Spouse HSA-Small Account - Looking for Low Fees

[Z3Dreamer]

DW fully funds her HSA through payroll deductions, which eliminates SS and Medicare as well as income taxes. I am eligible to set up an HSA and deposit up to $1,000 per year and never (almost never) use it. When it gets to $5,000 I will move it to some institution where I can invest, but that will be in 2018 or so. This would save me a few hundred a year in tax. Problem is that the big banks charge a monthly fee until I get up to some amount. I have even looked to see if my primary banks waive HSA fees if I have enough other business with them. No. Google finds a few small and specialty banks/financial institutions that have no fees. My initial deposit would be $2,000 in early 2015 for 2014 and 2015. Any specific recommendations on no fee, easy to use HSA accounts? Or is this too small an amount to set up?

 

[Mulligan]

This site should be helpful to you as it will tell you state and national options. I think I have it teed up for you in the health savings account section.

https://www.depositaccounts.com/savings/health-savings-accounts.html


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[Cat-tirement]

My initial deposit would be $2,000 in early 2015 for 2014 and 2015. Any specific recommendations on no fee, easy to use HSA accounts? Or is this too small an amount to set up?

Earlier this year I opened a new HSA that might fit what you desire. I too wasn't going to have a large enough amount to really use it for investment purposes. If you're on the east coast, you might look into TD Bank. They have a one time $20 setup fee, but no ongoing fee, and it pays a token amount of interest. If you want to actually use it to pay expenses, it also includes a free Visa/debit card and checks. (Some charge extra for this.)

 

[Sue J]

Last year I was considering my first HSA. I found a local credit union that had a no fee account, low minimum balance and and HSA debit card. The credit union had no investing options for HSA accounts.

Instead, I ended up looking for an HSA administrator that offered investment options. We found Health Savings Account - HSA Administrators which has a debit card option and also investing in 22 Vanguard funds. There is a $45/yr fee and a small quarterly fee on investments. I started with Vanguard Total Stock Market then Wellington and now also have some in Windsor II. This has worked out well for us.

If you are not looking to invest the HSA money look into credit unions.

 

[Animorph]

I use Saturna Capitol and invest in their Amana Growth Fund (AMAGX). No fees at all. No debit card or anything either, they are more interested in long-term investing. $100 minimum investment. But, the ER's on the funds are a little over 1%. For small amounts that's probably a good deal. For larger amounts, you may do better paying a fee and getting lower ER's. In my case, AMAGX was a fund that I already had in my portfolio, so I was able to sell some in my taxable account and buy it back in my HSA.

 

[Z3Dreamer]

Thanks, Mulligan, Cat, Sue and Animorph.