This unique checking account grants you a tax advantage to offset medical expenses. Funds contributed to the account are not subject to income tax and may be used to pay for qualified health care at any time without tax liability. If you withdraw money for non-medical expenses, the funds are treated like an IRA account. HSA is the smart way to invest in your wellness.

Download HSA Application

Download HSA Rollover Form

Transfer funds into/from your HSA account*

*There is no fee for moving funds into a Sutton Bank account and a $0.50 charge for moving funds from Sutton Bank into another financial institution.

• Invest funds with OptionsXpress*
• Free HSA Visa Check Card
• Billpay service available

Rate Tiers

• $0-$499.99
• $500-$1,999.99
• $2,000-$4,999.99
• $5,000-$14,999.99
• $15,000 and over

* Sutton Bank has partnered with the leading online brokerage service OptionsXpress. OptionsXpress offers custom trade tools for experienced and novice investors.

Please read the OptionsExpress addendum found on the OptionsXpress tab BEFORE setting up your OptionsXpress account! There you will find the co-branded link necessary to open an account (bottom of addendum).

**see application for other fees associated with this account

Terms and Conditions for HSA Brokerage Account

through Sutton Bank.

Notification of Fee Changes and Policy Changes as of 1/1/2011 for all current and new Sutton Bank HSA account holders.

This addendum amends OptionsXpress' Standard Account Terms and Conditions to provide for a brokerage account that is integrated with your Health Savings Account at Sutton Bank. In consideration for us to maintain an account for you, you hereby agree that you have read, understand and agree to the following terms and conditions and that you understand that you are subject to both the OptionsXpress Standard Terms and Conditions of this Addendum.

How the HSA Investment Account will work.

1. You agree and understand that Sutton Bank will serve as legal custodian for your brokerage account within your HSA. You further agree to the following terms:

a. Contributions:

You agree to make all contributions to your HSA directly into your Sutton Bank HSA account. You understand and acknowledge that you cannot make contributions directly into your brokerage account (OptionsXpress).

b. Distributions:

You agree to take all distributions from your HSA through your Sutton Bank HSA account. You agree and acknowledge that you cannot take distributions directly from your brokerage account. You agree and acknowledge that this limitation includes that you cannot access assets in your brokerage account via checking or debit card; you must first transfer the funds to your Sutton Bank HSA account. This further requires that you must first liquidate your assets from your brokerage account and then transfer the money into your Sutton Bank HSA account prior to transferring your HSA assets to a new HSA custodian or trustee.

c. Moving money:

You agree that the only method of moving money into and out of your brokerage account is through ACH transfer between your brokerage account and your Sutton Bank HSA account as provided for on both OptionsXpress' and Sutton Bank's web sites. You agree that you are only allowed to move dollars between the accounts and that you are not permitted to transfer securities in-kind.

d. Online Access:

You agree and understand that you will have separate online access to your brokerage account and that it will not be aggregated with your online access to your Sutton Bank HSA account. You acknowledge that your only method of executing trades is through your access to your OptionsXpress online brokerage account. The balances will be kept separate for most purposes, with one exception being an annual fair market value report that Sutton Bank will provide to you early in the year, showing your combined balance on December 31 of each year. To the extent other statements are provided, you may receive separate statements for your brokerage account and your Sutton Bank HSA account and the statements will reflect your balance in the respective accounts, not the aggregate balances.

e. Custodial Nature of Account:

You understand that the assets held in your brokerage account will be titled and held in the name of the custodian for your benefit; for example "Sutton Bank as custodian for customer name." You further understand that HSA's are required to have a custodian; however, the custodians role is limited to administrative recordkeeping as required by the IRS due to the tax favored nature of an HSA account. The custodian does not provide any fiduciary services or investment advice.

2. Trading Limitations for this Brokerage Account:

In addition to other applicable limitations pursuant to law, and the OptionsXpress Standard Terms and Conditions or your HSA custodial agreement, you agree that this brokerage account is subject to the following limitations:

a. Margin Accounts:

You are not permitted to use a margin account for your HSA.

b. Short Sales:

You are not permitted to engage in uncovered short sales for your HSA.

c. Options:

While it is permissible to transact options in an HSA, you must be aware of the unique qualities of an HSA. Regulations prohibit margin transactions in an HSA. Therefore, holders of long options in an HSA account must have a cash balance equal to or greater than the requirement to exercise the options in the brokerage account on the last day prior to expiration or we may close out the position in the open market on a "best" efforts basis prior to the market close.

d. Pledging of your HSA:

You are not permitted to pledge your HSA as security for a loan.

e. No Joint Accounts:

HSA's are individual accounts and are not allowed to be held as a joint account.

3. Miscellaneous:

a. Communication:

With respect to your brokerage account, you agree to direct your communication and questions to OptionsXpress.

b. Headers:

The titles, headings, or captions in the paragraphs or sections of this addendum are inserted for your convenience or reference only and shall not constitute a part of the addendum.

c. Addendum Supersedes Standard Terms:

This addendum modifies your OptionsXpress Standard Terms and Conditions. You are subject to both this addendum and the OptionsXpress Standard Terms and Conditions. To the extent any inconsistencies between the agreements exist, this addendum shall control.

4. Fee and Charges:

a. Sutton Bank will charge an annual fee of $36.00 for an HSA brokerage account which will be withdrawn from your Sutton Bank HSA on the last business day of February each year beginning in February 2011. If you do not have the appropriate balance in your account at the time of deduction, you will be invoiced for the amount of the fee monthly until it is paid, or your HSA account with Sutton Bank will be closed and you will be required to liquidate your account or open a different type of account with OptionsXpress. (Contact OptionsXpress for assistance).

b. Sutton Bank requires you to keep a $1,500 balance in your HSA to avoid a

$1.50 minimum balance fee. (As described in Sutton Bank's Fee schedule.

Minimum balance fee has been in effect since 1/1/2009).

c. Sutton Bank will charge a $1.50 paper statement fee you to receive a paper monthly statement as opposed to a free, electronic monthly statement (As described in

Sutton Banks Fee Schedule. (Paper statement fee has been in effect since 1/1/2009)

5. Non-deposit investment products offered through OptionsXpress holding are:

a. Not a deposit or other obligation of, or guaranteed by Sutton Bank;

b. Not insured by the Federal Deposit Insurance Corporation.

c. Subject to investment risk, including the possible loss of value.

Please refer to the complete Schedule of Fees and Terms and Conditions regarding our Health Savings Accounts on the HSA Account Application located under the Summary tab.

Sutton Bank HSA customers must use this co-branded link to open an account with OptionsXpress:

https://www.optionsxpress.com/new_account.asp?HSA_APP=TRUE&ASID=74&BRANCHID=344

• Must be covered by a health plan with a minimum deductible of $1,200 for individuals or $2,400 for families
• Annual out-of-pocket expenses (including deductible and co-pays) cannot exceed $5,950 for individuals or $11,900 for families
• Cannot be covered by other health insurance
• Cannot be enrolled in Medicare
• Cannot be claimed as a dependent on someone else's tax return