Criteria for Evaluating HSA Plans
AS A SAVING VEHICLE
When evaluating HSAs as a saving vehicle, we primarily focused on maintenance fees and to a lesser extent on interest rates. In this low-interest rate environment, interest earned on HSA deposits is rather small and can even be negative if fees are excessive.
A lot of the health savings accounts with competitive interest rates are run by local credit unions that have eligibility requirements, such as living in a particular state/region. Sometimes these requirements are waived with a small contribution to a local charity and sometimes not. We will present you with a few administrators that offer nationwide participation via eligibility workarounds. We will also present you with regional administrators that offer a combination of competitive interest rates and low fees. If you know of an administrator in your area that fits this profile, feel free to let us know.
If you are planning on spending or investing any HSA dollars, these HSA providers are not for you. These HSA providers should only be used to safely earn interest on HSA dollars. Once you graduate to a spender or investor, take advantage of your HSAs portability and roll it over to an HSA administrator that meets your specific needs.
Recently Fidelity made a grand entrance into the individual/family HSA space with their completely fee-free offering. This is great news for savers. Savers can now buy brokered CDs for free with a Fidelity brokerage account! Brokered CDs are bought in lots of $1,000. There are other characteristics unique to brokered CDs. We strongly encourage you do your own due diligence on brokered CDs.