Recommend an HSA Custodian

[TromboneAl]

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.

 

[TromboneAl]

Wow, does no one here have an HSA?

 

[MooreBonds]

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 (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

 

[TromboneAl]

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.

 

[TromboneAl]

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.

 

[TromboneAl]

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