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A quick guide to HOA reserve accounts

  • Tag for article:Community Association Banking Articles

Ever wondered about the benefits of an HOA reserve account or how reserve accounts work? It’s helpful to think of it as a savings account for your community association.

Here’s how a reserve account works and how to avoid underfunded accounts.

Keeping your funds secure

It’s essential to keep your reserve funds safe. Since many community associations have reserve funds over the FDIC insurance $250,000 limit for an individual account, HOA reserve products can help protect every dollar of those funds.

The reserve study

The reserve study is your starting point: It’s a complete list of all the components and assets for an association. It helps the association’s board understand how long these components will last and how much future projects are going to cost.

With a reserve study, an association can outline how money should be saved or spent, taking into account future costs such as new roofing, paint or siding. Knowing these costs your community association can proactively understand how to budget.

Transparency and accountability

You’ll want your board to oversee the funds management, guide spending and saving, set financial goals and make sure the association meets those goals to ensure transparency and accountability for the funds.

Reserve funds should be reviewed regularly during board meetings and meetings with your financial provider.

It all comes together in the name of transparency, so everyone is clear on how the money is being managed and your HOA is positioned to meet your future goals.

As an industry leader, we understand the unique needs of community associations. We listen to our clients and utilize our expertise to help you protect and grow your funds so you can focus on your community. Learn more about our deposit solutions at


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