HSA fees??

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zback
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HSA fees??

Post by zback » Wed Oct 04, 2017 11:23 am

I was going to open up a HSA with a local bank and when I asked about maintenance fees, this was their answer: “The annual fee is 50 basis points (0.50%) of the market value of the E-HSA. It is charged on the market value on a monthly basis. Other than that, there is NO other fees or charges associated with the E-HSA”. Is that not crazy high, 0.5%?! Most places just have their routine fee, which seems to be less than $100.

deltaneutral83
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Re: HSA fees??

Post by deltaneutral83 » Wed Oct 04, 2017 11:29 am

Well, $100 a year would be 50 bps on $20,000. If you're single that would take several years to get to with no use of funds assuming you're investing in equites.

zback
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Re: HSA fees??

Post by zback » Wed Oct 04, 2017 11:46 am

I'm married. I guess my point is that I was thinking this rate seems high and it will add up. Especially down the road when the account is large. It seems like within 3 years, when I'm above 20k with interest, this place will be more expensive than fidelity etc.

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jhfenton
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Re: HSA fees??

Post by jhfenton » Wed Oct 04, 2017 11:48 am

50 bp is quite high if you have a sizable HSA balance. I'm jumping ship from my employer-sponsored HSA because they increased their investment fee from 10 bp to 20 bp (plus $2/month). With the new fee, we'd be paying more than $100 per year (>$45K HSA).

I'm in the process of moving to Lively with their flat $2.50/month investment fee (payable from outside the HSA to boot).

Spirit Rider
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Re: HSA fees??

Post by Spirit Rider » Wed Oct 04, 2017 11:56 am

jhfenton wrote:
Wed Oct 04, 2017 11:48 am
50 bp is quite high if you have a sizable HSA balance. I'm jumping ship from my employer-sponsored HSA because they increased their investment fee from 10 bp to 20 bp (plus $2/month). With the new fee, we'd be paying more than $100 per year (>$45K HSA).

I'm in the process of moving to Lively with their flat $2.50/month investment fee (payable from outside the HSA to boot).
If you are looking for an HSA with investment options, the above referenced plan seems like a good option.

If you are just looking for an HSA where the funds will only be in a savings account, you should be able to find a local credit union with an HSA and no fees. It will probably have a higher interest rate than a bank anyway.

zback
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Re: HSA fees??

Post by zback » Thu Oct 05, 2017 9:11 am

Any other thoughts/opinions?

financeidiot
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Re: HSA fees??

Post by financeidiot » Thu Oct 05, 2017 9:34 am

Depends on how you want to use the HSA. If you have a small balance or intend to use it immediately for healthcare expenses as they come up, an AUM model might save you in fees. If you have a large balance or intend to use it for investing, find the one that is cheapest for doing that. Hopefully, HSAs will become popular enough and hold enough assets for larger financial institutions (Fidelity, Vanguard, etc.) start taking them seriously and offer low cost options.

Usually, your local bank or institution will not have the best deal. HSA Bank, Saturna, and a few other HSA providers are popular with Bogleheads. Lively is interesting but new.

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southerndoc
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Re: HSA fees??

Post by southerndoc » Thu Oct 05, 2017 9:40 am

I really wish Vanguard or Fidelity would offer them.

zback
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Re: HSA fees??

Post by zback » Thu Oct 05, 2017 9:40 am

I will be using it for investing only.

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indexfundfan
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Re: HSA fees??

Post by indexfundfan » Thu Oct 05, 2017 9:43 am

Saturna is the other alternative, and I just started an account with them. Saturna is good if you make the contribution only once a year.
My signature has been deleted.

foglifter
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Re: HSA fees??

Post by foglifter » Thu Oct 19, 2017 12:21 pm

southerndoc wrote:
Thu Oct 05, 2017 9:40 am
I really wish Vanguard or Fidelity would offer them.
Yeah, that would be awesome. Actually, Fidelity offers HSAs to employers, but not to individuals. I keep nagging about it by sending them feedback/suggestion messages. Technologically it would be a no-brainer since Fidelity already offers standard banking features through their Cash Management account (which under the hood is simply a brokerage account with an FDIC-insured core kept in selected banks). An HSA could be organized as another Cash Mgmt account. The good thing is they wouldn't need to mess with a separate "core account" since both cash and investments could be held in the same account.

Dear Fidelity, PLEASE give us HSA! 8-)

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southerndoc
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Re: HSA fees??

Post by southerndoc » Fri Oct 20, 2017 4:18 pm

The PEO I joined uses HealthEquity. $2.50/month. A little better than Bank of America's $4.50/month. HealthEquity has Vanguard funds available.

Helo80
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Re: HSA fees??

Post by Helo80 » Fri Oct 20, 2017 6:14 pm

southerndoc wrote:
Thu Oct 05, 2017 9:40 am
I really wish Vanguard or Fidelity would offer them.

My guess is that it would be a legal headache that they do not want to take on. Neither are stupid and want your assets. (I don't mean that in a bad way)

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