HSA, if I just want a savings account

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jeffyscott
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HSA, if I just want a savings account

Post by jeffyscott » Wed Oct 04, 2017 12:38 pm

Does anyone have a suggestion for an HSA savings account for balance of $15,000-20,000?

My credit union offers an HSA that currently pays 0.76% and has no fees other than a one time cost of $25 to create it, no fee to close it. This would be convenient and in looking at other options, I am not seeing anything that appears to be a whole lot better, if I just want a cash account without fees. But thought I'd check to be sure I am not missing something.

I don't think I want to bother with an investment account for this. We use the money to pay expenses as we go, just using the account for tax savings purposes. I am retired and will add to the HSA by withdrawing from tax deferred retirement accounts and then deducting the contributions. This effectively transfers money. without any tax being paid and then I will pay no taxes when I use the money for medical and dental expenses.
press on, regardless - John C. Bogle

coldday
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Re: HSA, if I just want a savings account

Post by coldday » Wed Oct 04, 2017 12:50 pm

Sounds like a plan to me, with two caveats that I'm sure you are aware of but worth a mention: You have to be covered by an HSA-qualified HDHP (not all HDHPs are qualifying) and your $15,000+ balance will take a few years to accrue as you will be limited by the IRS maximum contribution per year. And of course you cannot contribute once Medicare starts.

It's well worthwhile to be able to pay your out of pocket medical expenses with never-taxed dollars.

Spirit Rider
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Re: HSA, if I just want a savings account

Post by Spirit Rider » Wed Oct 04, 2017 1:09 pm

jeffyscott wrote:
Wed Oct 04, 2017 12:38 pm
My credit union offers an HSA that currently pays 0.76% and has no fees other than a one time cost of $25 to create it, no fee to close it.
Are you sure that this is actually a fee for the HSA account. Most credit unions operate by requiring an opening deposit, usually $25. This $25 is your "share" of the credit union and is not available for withdrawal. This establishes that you are a member and can open any of the CU accounts and avail yourself of any of their other services such as loans. This is usually returned to you when you close your account and if in an interest bearing account earns interest with the rest of that account's balance.

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jeffyscott
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Re: HSA, if I just want a savings account

Post by jeffyscott » Wed Oct 04, 2017 1:18 pm

They refer to it as a set up fee, so I think it is actually a fee.

To clarify, my current balance is $15,000. Had HSA with employer for 3 years. As a retiree, I'd be moving that as I am not happy with their fees or service.
press on, regardless - John C. Bogle

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BolderBoy
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Re: HSA, if I just want a savings account

Post by BolderBoy » Wed Oct 04, 2017 1:37 pm

jeffyscott wrote:
Wed Oct 04, 2017 12:38 pm
Does anyone have a suggestion for an HSA savings account for balance of $15,000-20,000?
First Tech FCU, no fees of any sort, 1% interest, currently having a tiered bonus program which would net you an additional $200 (details on website), $5 membership fee, any-one can sign up on-line.
“Where you stand, depends on where you sit” - Rufus Miles | "Never underestimate one's capacity to overestimate one's abilities"

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jeffyscott
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Re: HSA, if I just want a savings account

Post by jeffyscott » Wed Oct 04, 2017 10:45 pm

For a $200 bonus, it seems worth the reduction in convenience vs. my current credit union.

Especially with fees includes none for opening or closing.
press on, regardless - John C. Bogle

dgt
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Re: HSA, if I just want a savings account

Post by dgt » Thu Oct 05, 2017 8:01 am

Connexus Credit Union offers 2% for 15K$+ in an HSA.
A 5$ donation to join the credit union. 5$ to open a companion savings account.
They do, or will soon, charge $2/month - but still pretty good.

https://www.connexuscu.org/accounts/hsas/

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