The HSA Report Card

The HSA Authority

The HSA Authority

 

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.

 
 

Report Card

for The HSA Authority as an investment vehicle

 
 
 

 

Investment Threshold

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.

 
 
 
 

 

Investment Account

The HSA Authority offers its participants a pre-selected investment lineup. The HSA Authority partnered with Devenir to construct a lineup composed of 32 mutual funds. Below you can see the number of offerings from each fund family.

 
 

The HSA Authority Investment Lineup

The table below displays the number of funds offered for each asset class in The HSA Authority investment lineup.

 
 
Asset Class # of Funds Offered Index Fund Available?
Domestic Large Cap 9 Yes
Domestic Mid Cap 2 Yes
Domestic Small Cap 2 Yes
Foreign Developed Markets Equity 4 Yes
Emerging Markets Equity 1 Yes
Short & Intermeidate Term Fixed Income 7 Yes
Target Date/Allocation 5 Yes
Specialty/Other 1 -
 
 

The HSA Authority has done a great job of constructing a well-rounded investment lineup. Every major asset class is represented. Low cost index funds are available for every major asset class. 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 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.


 
 

Fees

 
Type of Fee Details
Account Transfers Free ACH/EFT
Investment $36 per year
Paper Statements $2 per month (no fee for electronic statements)
Closing Fee $25
 
 

In our study of the top 10 investment HSAs, The HSA Authority ranks as one of the lowest cost administrators. The HSA Authority charges its participants a $36 investment fee. That's it! One fee! 

The HSA Authority Fee Schedule

 
 

 

Projected Fees

In this section, we have a little fun projecting fees for each administrator. Our goal was to find the path to the lowest possible fees for each administrator. Keep in mind, we are assuming the HSA is being used solely for investment purposes, therefore only certain fees will apply. Given that every HSA is different, there is no perfect way to compare the top 10 administrators in our study. Nonetheless, we gave it a shot and believe there is value in presenting our findings.

In order to compare fees, we made a few simple assumptions:

  • Every dollar above the investment threshold was invested.  
  • Current and future contributions were invested in a single fund.
    • Total Stock Market Index (VTI / VTSAX / SPTM) or S&P 500 index (IVV VIIIX / VFIAX). We believe these two index funds are one in the same.
  • No transaction fee (NTF) or commission-free ETF programs were utilized to buy the index funds.
  • If these index funds were not available under the NTF and/or commission-free ETF programs, we turned to the open market and executed a single trade per calendar year in order to keep transaction costs down. 

For The HSA Authority we made the following assumptions:

  • Every dollar was invested in VTSAX (expense ratio 0.05%).
  • Annual Investment Fee: $36.

The chart below summarizes the projected fees on different investment balances for The HSA Authority.

 
 
 
 

The following chart illustrates where The HSA Authority stands in terms of fees compared to the other top 10 investment HSA administrators.  

 
 
 
 

The HSA Authority ranks as the 4th lowest cost provider among the top 10 HSA administrators.

 
 

 
 

Features

 

In our search for the very best investment HSAs, we looked for administrators that offered a hassle-free investment experience.  The HSA Authority does not give investors all the necessary tools to easily manage their account. Our main gripe is that automated account transfers to the investment account are NOT available. Furthermore, The HSA Authority does not have a receipt storage tool. 

The-hsa-authority.png
 
 
Feature Available?
Auto-Deposit
Investment Sweep
Automatic Rebalancing
Dividend Reinvestment
Receipt Storage Tool
Intuitive Website

Auto-Deposit

With The HSA Authority you can set up scheduled recurring deposits from your bank checking account to the HSA checking account.

Investment Sweep

Transfers from the HSA account to the investment account must be initiated with a call to an HSA representative.

Automatic Rebalancing

The HSA Authority does not have an auto-rebalance feature. Investments must be manually rebalanced.

Dividend Reinvestment

Dividends are automatically reinvested by each mutual fund.

Receipt Storage Tool

Unfortunately, The HSA Authority does not provide "shoeboxers" with a receipt storage tool.

Intuitive Website

Participants have reported the main website and investment platform easy to navigate.

 
 

 
 
 
Pros
  • One low fee
  • Transparent fee disclosures
  • Low-cost, well constructed, globally diversified investment lineup
Cons
  • You have to pick up the phone to transfer money to the investment account
  • Investment minimum of $1,000 is required to start investing
 
 

 

The HSA Authority HSA may suit you if:

  • You are satisfied with the investment options in the pre-selected lineup
  • You are planning on making multiple transactions per calendar year
  • You don't require an online receipt storage tool
  • You don't mind picking up the phone to transfer money to the investment account
  • You are also planning on spending some of those HSA dollars. The HSA Authority is on our short list of the best HSAs for spenders.

 
 

 

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