5% on the funds in your Starship Investing Account. You also pay the small fee that's built into the low-fee ETFs we purchase for you — about 0.2%. This way, we only win when you do.