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Vanguard HSA
Old 10-12-2007, 03:40 PM   #1
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Vanguard HSA

I noticed that Vanguard has some HSA links on their site. They recommend two custodians: HSA Administrators and Exante Bank.

I looked at Exante's fee schedule, and there are no fees (other than a $10 signup fee) if your balance > $5000.

This sounded too good to be true, so I called them to verify. They verified the fee schedule, but indicated that I needed to sign up via the Vanguard link to ensure that I was affiliated with Vanguard (I assume Vanguard gives them a kickback).

So, I plan to transfer my HSA account over to Exante. Anybody have any experience with them?
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Old 10-12-2007, 05:24 PM   #2
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Please keep me posted as to how it goes.
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Old 10-12-2007, 05:35 PM   #3
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It looks like you have to keep $2,000 in a checking account and the rest can be invested. I do wish they had more fund choices.

Oliver

PS Actually, I am unsure what investment choices are available. The web site indicates "Your actual investment options may vary depending on your specific HSA plan." The ones listed below are the standard choices. Exante Bank - Health Savings Account


John Hancock Classic Value PZFVX
Vanguard Wellington VWELX
Neuberger Berman Fasciano NBFSX
Vanguard Global Equity VHGEX
Vanguard S&P 500 Index VFINX
John Hancock High Yield A JHHBX
PIMCO Real Return Fund PRTNX
John Hancock Money Market JHMXX
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Old 10-12-2007, 05:39 PM   #4
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There's a different fund list when you're affiliated with Vanguard:

https://enroll.exantebankhsa.com/van...dINVEST_v3.pdf
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Old 10-12-2007, 08:03 PM   #5
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Originally Posted by twaddle View Post
There's a different fund list when you're affiliated with Vanguard:

https://enroll.exantebankhsa.com/van...dINVEST_v3.pdf
Thanks for the info. Do you have any links to the fees and the interest rate earned on the $2,000?

Oliver

PS View Reviews and Ratings for Exante Bank at Vimo - Comparison Shopping for Health
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Old 10-13-2007, 05:39 PM   #6
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Originally Posted by Oliver View Post
It looks like you have to keep $2,000 in a checking account and the rest can be invested.
There's no free lunch, and this is probably why the visible fees are so low. The "hidden fees" (in the form of being required to lend them at least $2K at pathetic interest rates) would amount to $20 per year for every 1% of yield you have to sacrifice.
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Old 10-13-2007, 07:48 PM   #7
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Quote:
Originally Posted by twaddle View Post
I noticed that Vanguard has some HSA links on their site. They recommend two custodians: HSA Administrators and Exante Bank.

I looked at Exante's fee schedule, and there are no fees (other than a $10 signup fee) if your balance > $5000.

This sounded too good to be true, so I called them to verify. They verified the fee schedule, but indicated that I needed to sign up via the Vanguard link to ensure that I was affiliated with Vanguard (I assume Vanguard gives them a kickback).

So, I plan to transfer my HSA account over to Exante. Anybody have any experience with them?
I won't have 5K until next year, but I was planing on switch to them as
well, unless I hear something bad about them.
TJ
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Old 10-15-2007, 02:18 PM   #8
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Thanks for the info. Do you have any links to the fees and the interest rate earned on the $2,000?
Just got off the phone with them. They don't publish the rates on their web site, apparently because the rates vary according to the terms of their affiliate relationships.

For Vanguard affiliates, the checking account is interest bearing, and the rates are tiered.

The lowest tier (e.g., the $2000 in "dead" cash) would yield 2.75% (2.78% APY).

The highest tier (> $15,000) yields 4.3% (4.39% APY).

These rates fluctate based on market rates, but the rep I spoke to indicated that they haven't changed very frequently.

So, it looks like you'll basically give up 2%/year on a minimum cash deposit of $2000, or a "hidden" fee of $40/year.

Still seems better to me than HSA Administrators who charge $39/year + .36% of assets.
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