Is there an HSA account without monthly fee

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susa
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Is there an HSA account without monthly fee

Post by susa »

We (MFJ) have HSA with Healthequity, balance around around 50,000

Recently, they have started to charge a 3.95 Admin Fee monthly. Yes, the account pays a small amount of interest, circa 15 monthly so it is not a net loss but I would like to find another HSA administrator that does not charge a fee with such a balance. The money is not invested in any kind of fund, just a money market or savings account.

Have never taken a distribution from the HSA (ie. paid for any medical expenses)

They have told me that if I withdraw the funds, they will charge me a fee around 20 but if I can avoid the monthly fee, will just pay the charge.

Do most HSA administrators pay at least 1% interest as would prefer not to "invest" into a fund, just a simple money market would do fine.

In case it matters, we do not have a HDHP as we are retired so no more contributions are planned into an HSA account. We plan to slowly start paying for medical expenses and AFAIK once Medicare premiums start in a few years, these can be paid from the HSA account. We have currently an ACA subsidized Silver level healthplan and have not used the HSA funds.

I found https://www.wellsfargo.com/investing/hsa/roll-over/ and also https://personal.vanguard.com/us/whatwe ... lthsavings

Any others that would fit my description and be "fee free" ?
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boomer
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Re: Is there an HSA account without monthly fee

Post by boomer »

You might check with a local credit union. Some of them have an HSA account without a monthly fee. The interest rate is usually very low; the same as a passbook savings account.

They may ask you if you have a high-deductible health plan. I believe they are required to ask, but they don't police it in any way. You can just say "yes." :happy
jjface
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Re: Is there an HSA account without monthly fee

Post by jjface »

Alliant credit union are fee free and pay 0.65%. You can't get much higher these days. That is more than what you are getting and no fee. I have mine with them and I have had no problems.

http://www.alliantcreditunion.org/bank/ ... s-account/

You can join the credit union by giving a $10 donation to foster care to success. Just keep clicking 'another way to qualify' until you get there when you try to open an account. I think they still deposit $10 into a savings account for you for 'free' to set up your membership so you aren't really paying anything.
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Flobes
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Re: Is there an HSA account without monthly fee

Post by Flobes »

+1 Alliant Credit Union.

No fees to open the account, maintain the account, use the account (free debit card and/or checks and/or online bill pay), close the account. Friendly and professional customer service.

My Medicare Part B and Part D premiums are automatically withdrawn from this Alliant HSA. Medigap (supplement) cannot be paid from an HSA.
jane1
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Re: Is there an HSA account without monthly fee

Post by jane1 »

+1 Alliant CU
Leeraar
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Re: Is there an HSA account without monthly fee

Post by Leeraar »

You don't need an HDHP to have an existing HSA. You do need to have an HDHP to make new current contributions to an HSA.

No need to tell lies in that respect.

L.
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rs899
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Re: Is there an HSA account without monthly fee

Post by rs899 »

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susa
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Re: Is there an HSA account without monthly fee

Post by susa »

Is the transfer transaction simply a matter of asking Healthequity to send funds to new HSA Administrator or handling manual checks after new account opened ?

As I understand it, Form 5498-SA must be filed to report any rollover but any tax software should be able to handle that.

Many thanks for the recommendations given !
GreenGrowTheDollars
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Re: Is there an HSA account without monthly fee

Post by GreenGrowTheDollars »

It had to be a trustee to trustee transfer (a "pull" transaction) to move the money from one bank to another. I could not take personal possession of the funds -- at least that was what BNY/Mellon told us.

Went to the Credit Union, brought the recent statement from BNY/Mellon and Mellon's form, filled out the CU's form, they sent it to BNY/Mellon, and about three weeks later the funds were transferred into the new Credit Union account. (That was the second request. The first one was messed up by the CU rep who was new on the job. :( )
goGators
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Re: Is there an HSA account without monthly fee

Post by goGators »

Fidelity's $48 annual fee is waived if you have $250K or more in assets with them. See section "Retirement Accounts and HSAs" in https://www.fidelity.com/bin-public/060 ... hedule.pdf
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dodecahedron
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Re: Is there an HSA account without monthly fee

Post by dodecahedron »

I got B of A's HSA to waive my monthly fees just by holding (at least) $100K of assets in my Merrill Edge Roth IRA (I just had Vanguard ETFs transferred in kind to Merrill Edge.) This resulted in all kinds of goodies described elsewhere, but waiving fees on the HSA was icing on cake.

I have the money in my B of A HSA invested in Vanguard mutual funds--I am not planning to use the HSA funds any time soon. (They are tentatively earmarked for long term care (LTC); if not needed for LTC, then they will go to my designated charitable beneficiary.)
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whodidntante
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Re: Is there an HSA account without monthly fee

Post by whodidntante »

boomer wrote:You might check with a local credit union. Some of them have an HSA account without a monthly fee. The interest rate is usually very low; the same as a passbook savings account.
I haven't heard the word "passbook" in a while. :happy
cricket49
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Re: Is there an HSA account without monthly fee

Post by cricket49 »

Yes, time for a change.

We currently have our HSA accounts with HealthEquity and have never spent any of the funds. The monthly charges through HealthEquity if you invest the HSA money is too high considering no distributions have been made.

I called Alliant and they said the fund transfer will need to be initiated with HealthEquity after you set up an account with Alliant Credit Union. There is a No Activity or Dormant Account fee using Alliant Credit Union but the rep assured me if you call in once a year and discuss the fees the account will be considered active and no charges will be applied. This is only if you use your HSA as a savings account like we do.
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classicjazzfan
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Re: Is there an HSA account without monthly fee

Post by classicjazzfan »

When Lake Michigan Credit Union recently cut its interest rate on HSA balances over S15,000 from 2% to 1%, my wife and I transferred our respective accounts (despite the $35 account closing fees) to Connexus Credit Union, which pays 1.5% on balances over $5,000 and 2% on balances over $15,000. No fees (including the typically confiscatory account closing fee).

https://www.connexuscu.org/savings/heal ... gs-account
https://www.hsasearch.com/hsa_providers/connexus-cu/
BruDude
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Re: Is there an HSA account without monthly fee

Post by BruDude »

First American bank does not charge any fees for thier basic account.

https://www.firstambank.com/personalban ... -accounts/
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daytona084
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Re: Is there an HSA account without monthly fee

Post by daytona084 »

HSA Bank waives the fee if your balance is over $5000.
guitarguy
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Re: Is there an HSA account without monthly fee

Post by guitarguy »

Not to sidetrack the thread, but I assume this is for cases where the account holder is retired or something?

I currently pay no fees for our HSA account with HDHP through current employer...maybe they eat the fee?
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inittowinit
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Re: Is there an HSA account without monthly fee

Post by inittowinit »

guitarguy wrote:Not to sidetrack the thread, but I assume this is for cases where the account holder is retired or something?

I currently pay no fees for our HSA account with HDHP through current employer...maybe they eat the fee?
Same here. I have my HSA through Health Equity and pay no monthly fee (I assume my employer eats it). I do pay the Investor's Choice fee of .03% for access to institutional plus Vanguard funds.
cricket49
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Re: Is there an HSA account without monthly fee

Post by cricket49 »

inittowinit wrote:
guitarguy wrote:Not to sidetrack the thread, but I assume this is for cases where the account holder is retired or something?

I currently pay no fees for our HSA account with HDHP through current employer...maybe they eat the fee?
Same here. I have my HSA through Health Equity and pay no monthly fee (I assume my employer eats it). I do pay the Investor's Choice fee of .03% for access to institutional plus Vanguard funds.
Some employers do pay the monthly fee for an employee's HSA account. However, with the 2.50 monthly fee (I pay) and the .03% for access to invest in the Vanguard Funds my total charges run about 14.00 monthly. If I move from HealthEquity to Alliant Credit Union I can still invest in Vanguard Funds without paying any additional fees. Fees will be 0.
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Flobes
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Re: Is there an HSA account without monthly fee

Post by Flobes »

cricket49 wrote:... If I move from HealthEquity to Alliant Credit Union I can still invest in Vanguard Funds without paying any additional fees. Fees will be 0.
Alliant Credit Union's HSA is totally fee-free for "cash" accounts.

Alliant's "Self-Managed Investing" HSA option is $5.95/month.
cricket49
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Re: Is there an HSA account without monthly fee

Post by cricket49 »

Flobes wrote:
cricket49 wrote:... If I move from HealthEquity to Alliant Credit Union I can still invest in Vanguard Funds without paying any additional fees. Fees will be 0.
Alliant Credit Union's HSA is totally fee-free for "cash" accounts.

Alliant's "Self-Managed Investing" HSA option is $5.95/month.
I asked them about this. Seems like you get different answers when you ask more than one rep. One rep told me no fees (including investing fees) if the money is in the HSA account. The other rep told me there is a 5.95 charge.
Expect the best. Prepare for the worst.
jane1
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Re: Is there an HSA account without monthly fee

Post by jane1 »

cricket49 wrote:
Flobes wrote:
cricket49 wrote:... If I move from HealthEquity to Alliant Credit Union I can still invest in Vanguard Funds without paying any additional fees. Fees will be 0.
Alliant Credit Union's HSA is totally fee-free for "cash" accounts.

Alliant's "Self-Managed Investing" HSA option is $5.95/month.
I asked them about this. Seems like you get different answers when you ask more than one rep. One rep told me no fees (including investing fees) if the money is in the HSA account. The other rep told me there is a 5.95 charge.
AFAIK, the investing fee is $5.95 per month. See
http://www.alliantcreditunion.org/inves ... ts-account

Vanguard Admiral Funds are available as part of that (Total Stock, Total Intl, 500 Index, etc)
https://www.savedaily.com/partners/acu/funds.asp
ERISA Stone
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Re: Is there an HSA account without monthly fee

Post by ERISA Stone »

Optum has no fee if the cash balance is greater than $5k.
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boomer
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Re: Is there an HSA account without monthly fee

Post by boomer »

boomer wrote:
You might check with a local credit union. Some of them have an HSA account without a monthly fee. The interest rate is usually very low; the same as a passbook savings account.


I haven't heard the word "passbook" in a while. :happy


Haha, I guess that just slipped out. ;)
spitty
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Re: Is there an HSA account without monthly fee

Post by spitty »

To the OP, I thinks it's a great idea to consider transferring your HSA account. Look for one that provides a decent selection of investing options with low yearly cost. We have ours with Optum--they have several choices, some with very high yearly fees. We chose a Columbia index fund (about 0.4% fee) and maintain 85% of the total balance there. Some don't realize that you can "reimburse" yourself anytime after a medical expense. For example, pay today's dental bill on VISA, save the receipt, and take that money from your HSA when you're ready for a nursing home at 90!
kaneohe
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Re: Is there an HSA account without monthly fee

Post by kaneohe »

GreenGrowTheDollars wrote:It had to be a trustee to trustee transfer (a "pull" transaction) to move the money from one bank to another. I could not take personal possession of the funds -- at least that was what BNY/Mellon told us.

...............................................
A different answer here https://thefinancebuff.com/how-to-rollo ... r-fee.html
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susa
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Re: Is there an HSA account without monthly fee

Post by susa »

spitty wrote:... and take that money from your HSA when you're ready for a nursing home at 90!
Yes, have never taken any funds to pay for medical bill but it has been discussed in other forum threads that not depleting the funds in ones lifetime could result in unpleasant tax consequence for nonspouse beneficiary/-ies. Thus it seems prudent to start taking the money out and our (MFJ) plan is to slowly deplete the 50k over the next 5-8 years, not wait until 90.
''
523HRR
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Re: Is there an HSA account without monthly fee

Post by 523HRR »

ERISA Stone wrote:Optum has no fee if the cash balance is greater than $5k.
+1 Very happy with Optum Bank HSA; balance $50K+. Admiral class Vanguard funds available for investments without the usual minimums.
Oliver
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Re: Is there an HSA account without monthly fee

Post by Oliver »

I found that Saturna was the best/cheapest for me. I am just beginning my investing in HSA accounts. You need to make one trade a year ($15 stocks/ETFs, $15-$25 mutual funds) to avoid an inactivity fee ($25). By purchasing an etf once a year and forgoing automatic reinvestment, it costs me a total of $15 per year.

PS There are no monthly/annual maintenance fees.

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