Best HSA account as of June 2019?

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vu8
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Best HSA account as of June 2019?

Post by vu8 » Wed Jun 12, 2019 4:38 pm

Good day, I'm about to get a high deductible health plan. What are some of the absolute best HSA plans as of today?

Criteria:

1 Absolutely no fees, no monthly fees, no annual fees, no low balance fees
2 Access of Vanguard funds or ETFs, WITHOUT any trading commissions
3 Does not require any minimum balance in Cash (I'm pointing at you, Health Equity)

fabdog
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Re: Best HSA account as of June 2019?

Post by fabdog » Wed Jun 12, 2019 4:59 pm

There have been a number of posts on this topic, you can use the search box...

I'm not sure there is one that hits all 3 of your criteria, but you can certainly do far worse than Fidelity, it hits 2 of your 3 criteria and with a slight modification hits all your criteria

No fees
No min balances, no mins in cash
Access to Fidelity funds and a selection of no trading fee ETF's which would most likely be quite satisfactory

Mike

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vu8
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Re: Best HSA account as of June 2019?

Post by vu8 » Wed Jun 12, 2019 5:51 pm

fabdog wrote:
Wed Jun 12, 2019 4:59 pm
There have been a number of posts on this topic, you can use the search box...

I'm not sure there is one that hits all 3 of your criteria, but you can certainly do far worse than Fidelity, it hits 2 of your 3 criteria and with a slight modification hits all your criteria

No fees
No min balances, no mins in cash
Access to Fidelity funds and a selection of no trading fee ETF's which would most likely be quite satisfactory

Mike
The reason I had to make a new post is precisely because I can’t find one that ticks all three boxes. But someone somewhere must know the answer. I’m not a big fidelity fan... much rather buy vanguard ETFs if vanguard funds aren’t available

Ned Nederlander
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Re: Best HSA account as of June 2019?

Post by Ned Nederlander » Wed Jun 12, 2019 6:03 pm

I like Lively. I signed up recently. No minimums needed in cash and no fees. They use TD. You have access to many commission free etfs unfortunately for me VTI and BND aren’t amongst them. I paid $7 each but only plan on investing once a year.

nimo956
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Re: Best HSA account as of June 2019?

Post by nimo956 » Wed Jun 12, 2019 6:05 pm

Fidelity fits your needs. No fees and they now have zero ER index funds.
50% VTI / 50% VXUS

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whodidntante
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Re: Best HSA account as of June 2019?

Post by whodidntante » Wed Jun 12, 2019 6:07 pm

Fidelity.

If you don't like that, consider fidelity.

mervinj7
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Re: Best HSA account as of June 2019?

Post by mervinj7 » Wed Jun 12, 2019 6:10 pm

vu8 wrote:
Wed Jun 12, 2019 5:51 pm
The reason I had to make a new post is precisely because I can’t find one that ticks all three boxes. But someone somewhere must know the answer. I’m not a big fidelity fan... much rather buy vanguard ETFs if vanguard funds aren’t available
If you don't want to use Fidelity index funds for whatever reason, you can also use iShares ETFs commission-free in a Fidelity HSA. If you really want to use Vanguard ETFs for whatever reason, then you can still purchase them and pay a $4.95 trading fee. Since many folks will only hold one fund in their HSA, it's not bad for once a year purchases.

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vu8
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Re: Best HSA account as of June 2019?

Post by vu8 » Wed Jun 12, 2019 7:23 pm

mervinj7 wrote:
Wed Jun 12, 2019 6:10 pm
If you don't want to use Fidelity index funds for whatever reason, you can also use iShares ETFs commission-free in a Fidelity HSA. If you really want to use Vanguard ETFs for whatever reason, then you can still purchase them and pay a $4.95 trading fee. Since many folks will only hold one fund in their HSA, it's not bad for once a year purchases.
Yeah I think you're 100% correct, I probably should just pick Fidelity, considering the fact that they don't charge those pesky monthly fees, and they do not have a minimum cash amount in the account. I guess I just have to buy the Fidelity index funds which is actually perfectly fine... I just have always been reluctant to open an account with Fidelity since they have fought so hard against index funds in the past couple of decades... But it is also super impressive that Fidelity charges even less to trade ETFs than TD Ameritrade which is the brokerage offered by Lively.

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Wiggums
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Re: Best HSA account as of June 2019?

Post by Wiggums » Wed Jun 12, 2019 7:31 pm

vu8 wrote:
Wed Jun 12, 2019 7:23 pm
mervinj7 wrote:
Wed Jun 12, 2019 6:10 pm
If you don't want to use Fidelity index funds for whatever reason, you can also use iShares ETFs commission-free in a Fidelity HSA. If you really want to use Vanguard ETFs for whatever reason, then you can still purchase them and pay a $4.95 trading fee. Since many folks will only hold one fund in their HSA, it's not bad for once a year purchases.
Yeah I think you're 100% correct, I probably should just pick Fidelity, considering the fact that they don't charge those pesky monthly fees, and they do not have a minimum cash amount in the account. I guess I just have to buy the Fidelity index funds which is actually perfectly fine... I just have always been reluctant to open an account with Fidelity since they have fought so hard against index funds in the past couple of decades... But it is also super impressive that Fidelity charges even less to trade ETFs than TD Ameritrade which is the brokerage offered by Lively.
I agree. It’s a pretty good solution...

TropikThunder
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Re: Best HSA account as of June 2019?

Post by TropikThunder » Wed Jun 12, 2019 8:07 pm

vu8 wrote:
Wed Jun 12, 2019 5:51 pm
The reason I had to make a new post is precisely because I can’t find one that ticks all three boxes. But someone somewhere must know the answer. I’m not a big fidelity fan... much rather buy vanguard ETFs if vanguard funds aren’t available
There aren't any (current) HSA's that will tick all three boxes until Vanguard starts their own. All of the ones that give access to Vanguard funds either have wrap fees and/or non-investable hold-backs (like Health Equity) or commissions (like the Lively-TDA brokerage link and Fido). Fido and Lively are the two best options (in my opinion) since both are fee-free, allow first-dollar investing, and have plenty of commission-free choices. The only difference is Lively uses the TDA brokerage and Fido uses their own.

I am currently using Lively, but if I had it to do over from scratch I would probably choose Fido since it takes one fewer step to invest (with Lively, you have to wait for the deposit or transfer to post and then move it to TDA to invest). Lively customer service is great though, they have a minimalist aesthetic and let simple things be simple so I'm not motivated to move.

Spirit Rider
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Re: Best HSA account as of June 2019?

Post by Spirit Rider » Wed Jun 12, 2019 9:29 pm

vu8 wrote:
Wed Jun 12, 2019 7:23 pm
I just have always been reluctant to open an account with Fidelity since they have fought so hard against index funds in the past couple of decades.
I don't know where you came up with that misinformation, it is 100% totally false. Fidelity has been actively promoting and have been competitive with expense ratios with Vanguard index funds for more than 20 years. Fidelity has actually had lower ERs than Vanguard for most index funds over the last decade.

Vanguard has always had and still has a much broader selection of index funds for different asset classes. Fidelity has a lot of actively managed mutual funds with higher ERs than Vanguard, but still lower than the industry average.

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willthrill81
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Re: Best HSA account as of June 2019?

Post by willthrill81 » Wed Jun 12, 2019 9:31 pm

Our HSA is with Health Equity because that's who my employer selected. We've got about $14k in the account now, and their .4% admin fee is starting to get on my nerves. I should probably look into moving those funds to Fidelity this summer.
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings

mpsz
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Re: Best HSA account as of June 2019?

Post by mpsz » Wed Jun 12, 2019 10:21 pm

I finally got my HSA moved over to Fidelity a few days ago.

I feel like this account is "home" now and I can finally stop worrying about this account. I've been through a nightmare of probably 6-8 different custodians... 4 of them via my same employer in 3 years (!!!), then I opened my own HSA at Alliant who sold their business to HealthEquity a few weeks later... then went to HSA Bank where I had to file a CFPB complaint because of their negligence, then Lively who was great, now I'm finally at Fidelity because I have other accounts here.

The Fidelity HSA is just a regular brokerage account. Like how they handle IRAs. No fussing with a cash account and taking multiple days to transfer to a totally different institution, or having required cash balances. No unwanted debit card. One monthly statement vs separate cash and investment statements. FDIC insurance. No small likely unprofitable startup (Lively) who will likely some day get acquired by a hostile party (HealthEquity, Optum...).

H-Town
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Re: Best HSA account as of June 2019?

Post by H-Town » Thu Jun 13, 2019 10:01 am

whodidntante wrote:
Wed Jun 12, 2019 6:07 pm
Fidelity.

If you don't like that, consider fidelity.
This.

End thread.

mervinj7
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Re: Best HSA account as of June 2019?

Post by mervinj7 » Thu Jun 13, 2019 10:27 am

vu8 wrote:
Wed Jun 12, 2019 7:23 pm
Yeah I think you're 100% correct, I probably should just pick Fidelity, considering the fact that they don't charge those pesky monthly fees, and they do not have a minimum cash amount in the account. I guess I just have to buy the Fidelity index funds which is actually perfectly fine... I just have always been reluctant to open an account with Fidelity since they have fought so hard against index funds in the past couple of decades... But it is also super impressive that Fidelity charges even less to trade ETFs than TD Ameritrade which is the brokerage offered by Lively.
The first index fund I ever bought was Vanguard's S&P 500 in 2004 (first started in 1976). The second fund I bought was Fidelity's S&P 500 in 2005 (started in 1988). First forward to today, now Fidelity's S&P 500 has a premium institutional share class (formerly needed a minimum of $100m) available to all with zero minimums with an ER of 0.015% (vs. VFIAX's 0.04%). Since Fidelity's announcement on zero minimum share classes with ultra-low ERs, Vanguard has reduced the minimums on Admiral Share Class from $10k to $3k.

Competition between these two juggernauts has been fierce over the last couple of decades and it's only been good news for most indexers.

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