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Reasonable HSA fee? cheaper options?
Old 03-17-2015, 11:40 AM   #1
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Reasonable HSA fee? cheaper options?

Since we will be retiring this month, HR informed us that we are now responsible for our HSA fee ($3.95 per month at UMB bank).

We have about 20k there, treating it like a Roth (pay all our medical out of pocket).

So that is about 0.25% per year fee. Reasonable or is it possible to get cheaper?
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Old 03-17-2015, 11:46 AM   #2
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It also depends on what the HSA is invested in... if it is in a bank account then after the 0.25% of fees it is probably not earning that much.

We transferred ours to HSA Administrators. We pay more in fees ($45 annual fee plus some others) but can invest in low cost Vanguard funds (ours is in Total Stock) so even though we pay high fees I think we will be better off in the long run than paying low fees but earning much less or being limited to investing in high-cost funds.
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Old 03-17-2015, 11:47 AM   #3
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Our fee for HSA Adminstrators is $45/yr plus .08% quarterly on investments so your fee sounds reasonable.
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Old 03-17-2015, 11:58 AM   #4
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HSA accounts recent thread on HSA account options. It is possible to do it cheaper but yours isn't bad, depending on whether you have good investment choices.
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Old 03-17-2015, 01:10 PM   #5
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I use HSA Administrators, but am very frustrated by their web site. It is SLOW and so very unintuitive.
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Old 03-17-2015, 01:47 PM   #6
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I haven't done it yet, but I intend to open one with this credit union, which is available to anyone. I haven't found a catch or fee yet... Look halfway down the page for HSA rates...

https://www.connexuscu.org/rates/deposit-accounts
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Old 03-17-2015, 02:23 PM   #7
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Originally Posted by walkinwood View Post
I use HSA Administrators, but am very frustrated by their web site. It is SLOW and so very unintuitive.
+1 Luckily, our HSA money just sits there in Vanguard funds (we no longer can do contributions) and grows so the only thing I have to do is log on periodically and get the periodic dividends and redemptions for the .08% fee. If I was actually using the HSA funds then I would move it elsewhere that had better online capabilities.
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Old 03-17-2015, 06:04 PM   #8
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Try HSA Bank. No fee if you maintain a minimum in the bank account, access to TD Ameritrade for investments (with a monthly fee). I don't invest but hold the funds to pay expenses.

Add up all the possible expenses, I don't think it will come to $45 per year. Currently paying .40% on savings.

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Old 03-18-2015, 10:00 AM   #9
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My HSA is at Fidelity. They waive the $48/yr fee for households with $250K in assets at Fidelity. So, I've never paid a fee beyond the ER of whatever ETF I own. It's a brokerage account, so I can own anything I want, although there is the usual $7.95 commission to trade non-Fidelity ETFs. I currently hold an iShares equity ETF, with no commission. It's also very convenient for contributions and distributions, which are just an online transfer to/from our Fidelity cash management account.
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Old 03-18-2015, 10:06 AM   #10
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Quote:
Originally Posted by Cobra9777 View Post
My HSA is at Fidelity. They waive the $48/yr fee for households with $250K in assets at Fidelity. So, I've never paid a fee beyond the ER of whatever ETF I own. It's a brokerage account, so I can own anything I want, although there is the usual $7.95 commission to trade non-Fidelity ETFs. I currently hold an iShares equity ETF, with no commission. It's also very convenient for contributions and distributions, which are just an online transfer to/from our Fidelity cash management account.
Fidelity HSAs are still not available to individuals AFAIK. You must have gotten yours through your company health insurance plan.
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Old 03-18-2015, 10:09 AM   #11
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Fidelity HSAs are still not available to individuals AFAIK. You must have gotten yours through your company health insurance plan.
You are correct. I just kept it from my Megacorp days. I didn't know they were unavailable to everyone.
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Old 03-18-2015, 10:09 AM   #12
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if you have a large enough amount, and it looks like you do, you can probably roll it over somewhere that waives annual or monthly fees once minimums are met.
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Old 06-11-2015, 02:30 AM   #13
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You are correct. I just kept it from my Megacorp days. I didn't know they were unavailable to everyone.
Not sure. Didn't have one while working. Called Fidelity as a MegaCorp retiree but they said I had to fill out an individual request because I was no longer an employee. Set one up for me, and spouse was also able to establish a Fidelity HSA by making an individual application (and never having worked for MegaCorp).
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Old 06-11-2015, 02:59 AM   #14
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+1 Luckily, our HSA money just sits there in Vanguard funds (we no longer can do contributions) and grows so the only thing I have to do is log on periodically and get the periodic dividends and redemptions for the .08% fee. If I was actually using the HSA funds then I would move it elsewhere that had better online capabilities.
How do you get redemptions from HSA Administrators?
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Old 06-11-2015, 05:48 AM   #15
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Try HSA Bank. No fee if you maintain a minimum in the bank account, access to TD Ameritrade for investments (with a monthly fee). I don't invest but hold the funds to pay expenses.

Add up all the possible expenses, I don't think it will come to $45 per year. Currently paying .40% on savings. Rita
The HSA Bank interest rate depends on your balance in the bank account, currently .40% for the OP's $20k. If you link the account to TD Ameritrade, there is no monthly fee if you keep $5k at HSA Bank earning .20%, otherwise a total of $5.50 in monthly fees ($2.50 monthly account maintenance and $3.00 investment fee).

HSA Bank Rates and Fees
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Old 06-11-2015, 07:52 AM   #16
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I use HSA Administrators, but am very frustrated by their web site. It is SLOW and so very unintuitive.
+1. What? You don't like their "new and improved" website?
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Old 06-11-2015, 08:39 AM   #17
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How do you get redemptions from HSA Administrators?
I used to get my distributions (I reimburse myself each year, instead of letting the account grow) for qualified expenses the old fashioned way but sending in a form, US mail, each year.

But now, I've used their "Automatic Contribution & Distribution Authorization" form to give the bank info where you want the distributions deposited to. Then each year, I just specify (online at their site) the amount, and the distribution automatically gets placed in my account.

When you log on, go to their "Forms" tab to see the "Automatic Contribution & Distribution Authorization" form.
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Old 06-11-2015, 10:15 AM   #18
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Besides the $45 fee it sounded like there was some .08 maintenance fee?

And pb4 seemed to be referring to a way to get redemptions on that fee?


As for distributions, can you have them automatically reinvest to additional shares?
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Old 06-11-2015, 10:19 AM   #19
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I went with "Elements Financial". It's free if you just want an interest bearing account, and a small fee for if you want a trading account. I only had one year's worth of HSA contributions, so didn't bother to get a trading account. Now that I have two years' worth, that's on the agenda.

I learned about it in this post. It used to be called "elfcu", but it's just a name change. Customer service has been great.
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Old 06-14-2015, 10:11 AM   #20
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Our HSA is with Optum Bank for over 5 years now. No fees with minimum cash balance. Remainder can be invested in a nice selection of mutual funds, including several low-cost Vanguard index funds. Very user friendly.
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