The HSA Authority by Old National Bank stands apart as one of the most experienced Health Savings Account administrators. They were among the first to bring HSAs to the market in 2004. Chosen as HSA Trustee for the State of Indiana employees, today they provide customized HSA solutions for employer groups and individuals in all 50 states. Today, The HSA Authority services over 98,000 HSAs, with nearly $200 million in HSA assets and deposits.
for The HSA Authority as an investment vehicle
The ideal investment health savings account (HSA) has no investment threshold, allowing the very first dollar you contribute to be invested. If you're using an HSA for investment purposes, seek an administrator that does not hold your dollars hostage in a checking account earning little to no interest.
The HSA Authority is unique in that it requires a balance of at least $1,000 in the HSA checking account in order to gain access to the investment account, but once that balance is reached, you can transfer all your money into the investment account if you wish. You are not required to leave any money in the HSA checking account.
The HSA Authority offers its participants a pre-selected investment lineup. The HSA Authority investment lineup is composed of 32 mutual funds. Below you can see the number of offerings from each fund family.
The table below displays the number of funds offered for each asset class in The HSA Authority investment lineup.
There's no secret that we here at the The HSA Report Card are big proponents of passive index investing. Thus, we looked favorably upon administrators that offered low cost index funds for each of the major asset classes. In the table above, you can see that The HSA Authority offers low cost index funds for every major asset class. In fact, low-cost, broadly diversified index funds represent 40% of choices.
How expensive are the funds in The HSA Authority investment lineup?
Per the chart below, The HSA Authority offers some of the lowest cost funds of the 7 HSA administrators in our study that offer pre-selected investment lineups.
For The HSA Authority, the average expense ratio for each asset class is low due to the heavy emphasis on low-cost index funds. The HSA Authority has done a good job of constructing an investment lineup with low expense ratios across all the major asset classes.
Interest Bearing Account
The HSA Authority offers participants an FDIC-insured, interest bearing account. Interest bearing accounts make sense for participants who are uneasy about investing their HSA dollars in the equity markets.