Recommend an HSA Custodian

I'm about to choose an HSA bank, and want to find one that others are happy with. This list comes from a search on HSA Insider, in which investment options was the top priority, followed by low fees.

Wow, does no one here have an HSA?

[MooreBonds]

Quote:

Originally Posted by TromboneAl Wow, does no one here have an HSA?

Don't forget TA - some of us have to slave away work during the day and can't check the board every 30 mins for new posts :P (of course, that doesn't prevent me from checking in every now and then during work....)

Back in Jan 2005, I picked HSABank as the best at the time. However, the others may have modified their policies/rates/options since then...

[MileKing]

I looked at HSA Bank and the fees are ridiculous. $18 to enroll on-line, $3 to renew your debit card after two years, $12.75 for initial set of 50 checks, $2.25 per month fee (if balance under $3000), $25 to close account....the list goes on. There must be better options than this.

[MileKing]

A few options I am considering based on combination of fees, interest rate, and no account closing fee:

First American Bank
The Bancorp Bank
U.S. Bank - waiving monthly maintenance fee for life of account if HSA opened by 2/28/06

Yes, so far my research is uncovering a lot of hidden fees and/or high expense ratios.

For example, if you put $4,000 in a Vanguard mutual fund through HSA Bank, that does not count towards the $3,000 minimum, since it isn't in their own "interest" account.

I'll post my results when my research is done. Keep us posted, Mile High King.

Quote:

A few options I am considering based on combination of fees, interest rate, and no account closing fee: First American Bank The Bancorp Bank U.S. Bank - waiving monthly maintenance fee for life of account if HSA opened by 2/28/06

My initial look at those shows interest rates of around 2%, which rules them out for me.

Concerning those HSA Bank fees, I see no reason to get a debit card. Just get your 50 checks for $12.75, and use one per year to reimburse yourself for medical expenses.

So, with the following hypothetical case: $4,000 into a Vanguard mutual fund on Jan 2, 2006, another $4,000 on Jan 2, 2007:

First Year fees:
Enrollment: $18
Brokerage transaction fee: $20
Monthly Account Fee: $2.25 * 12
Monthly Brokerage Fee: $2.00 * 12
Checks: $12.75

Total First Year: $101.75

Second Year fees:
Brokerage transaction fee: $20
Monthly Account Fee: $2.25 * 12
Monthly Brokerage Fee: $2.00 * 12

Total Second Year: $71