HSA Bank Fees

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tvent
Posts: 13
Joined: Fri May 20, 2011 6:37 am

HSA Bank Fees

Post by tvent » Sun Mar 26, 2017 7:45 pm

HSA Bank is my health savings account administrator. I have both a cash account and an investment account (TD Ameritrade with Vanguard a Fund) with HSA Bank. Both accounts exceed the minimum balance for fees, however, I continue to be charged the $2.50 HSA Service Fee and the $3.00 HSA Investment Service Fee each month.

More than a month ago, I noticed these fees and called them. They ended up crediting my account $40 but have refused to give any detailed explanation of what the credit was for. I also wrote them a long letter about the excess fees, which they did not respond to.

I've read the Bogleheads Health Savings Account Wiki but don't seem to see a better alternative. Does anyone recommend a lower cost administrator over HSA Bank? I would need to have access to Vanguard Funds.

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knpstr
Posts: 2000
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Location: Michigan

Re: HSA Bank Fees

Post by knpstr » Sun Mar 26, 2017 7:52 pm

I have HSA bank and use the TD ameritrade connection.

I keep the minimum balance at HSA Bank >$5000 and everything else goes to TD.

I get charged $0 per year in my HSA and Investment HSA. Not sure about your problem, maybe call again?

:beer
Very little is needed to make a happy life; it is all within yourself, in your way of thinking. -Marcus Aurelius

theplayer11
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Joined: Tue Jul 22, 2014 8:55 pm

Re: HSA Bank Fees

Post by theplayer11 » Sun Mar 26, 2017 7:58 pm

Do you have $5k at HSA Bank? That's what you need to avoid the fees. I didn't like having $5k gaining little interest, so I recently switched.

lsui
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Joined: Sun Mar 05, 2017 9:26 pm

Re: HSA Bank Fees

Post by lsui » Sun Mar 26, 2017 11:15 pm

I leave 0 balance in the HSABank cash account (all invested with TDA), and I am charged $3 investment fee each month, no $2.5 fee. Each month, after they charge the $3 fee, I transfer $3 back from TDA to cash account to bring the balance back to 0 from $3 debit. If the expected investment return is 5%, then $5000 cash means cost of $250 lost investment return per year, I would never do that.

theplayer11
Posts: 405
Joined: Tue Jul 22, 2014 8:55 pm

Re: HSA Bank Fees

Post by theplayer11 » Mon Mar 27, 2017 3:34 pm

lsui wrote:I leave 0 balance in the HSABank cash account (all invested with TDA), and I am charged $3 investment fee each month, no $2.5 fee. Each month, after they charge the $3 fee, I transfer $3 back from TDA to cash account to bring the balance back to 0 from $3 debit. If the expected investment return is 5%, then $5000 cash means cost of $250 lost investment return per year, I would never do that.
Not sure why you are not being charged the standard $2.50/mth maintenance fee on balance below $5k.. I recently switched out because of that fee.($5.50 total)

Bfwolf
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Joined: Thu Oct 14, 2010 11:19 am

Re: HSA Bank Fees

Post by Bfwolf » Mon Mar 27, 2017 3:37 pm

theplayer11 wrote:
lsui wrote:I leave 0 balance in the HSABank cash account (all invested with TDA), and I am charged $3 investment fee each month, no $2.5 fee. Each month, after they charge the $3 fee, I transfer $3 back from TDA to cash account to bring the balance back to 0 from $3 debit. If the expected investment return is 5%, then $5000 cash means cost of $250 lost investment return per year, I would never do that.
Not sure why you are not being charged the standard $2.50/mth maintenance fee on balance below $5k.. I recently switched out because of that fee.($5.50 total)
Good question. Is he saying that the fee is avoided by having a $0 balance? If so, that is some serious legwork just to save $2.50 a month.

deltaneutral83
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Re: HSA Bank Fees

Post by deltaneutral83 » Mon Mar 27, 2017 3:47 pm

I've read up on HSA bank, and I guess it boils down to approx $60 a year to keep no balance and be able to invest with TDA? Do you all have HSA deducted from your check into HSA bank? I am curious as to the process because I keep my HSA at my current credit union but am hitting a balance of $5k where I'd like to move it to HSA bank and subsequently to TDA and into VTI and call it a day. I'd honestly be transferring any the HSAbank account straight to TDA every pay period if possible?

lsui
Posts: 19
Joined: Sun Mar 05, 2017 9:26 pm

Re: HSA Bank Fees

Post by lsui » Mon Mar 27, 2017 5:07 pm

Bfwolf wrote: Good question. Is he saying that the fee is avoided by having a $0 balance? If so, that is some serious legwork just to save $2.50 a month.
What serious leg work are you talking about? I just click a few buttons on HSABank site every month, to transfer back $3 from TDA to pay the fee, if that is too much leg work, then just enjoy paying $30/year fee, your choice.

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knpstr
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Location: Michigan

Re: HSA Bank Fees

Post by knpstr » Mon Mar 27, 2017 6:30 pm

I use my HSA as I incur expenses, I don't do the save/deferral of costs. And my deductible is $6,500 so I don't mind having $5,000+ at the ready on my debit card at all times.

:beer
Very little is needed to make a happy life; it is all within yourself, in your way of thinking. -Marcus Aurelius

tvent
Posts: 13
Joined: Fri May 20, 2011 6:37 am

Re: HSA Bank Fees

Post by tvent » Mon Mar 27, 2017 8:02 pm

So thank you for all the replies. I have greater than 5k in both the cash and investment accounts. It is an interesting idea to transfer the money out of the investment account into the cash account each month.

I called HSA Bank customer service today and was told by the representative that if just one of the accounts falls below the minimum, that I would be charged the fee for both the cash and investment accounts. Is this true? Apparently there is a more detailed fee schedule than the one they post online.

I really feel like switching if there is another custodian with better customer service and the same fee schedule/investment options.

The customer service representatives tell me a different thing every time I call. I was on the line for about 26 minutes (mostly on hold) before I had to give up due to time constraints. I asked several times to speak with a manager, but was put on hold instead.

If anyone has switched out of HSA Bank, what custodian do you use now?

Sailor36
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Joined: Mon May 04, 2015 7:15 pm

Re: HSA Bank Fees

Post by Sailor36 » Tue Apr 04, 2017 1:15 pm

I also have an account with HSA Bank with investments at TD Ameritrade and I am being charged $2.00 plus $3.50 monthly despite having a balance well in excess of $5,000 in the HSA Bank account. I called today and the rep said the charges are correct; there is no way to get the fees waived for my account. She was not forthcoming on how I could get a correct fee schedule for my account.

I have emailed them pointing out how the fees they are charging are not the same as the schedule online and asking how to get a correct fee schedule - we'll see what happens.

boyler99
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Joined: Mon Sep 16, 2013 9:10 pm

Re: HSA Bank Fees

Post by boyler99 » Tue Apr 04, 2017 7:26 pm

I use SelectAccount, which has had excellent customer service and they offer the Vanguard S&P 500 Admiral Fund (ER = 0.05%) - VFIAX - with no minimum amount required to invest in the Admiral fund. They do require a $1000 balance in the cash account however. The fee for the investment account (Schwab) is $18/year and the cash account has a fee of $12/year (Thrift Saver). They also allow automatic monthly investments into the Vanguard S&P index fund, and because it's a mutual fund and not an ETF, you don't need to worry about buying whole shares. For example if you want to invest exactly $279 every month, no problem.

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