Alliant Credit Union no longer offering HSA's as of 11/9

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cuda74360
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Alliant Credit Union no longer offering HSA's as of 11/9

Post by cuda74360 » Mon Sep 18, 2017 9:24 pm

I've been looking at HSA's, and came across this today.

Alliant Credit Union is resigning as custodian of all HSA accounts effective November 9th. All accounts will be moved to HealthEquity.

http://www.nasdaq.com/press-release/hea ... 0918-00660

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BolderBoy
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Re: Alliant Credit Union no longer offering HSA's as of 11/9

Post by BolderBoy » Mon Sep 18, 2017 10:12 pm

cuda74360 wrote:
Mon Sep 18, 2017 9:24 pm
I've been looking at HSA's, and came across this today.

Alliant Credit Union is resigning as custodian of all HSA accounts effective November 9th. All accounts will be moved to HealthEquity.

http://www.nasdaq.com/press-release/hea ... 0918-00660
Well this is unfortunate. A run through the HealthEquity website is VERY untelling. No interest rates published.

Time to look for another custodian...?
“Where you stand, depends on where you sit” - Rufus Miles | "Never underestimate one's capacity to overestimate one's abilities"

Pax
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Re: Alliant Credit Union no longer offering HSA's as of 11/9

Post by Pax » Mon Sep 18, 2017 10:17 pm

All I want to use my HSA is for bonds. They have Vanguard Total Bond Market Idx Instlpls (VBMPX).
What do you think about the "Self-driven" admin fee of .033% monthly?

Interest Rates Here
http://resources.healthequity.com/Docum ... hedule.pdf

I also noticed that on their Tier 4 (Over $10,000.00), the interest rate is 1.50% (APY 0.41% - 1.40%) on their HSA Yield Plus cash
Interest bearing
& non-FDIC insured
Same tier for the FDIC Insured is Interest rate 0.40% (APY 0.12% to 0.37%)
Last edited by Pax on Mon Sep 18, 2017 10:18 pm, edited 1 time in total.

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BolderBoy
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Re: Alliant Credit Union no longer offering HSA's as of 11/9

Post by BolderBoy » Mon Sep 18, 2017 10:17 pm

Hmmmm.

https://en.wikipedia.org/wiki/HealthEquity

So it is a for-profit, publicly traded company. Glug. No wonder it doesn't publish the interest rates it pays on its HSA accounts.
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Pax
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Re: Alliant Credit Union no longer offering HSA's as of 11/9

Post by Pax » Mon Sep 18, 2017 10:20 pm

BolderBoy wrote:
Mon Sep 18, 2017 10:17 pm
Hmmmm.

https://en.wikipedia.org/wiki/HealthEquity

So it is a for-profit, publicly traded company. Glug. No wonder it doesn't publish the interest rates it pays on its HSA accounts.
Interest Rates Here
http://resources.healthequity.com/Docum ... hedule.pdf

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BolderBoy
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Re: Alliant Credit Union no longer offering HSA's as of 11/9

Post by BolderBoy » Mon Sep 18, 2017 10:30 pm

Pax wrote:
Mon Sep 18, 2017 10:20 pm
BolderBoy wrote:
Mon Sep 18, 2017 10:17 pm
Hmmmm.

https://en.wikipedia.org/wiki/HealthEquity

So it is a for-profit, publicly traded company. Glug. No wonder it doesn't publish the interest rates it pays on its HSA accounts.
Interest Rates Here
http://resources.healthequity.com/Docum ... hedule.pdf
Thanks.

Not impressed. "Fees reduce earnings" "Not FDIC insured" (for the 1.5% you cited, which has an APY of 1.4% maximum).

Not impressed. Time to look elsewhere.
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Soaker
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Re: Alliant Credit Union no longer offering HSA's as of 11/9

Post by Soaker » Mon Sep 18, 2017 10:46 pm

Per the PDF in the "Invest Your HSA" section of the HealthEquity.com website:

"All investment-related fees are calculated based on the average daily investment balance."

"Monthly investing administration fees": .033%

So on an invested balance of $50K, that's a monthly fee of $16.50, compared to the $5.95 with Save Daily through Alliant Credit Union.

Looks like it's time to check out those HSA options again.

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Re: Alliant Credit Union no longer offering HSA's as of 11/9

Post by Soaker » Mon Sep 18, 2017 11:08 pm

And here's the information Alliant CU is putting out:

http://www.alliantcreditunion.org/healthequity-hsa-faqs

With the highlights of the timeline being:
What happens to investment accounts? Are they liquidated?
Alliant Credit Union HSA account holders with investments will be instructed to liquidate their investments no later than October 17, 2017. In the event an investment account holder does not liquidate their investments prior to the liquidation date, their investments will be liquidated and transferred as cash to their new HealthEquity HSA at conversion.

Do I have to do anything to have my HSA transferred?
You are not required to take any actions for your account to be transferred to HealthEquity. You only need to take action if you choose to select a different HSA provider.

When will my balance be moved?
Your HSA funds will be transferred on Thursday, November 9, 2017. Funds will be available in your new HealthEquity HSA account and available to use with your debit card beginning Friday, November 10, 2017.

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Re: Alliant Credit Union no longer offering HSA's as of 11/9

Post by GuineaPig » Tue Sep 19, 2017 9:11 am

What a drag. I'm guessing that like me, many of the people here chose Alliant for our HSAs specifically because it was a pretty no-fuss option: no fees and somewhat decent interest rate on the bank account. I also happened to have a bank account with them anyway, which made it particularly attractive, and I live near an actual physical branch! Health Equity seems to be the opposite: various fees plus no FDIC insurance on their savings account (if you want to earn interest), and no branches.

I think I will move on somewhere else and am figuring out where to go. Having read the Morningstar report from June, I'm leaning towards HSA Authority, but am interested in what others here decide.

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Re: Alliant Credit Union no longer offering HSA's as of 11/9

Post by BolderBoy » Tue Sep 19, 2017 9:33 am

GuineaPig wrote:
Tue Sep 19, 2017 9:11 am
I think I will move on somewhere else and am figuring out where to go. Having read the Morningstar report from June, I'm leaning towards HSA Authority, but am interested in what others here decide.
I have two credit unions in my county that offer HSAs (under similar conditions that Alliant "did", though with lower interest rates) and will likely go with one of them. Then there is the usual hassle of changing the auto-withdrawals from Alliant to the new place with less than 6 weeks to get it done.

I looked at HSA Authority and it seems Ho Hum to me.

The timing of this sucks. Just froze my credit bureau info... :annoyed
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Re: Alliant Credit Union no longer offering HSA's as of 11/9

Post by BolderBoy » Tue Sep 19, 2017 12:13 pm

For folks who live in Boulder County, Colorado I found a reasonable solution to the Alliant-bail.

Elevations Credit Union (formerly the U of Colorado FCU) offers HSAs almost as good as Alliant's were (lower basic interest rate of 0.25%). I didn't see any investing options, but lots of CDs are available with monthly crediting of interest and early w/d penalty of only the current month's interest.

And they accept custodianship even if you won't be making anymore contributions to the account (age >64, on Medicare). No fees. Debit card and teller-printed, blank checks provided.

For non-Boulder County residents who live within reasonable driving distance of Boulder County there is a $15 tax deductible trick that can be used to qualify as well. Presently they require face-to-face opening of the account. Even residents of other states who come to Boulder would qualify in this way.

I've started the transfer process.

HTH someone...

(PS - I called USAA and asked about HSA accounts. The lady on the phone said, "I never heard of those." Virginia Credit Union has a $25/yr fee. Premier Members Credit Union never called me back.)


Edit - Elevations CU turned out to be a less-than-stellar choice. I opened an account with First Tech.
Last edited by BolderBoy on Tue Oct 03, 2017 11:29 pm, edited 1 time in total.
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Re: Alliant Credit Union no longer offering HSA's as of 11/9

Post by Soaker » Tue Sep 19, 2017 2:37 pm

With Health Equity effectively adding about 40 basis points of expense to its Vanguard funds, it's not a realistic option. That fee setup is why I left Health Savings Administrators. I'll most likely go to one which has the option to invest in Vanguard's ETFs without commission at TD Ameritrade. I don't mind keeping a relatively small cash balance.

I'm leaning toward moving to Elements Financial. To avoid the annual fee ($48), keep $2500 in the cash account at 0.5% interest. There's also a nuisance fee of $25 for a wire transfer from the bank account to TD Ameritrade, which would be once a year.

That works better for me than HSA Bank: to avoid the annual fee ($66, which is two separate fees of $2.50 and $3.00 per month), keep $5000 in the cash account at 0.15% interest. No wire transfer fee there, but I think the expected return on the additional $2500 invested offsets the wire transfer fee irritation.

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Re: Alliant Credit Union no longer offering HSA's as of 11/9

Post by CAsage » Tue Sep 19, 2017 5:45 pm

Wow - I have a smallish HSA at Alliant, and I hear about this for the first time here? Criminy! Thanks again, Bogleheads are invaluable.

Now, where to find a plain old free savings account for my small HSA. After having frozen my credit. Any suggestions on where?
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Re: Alliant Credit Union no longer offering HSA's as of 11/9

Post by GuineaPig » Tue Sep 19, 2017 6:37 pm

CAsage wrote:
Tue Sep 19, 2017 5:45 pm
Wow - I have a smallish HSA at Alliant, and I hear about this for the first time here? Criminy! Thanks again, Bogleheads are invaluable.

Now, where to find a plain old free savings account for my small HSA. After having frozen my credit. Any suggestions on where?
I'm feeling lucky that I'd procrastinated on freezing my credit until I had sorted out a few other things. No real advice on where -- depositaccounts.com lists some places, but Alliant had the big advantage of seeming very honest about not having fees. Other places really hide what sorts of fees they charge, though they may pay high enough interest to more than make up for the fees.

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Re: Alliant Credit Union no longer offering HSA's as of 11/9

Post by mpsz » Tue Sep 19, 2017 6:40 pm

Thanks for posting. In all honestly I'm a bit disappointed that I had to learn about this here.

HealthEquity offers an "index investor" plan which is $36 + 0.24%/yr. Compared to Alliant, you are paying less in fees if your balance is below ((5.95*12)-36)/0.0024 = $14,750. They waive the $36 fee the first year but I am ignoring that as it is a gimmick.

That being said, I'm not sure if it's possible or how difficult it will be to get onto the "index" plan compared to their standard plan.

http://healthequity.com/IndexInvestor/

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Re: Alliant Credit Union no longer offering HSA's as of 11/9

Post by LadyGeek » Tue Sep 19, 2017 6:51 pm

I have added this update to the wiki. See: Health savings account (Alliant Credit Union (HealthEquity))

After the transition occurs, can someone provide an update for the wiki?

(Thanks to the member who requested this update.)
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Re: Alliant Credit Union no longer offering HSA's as of 11/9

Post by RabbMD » Tue Sep 19, 2017 7:04 pm

Rediculous... No way am I letting it move. THe question now is where to move to? I currently use two HSAs one with my investment funds at hsabank TD ameritrade. I like to have funds in a normal interest HSA account as well to deposit and withdraw yearly (I'm withdrawing old receipts from the last 5-10 years I have been saving because they are starting to fade.)

Anyone use Connexus Credit Union? From hsarates.com it looks good. $5 tp join, web interface looks fine, 2% interest rate on $15,000 + balances. Maybe a $2 monthly fee but the internets reports seem to be conflicting.

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Re: Alliant Credit Union no longer offering HSA's as of 11/9

Post by cuda74360 » Tue Sep 19, 2017 8:18 pm

I just applied for one at First Tech Federal Credit Union. Their 'HSA Checking' account pays 1.00% APY with no fees. No investment options, though.
https://www.firsttechfed.com/Bank/Checking/HSA-Checking

You can qualify for membership by becoming a member of either the Financial Fitness Association (https://financialfitnessassociation.org/) or the Computer History Museum (http://www.computerhistory.org.)

I've had my credit frozen at all 5 bureaus since 2013... will be interesting to see what happens.

UPDATE:
I spoke to First Tech today, and they use both ChexSystems and Equifax (not Experian as I was initially told.) You'll have to unfreeze them both before applying.
RabbMD wrote:
Tue Sep 19, 2017 7:04 pm
Rediculous... No way am I letting it move. THe question now is where to move to? I currently use two HSAs one with my investment funds at hsabank TD ameritrade. I like to have funds in a normal interest HSA account as well to deposit and withdraw yearly (I'm withdrawing old receipts from the last 5-10 years I have been saving because they are starting to fade.)

Anyone use Connexus Credit Union? From hsarates.com it looks good. $5 tp join, web interface looks fine, 2% interest rate on $15,000 + balances. Maybe a $2 monthly fee but the internets reports seem to be conflicting.
Last edited by cuda74360 on Tue Sep 26, 2017 8:09 pm, edited 2 times in total.

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Re: Alliant Credit Union no longer offering HSA's as of 11/9

Post by NancyABQ » Tue Sep 19, 2017 8:28 pm

CAsage wrote:
Tue Sep 19, 2017 5:45 pm
Wow - I have a smallish HSA at Alliant, and I hear about this for the first time here? Criminy! Thanks again, Bogleheads are invaluable.

Now, where to find a plain old free savings account for my small HSA. After having frozen my credit. Any suggestions on where?
*sigh* I am in the same situation. Smallish HSA (~$2000) and not likely to contribute to it any more. I had parked it at Alliant as a good place where it would earn decent interest and not actually lose money.

I will look into First Tech Federal Credit Union, I guess. I don't need investment options, just a (preferably decent, but at least) non-negative interest rate after fees!

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Re: Alliant Credit Union no longer offering HSA's as of 11/9

Post by BolderBoy » Wed Sep 20, 2017 10:34 am

NancyABQ wrote:
Tue Sep 19, 2017 8:28 pm
I will look into First Tech Federal Credit Union, I guess. I don't need investment options, just a (preferably decent, but at least) non-negative interest rate after fees!
Please let us know if they will open the account without face-to-face interaction. You are in NM, right? First Tech FCU is in Oregon.
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Re: Alliant Credit Union no longer offering HSA's as of 11/9

Post by GuineaPig » Wed Sep 20, 2017 6:14 pm

I just spoke with FirstTech over the phone. It does look like one should be able to open an account. I wasn't convinced that their telephone support was very competent.

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Re: Alliant Credit Union no longer offering HSA's as of 11/9

Post by Soaker » Thu Sep 21, 2017 7:04 pm

I received the e-mail from Alliant today notifying me of the HSA transition from them to HealthEquity.

1. The date for liquidating investments held with Save Daily has been moved back a week.
Members with HSA Investment portfolios must transfer their investment portfolio funds back to their regular non-investment HSA account no later than October 24, 2017.
2. There's no maintenance fee for holding a cash account at HealthEquity.
We are pleased to let you know that pursuant to the fee schedule in effect following the transition, HealthEquity will continue Alliant’s tradition of having no monthly account maintenance fees for your HSA.
But for an investment account you still have to pay. Save Daily calls their $5.95 a "Monthly Program Fee", and HealthEquity calls the 3.3 basis points per month/40 bp per year tacked onto the Vanguard mutual funds a "Monthly Investing Administration Fee".

3. On the subject of lifting credit freezes to open new accounts elsewhere, I asked four candidates for my HSA account what they would require:

HSA Authority and Elements Financial: The Chex Systems freeze is the only one they ask to have lifted.

SelectAccount: "We do not check your credit with any credit reporting agency. It would not be necessary for you to lift the freezes to open an HSA with SelectAccount." (Surprising, but maybe it's because they are a life insurance company rather than a bank or credit union.)

HSA Bank: Responded with a generic e-mail asking me to call Client Assistance. This was the most expensive option I was considering so I'm not going to follow up.

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Re: Alliant Credit Union no longer offering HSA's as of 11/9

Post by NancyABQ » Thu Sep 21, 2017 8:07 pm

Soaker wrote:
Thu Sep 21, 2017 7:04 pm

2. There's no maintenance fee for holding a cash account at HealthEquity.
We are pleased to let you know that pursuant to the fee schedule in effect following the transition, HealthEquity will continue Alliant’s tradition of having no monthly account maintenance fees for your HSA.
I had taken a quick look at the HealthEquity website and couldn't find anything about fees for non-investment accounts, so thanks for doing the legwork.

If that's the case, I will probably just let them transition my account to HealthEquity. I really don't feel like dealing with moving my HSA for the second time in 6 months. Rather annoyed with Alliant for dropping me :(

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Re: Alliant Credit Union no longer offering HSA's as of 11/9

Post by GuineaPig » Thu Sep 21, 2017 10:11 pm

Soaker wrote:
Thu Sep 21, 2017 7:04 pm
I received the e-mail from Alliant today notifying me of the HSA transition from them to HealthEquity.

1. The date for liquidating investments held with Save Daily has been moved back a week.
Members with HSA Investment portfolios must transfer their investment portfolio funds back to their regular non-investment HSA account no later than October 24, 2017.
2. There's no maintenance fee for holding a cash account at HealthEquity.
We are pleased to let you know that pursuant to the fee schedule in effect following the transition, HealthEquity will continue Alliant’s tradition of having no monthly account maintenance fees for your HSA.
But for an investment account you still have to pay. Save Daily calls their $5.95 a "Monthly Program Fee", and HealthEquity calls the 3.3 basis points per month/40 bp per year tacked onto the Vanguard mutual funds a "Monthly Investing Administration Fee".

3. On the subject of lifting credit freezes to open new accounts elsewhere, I asked four candidates for my HSA account what they would require:

HSA Authority and Elements Financial: The Chex Systems freeze is the only one they ask to have lifted.

SelectAccount: "We do not check your credit with any credit reporting agency. It would not be necessary for you to lift the freezes to open an HSA with SelectAccount." (Surprising, but maybe it's because they are a life insurance company rather than a bank or credit union.)

HSA Bank: Responded with a generic e-mail asking me to call Client Assistance. This was the most expensive option I was considering so I'm not going to follow up.
Thank you for the research. The thing I don't like with the HealthEquity savings account is that to get the good interest rate, you have to give up FDIC insurance and that's a no-go for me. I've been vacillating a lot on this all and have followed the First Tech Credit Union advice given above. They appear to pay 1% interest and have no fees or strings of any sort. I may very well switch to a place that allows investments in the future, when my HSA balance is higher, but for now, I'll go with another credit union. As a bonus, I live within 50 miles of an actual branch and I like being able to drive over if I really need help.

I have applied for my account with First Tech. Today, I also spoke with two people who seemed competent, friendly, and knowledgeable (contrary to my own experience with them yesterday). They have people who answer the phones until 11 pm Pacific time and my experience calling in the evening today is that they quickly answer the phone in the evening, but not during the day.

Hopefully, within the next couple of years a Vanguard, Fidelity, or Schwab enters this space and really makes the HSA experience much friendlier for the consumer.

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Re: Alliant Credit Union no longer offering HSA's as of 11/9

Post by killjoy2012 » Thu Sep 21, 2017 10:41 pm

Subscribing.

Sad that the first I'm hearing of this is here, and not from Alliant. Interested in where people are moving to.

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Re: Alliant Credit Union no longer offering HSA's as of 11/9

Post by curiouskitty » Fri Sep 22, 2017 1:32 am

The other important question is does Alliant do direct rollovers and do they cost more or less than withdrawing by check?

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Re: Alliant Credit Union no longer offering HSA's as of 11/9

Post by curiouskitty » Fri Sep 22, 2017 1:47 am

killjoy2012 wrote:
Thu Sep 21, 2017 10:41 pm
Subscribing.

Sad that the first I'm hearing of this is here, and not from Alliant. Interested in where people are moving to.
I have an account with Optum with the fee covered by work. They offer Vanguard funds at normal expense ratios so I will transfer there. Not sure how much the monthly fee is without an employer but worth considering as the funds are good :sharebeer

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Re: Alliant Credit Union no longer offering HSA's as of 11/9

Post by GuineaPig » Fri Sep 22, 2017 2:41 pm

On http://www.alliantcreditunion.org/healthequity-hsa-faqs Alliant has this info:
What if I don’t want my HSA transferred to HealthEquity?
If you do not want your HSA automatically switched to HealthEquity, you may liquidate your account and move your HSA funds to an HSA custodian of your choice by November 3, 2017, using one the following options:

Option 1: Request a complete distribution of your HSA funds by completing the HSA withdrawal form. In this case, the funds will be distributed to you and you will be responsible for depositing the funds with your new HSA custodian within 60 days. There may be tax implications. Consult with a tax advisor prior to exercising this distribution method.
Option 2: Provide us with a signed transfer request from the new custodian or trustee to directly transfer your HSA. The request must be submitted on the new custodian’s HSA transfer form. Please send the transfer request to: Alliant Credit Union, c/o HSA Transition, P.O Box 66945, 11545 W. Touhy Avenue, Chicago, IL 60666-0945 or fax to 773-462-8735
I am in the process of opening an HSA at First Tech credit union. Does anybody know which of the above is the easier way of doing things? Does anybody know if Alliant is going to charge me for moving to another credit union?

HSAs may be a good deal, but they are such a pain!

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Re: Alliant Credit Union no longer offering HSA's as of 11/9

Post by GuineaPig » Fri Sep 22, 2017 2:48 pm

To answer my own questions: I just called Alliant and they said there would be no fees related to transferring. I also believe (not sure) that the easiest is for me to open the new account elsewhere and then use the signed transfer request from the new custodian.

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Re: Alliant Credit Union no longer offering HSA's as of 11/9

Post by Soaker » Fri Sep 22, 2017 4:12 pm

I decided to move my HSA to SelectAccount. $12/year for the basic account plus $18/year for the Schwab brokerage account, and Schwab's ETFs at 3 or 4 basis points per year.

The caveat about SelectAccount is that it's an insurance company so there's no federal insurance on the cash you hold with them. If I wanted to hold cash instead of investing with Schwab I would go for a bank or credit union's HSA. SelectAccount is owned by Aware Integrated Inc. which is the parent of Blue Cross and Blue Shield of Minnesota.

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Re: Alliant Credit Union no longer offering HSA's as of 11/9

Post by GuineaPig » Fri Sep 22, 2017 11:01 pm

Soaker wrote:
Fri Sep 22, 2017 4:12 pm
I decided to move my HSA to SelectAccount. $12/year for the basic account plus $18/year for the Schwab brokerage account, and Schwab's ETFs at 3 or 4 basis points per year.

The caveat about SelectAccount is that it's an insurance company so there's no federal insurance on the cash you hold with them. If I wanted to hold cash instead of investing with Schwab I would go for a bank or credit union's HSA. SelectAccount is owned by Aware Integrated Inc. which is the parent of Blue Cross and Blue Shield of Minnesota.
Select Account was my runner up. However, I have a relatively small HSA and I was planning to use the HSA for a treasury bond ETF, and when all was said and done, I wasn't really going to come out enough ahead with Select Account to fuss around with it. However, my plan is to move to an investing HSA at some point when my account is larger and when, hopefully, a Fidelity or Vanguard starts offering them.

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Re: Alliant Credit Union no longer offering HSA's as of 11/9

Post by Pax » Sat Sep 23, 2017 4:37 pm

Soaker wrote:
Tue Sep 19, 2017 2:37 pm
....
I'm leaning toward moving to Elements Financial. To avoid the annual fee ($48), keep $2500 in the cash account at 0.5% interest. There's also a nuisance fee of $25 for a wire transfer from the bank account to TD Ameritrade, which would be once a year.
I am also looking at Elements. Do you know if there's a fee for using Ameritrade, it seems that there none and that because a balance $2, 500 is required in the HSA Savings to have the Investment Account, then there is $48/year fee?
Or maybe, I am reading it wrong. Monday, I plan to call and clarify.

Thanks for the tip!

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Re: Alliant Credit Union no longer offering HSA's as of 11/9

Post by cuda74360 » Sat Sep 23, 2017 7:53 pm

Be very careful with Optum. I also have an Optum HSA through work, and have been having major issues with their new website. That is why I was researching HSA's and how I came across the news about Alliant.

What issues have I been having? Their new website requires that every withdrawal be associated with a specific expense. So instead of 1 monthly withdrawal, which I have been doing for the past year, I have to do multiple. That's not a big deal, other than a waste of time. The main issues I had is that when I attempted to do this, they withdrew the amounts I requested 4 times from the HSA, while only sending the originally requested amounts to my checking account. It took them over a week to fix it, and then they counted the credits they issued back to me as contributions, causing the HSA to show that I had over-contributed for the year. It took another 1-1/2 weeks to get that fixed, and now I'm afraid to touch it.

curiouskitty wrote:
Fri Sep 22, 2017 1:47 am

I have an account with Optum with the fee covered by work. They offer Vanguard funds at normal expense ratios so I will transfer there. Not sure how much the monthly fee is without an employer but worth considering as the funds are good :sharebeer

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BolderBoy
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Re: Alliant Credit Union no longer offering HSA's as of 11/9

Post by BolderBoy » Sat Sep 23, 2017 10:18 pm

GuineaPig wrote:
Fri Sep 22, 2017 2:41 pm
Option 2: Provide us with a signed transfer request from the new custodian or trustee to directly transfer your HSA. The request must be submitted on the new custodian’s HSA transfer form. Please send the transfer request to: Alliant Credit Union, c/o HSA Transition, P.O Box 66945, 11545 W. Touhy Avenue, Chicago, IL 60666-0945 or fax to 773-462-8735
I am in the process of opening an HSA at First Tech credit union. Does anybody know which of the above is the easier way of doing things? Does anybody know if Alliant is going to charge me for moving to another credit union?
I'm in the process of doing a two-step transfer from Alliant to another credit union. Using Option #2 because I can get the signed request locally. Fax'd to Alliant the same day and within minutes of them receiving the fax they had withdrawn the funds and sent a check to the new CU. I received the confirmation from Alliant by USPS today. Two-steps because I have auto withdrawals that I don't want to bounce. Alliant did not charge me for this. The second, complete-withdrawal will happen this coming week so my Alliant account should be closed before month-end, saving them another monthly statement cycle.
“Where you stand, depends on where you sit” - Rufus Miles | "Never underestimate one's capacity to overestimate one's abilities"

mpsz
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Re: Alliant Credit Union no longer offering HSA's as of 11/9

Post by mpsz » Sun Sep 24, 2017 7:18 am

I've decided to go with HSA Bank and have started the process. My primary reasoning is because this is the closest I've found to getting my HSA moved to a "real" brokerage. I found SaveDaily (Alliant's investment provider) to be somewhat shady -- the site was slow or down almost all the time, data displayed was 2-3 days old, statements were already 6 weeks old when published, etc.. I never caught them doing anything wrong, but I did not get a good feeling from working with them and was surprised Alliant chose them.

I can keep 100% of my HSA at TD Ameritrade and pay a $3.00/mo - $5.50/mo fee. There's reports on this site that the $2.50 account fee is not charged if the cash account is $0 and the rest of the funds are in the investment account.

Like others, I do have the major 3 credit bureaus frozen (but not Chex), I'll post back if I have any problems opening the account.

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AAA
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Re: Alliant Credit Union no longer offering HSA's as of 11/9

Post by AAA » Tue Oct 03, 2017 7:25 pm

I'm curious why a credit bureau check would be involved if you want to deposit money somewhere i.e. no loans involved. We've had our files frozen for a few years now and I don't think it was a problem when we opened an HSA at Alliant in 2015 (although I wouldn't swear to it).

cuda74360
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Re: Alliant Credit Union no longer offering HSA's as of 11/9

Post by cuda74360 » Tue Oct 03, 2017 7:42 pm

If you open the account online, they use your credit report (soft pull) to generate questions that are supposed to verify your identity (i.e. what county did you live in 2005, what was your car payment in 1999, what lender holds your mortgage, etc.) If you have a credit freeze, then they can't pull your credit to generate the questions.

I had to unfreeze Equifax and ChexSystems in order to open my account with First Tech. Alliant told me that I would have to unfreeze Experian to open an account with them.
AAA wrote:
Tue Oct 03, 2017 7:25 pm
I'm curious why a credit bureau check would be involved if you want to deposit money somewhere i.e. no loans involved. We've had our files frozen for a few years now and I don't think it was a problem when we opened an HSA at Alliant in 2015 (although I wouldn't swear to it).

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BolderBoy
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Re: Alliant Credit Union no longer offering HSA's as of 11/9

Post by BolderBoy » Tue Oct 03, 2017 11:25 pm

cuda74360 wrote:
Tue Oct 03, 2017 7:42 pm
I had to unfreeze Equifax and ChexSystems in order to open my account with First Tech.
I just opened a First Tech account this past Saturday. They need access to Experian (not Equifax) and ChexSystems.
“Where you stand, depends on where you sit” - Rufus Miles | "Never underestimate one's capacity to overestimate one's abilities"

cuda74360
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Re: Alliant Credit Union no longer offering HSA's as of 11/9

Post by cuda74360 » Wed Oct 04, 2017 4:47 pm

That's odd. Did you apply online or in person?

I was first told by one of their phone reps that they use Experian. But when I unfroze Experian, and applied online, the KBA questions weren't presented to me and the application was cancelled. I was then told by one of their account reps that I needed to unfreeze Equifax. Once I did that I applied again, was presented with the KBA questions, and was able to open the account. This happened a week before you opened yours.

I checked my credit reports shortly afterwards, and there is a soft pull from "EQUIFAX INFO SVCS - Automated Consumer Interview System" on my Equifax report from the same day that I opened the account. I had to request my report from Experian by mail and haven't received it yet... so I don't know if there is an inquiry on it.

BolderBoy wrote:
Tue Oct 03, 2017 11:25 pm
cuda74360 wrote:
Tue Oct 03, 2017 7:42 pm
I had to unfreeze Equifax and ChexSystems in order to open my account with First Tech.
I just opened a First Tech account this past Saturday. They need access to Experian (not Equifax) and ChexSystems.
Last edited by cuda74360 on Wed Oct 04, 2017 5:56 pm, edited 1 time in total.

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BolderBoy
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Re: Alliant Credit Union no longer offering HSA's as of 11/9

Post by BolderBoy » Wed Oct 04, 2017 5:40 pm

cuda74360 wrote:
Wed Oct 04, 2017 4:47 pm
That's odd. Did you apply online or in person?
Well that is curious - wonder why the difference? I opened mine in person; took 1.5 hours for all the in-person paperwork (the rep was learning the ropes with a mentor helping). With one small glitch, which ended up pointing to a bug in their on-line banking account display, it has been smooth sailing. Got an email from a senior IT spec within an hour saying they are trying to track down / fix the bug.
“Where you stand, depends on where you sit” - Rufus Miles | "Never underestimate one's capacity to overestimate one's abilities"

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oneleaf
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Re: Alliant Credit Union no longer offering HSA's as of 11/9

Post by oneleaf » Sun Oct 08, 2017 10:38 am

Only found out about this yesterday. Rather than deal with the transfer, I made a full distribution and will ask them to close the account. I have enough medical bills to use it all for reimbursement. After 10+ years of hoping for HSA's to take off as a low-cost investment vehicle, I decided it's more trouble than it's worth.

Saving$
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Re: Alliant Credit Union no longer offering HSA's as of 11/9

Post by Saving$ » Tue Oct 10, 2017 8:04 pm

RabbMD wrote:
Tue Sep 19, 2017 7:04 pm
Rediculous... No way am I letting it move. THe question now is where to move to? I currently use two HSAs one with my investment funds at hsabank TD ameritrade. I like to have funds in a normal interest HSA account as well to deposit and withdraw yearly (I'm withdrawing old receipts from the last 5-10 years I have been saving because they are starting to fade.)

Anyone use Connexus Credit Union? From hsarates.com it looks good. $5 tp join, web interface looks fine, 2% interest rate on $15,000 + balances. Maybe a $2 monthly fee but the internets reports seem to be conflicting.
Was also researching Connexus and found this Boglehead post indicating they started charging a $2/m fee =$24/year this year, as well as $30 account closing fee.
viewtopic.php?t=215856

Also, would you be kind enough to describe how your HSA Bank TB Ameritrade account works? Do you log on via HSA Bank, or can you log on direct via TD Ameritrade? If you have other accounts at TD, can you see your HSA with that logon?

GuineaPig
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Re: Alliant Credit Union no longer offering HSA's as of 11/9

Post by GuineaPig » Fri Oct 13, 2017 9:09 am

I have managed to open my account and do the trustee-to-trustee transfer to Lively (a new provider discussed in other threads).

I had planned to do First Tech Credit Union, described above, and even opened a First Tech savings account. However, the paperwork for opening an HSA with them was very confusing and had to be done by hand, then scanned in and sent. While I procrastinated on doing the First Tech paperwork, Lively announced that they'd allow investments with TD Ameritrade for $2.50 per month, with (apparently) no other hidden fees.

For Lively, the entire signup process and trustee-to-trustee transfer process was smooth, easy, and fast. Furthermore, their support felt like it knew the business, whereas First Tech support was unreliable (sometimes good, sometimes not).

Just thought I'd share my experience. I don't plan to change HSA providers often (I would not have switched from Alliant if I hadn't been forced to), so I hope my choice works out!

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