Criteria for Evaluating HSA Plans
as a Savings Vehicle
In selecting the best high yielding HSA’s we took five factors into account;
Safety
The account must offer FDIC insurance to provide safety and peace of mind.
Liquidity
Funds in the account must be readily available for processing cash transactions.
Fees
In this low-interest rate environment, net interest earned on HSA deposits is rather small and can even be negative when fees are excessive. Therefore, only administrators with fee-free or extremely low fees made the cut.
Competitive Yield
We believe HSA holders monies should at least keep up with inflation and this can only be accomplished by either investing or holding their cash in high yielding accounts.
Eligibility Requirements
We only include benefit administrators, banks and credit unions that make it possible for anyone in the United States to join.
Below we present you with profiles of 4 administrators we like for those seeking the best rates on their HSA cash accounts.
Another option for HSA savers is to go with an administrator that is fee-free and offers access to brokered CDs. Fidelity and Lively now offer individuals and families free access to brokerage accounts. This is great news for savers. Savers can now buy brokered CDs for free! Note: Brokered CDs have their own unique rules and characteristics. Perform your own due diligence to see if they make sense for you.
Eligibility Requirements:
Fees & Minimum Balances:
$500 Minimum Balance
$0 Set Up Fees (A $25 fee will be imposed when an HSA owner requests a direct transfer of funds to another financial institution or investment company from an HSA checking account or certificate at maturity)
$0 Monthly Maintenance Fees
$20 Domestic Outgoing Transfers
$0 Closing Fee (Checking accounts with a $0 balance and no activity for a year or longer may be subject to account closure by the credit union)
Locations:
8 locations throughout Indiana and Kentucky. ETFCU has branches in Evansville, IN (2), Newburg, IN, Mt Vernon, IN, Hamilton,Vincennes, IN, Princeton, IN, and Owensboro, KY.
Interest Rates:
HSA - Certificate
1 Year Fixed 1.55% APY
2 Years Fixed 1.85% APY
3 Years Fixed 1.95% APY
4 Years Fixed 2.15% APY
5 Years Fixed 2.30% APY
*minimum balance to open is $1,000
For more information visit the the ETFCU website here.
Eligibility Requirements:
Resident of certain communities in MI & FL OR
Member of ALS Association (one time $5 donation)
Fees & Minimum Balances:
$0 Minimum Balance
$0 Set Up Fees
$0 Monthly Maintenance Fees
Locations:
42 branches in 2 states (MI & FL)
Interest Rates:
$0 - $4,999 0.50%
$5,000 + 1.00%
Investments:
LMCU just started offering investments for $30/year. You can now invest a portion of your Health Savings Account (HSA) balance in stocks, bonds, mutual funds and other investment caliber products. The LMCU investment lineup features several low cost index funds from the Vanguard family. LMCU is a contender for the best HSA offering by a credit union.
For more information visit the the LMCU website here.
Eligibility Requirements:
None
Fees & Minimum Balances:
$0 Minimum Balance
$0 Monthly Maintenance Fees
Locations:
Internet Only
Interest Rates:
On balances from $0 - $2,000 participants earn next to nothing in interest, but that changes as they offer 1.50% on any balances over $2,000. This makes the Starship HSA attractive to savers with large balances. Below you can see the interest rates offered as of January 30, 2020. Funds are FDIC insured through their bank partner, nbkc Bank.
For more information visit the Starship website here.
Eligibility Requirements:
None
Fees & Minimum Balances:
$0 Minimum Balance
$0 Monthly Maintenance Fees
Locations:
22 Utah bank locations spanning from Logan to Provo and Price to St. George
Interest Rates:
For more information visit the Bank of Utah website here.