I am going to sign up for my employer HDHP and HSA. My employer funds $1100 into my HSA automatically (their HSA provider is HealthEquity, http://healthequity.com/ed/hsalearn
At HealthEquity I have to keep the first $2000 in their cash/savings account that pays 0.05% APY. I am definitely going to open this to get the contribution, but I am thinking of opening a different HSA account through another provider. I'm hoping to get a few recommendations.
I can invest at HealthEquity with these options (http://healthequity.com/ed/resources/docs/HSA_invest.pdf
), but I get charged some serious fees ($0.33 per $1000 per month) if I want to invest in the Vanguard funds. I don't see any other fees associated with the HealthEquity account.
Wants in the second HSA account
- immediately invest the funds I deposit
- low/no costs/fees for low balance (until I build it up)
- broad investment opportunities (low fee again)
Some options I've come across are HSAbank.com or http://www.hsaadministrators.info/
(direct link from Vanguard - so you know it
HAS to be
SHOULD be legit!)
At HSAbank they charge a $2.50 monthly fee if you have less than $5000. There is also a $3.00 a month 'investment' fee, not sure if this is if you choose to have your direct deposit automatically invested (this is also waived if you have > $5000). Investing is through TDAmeritrade. Not sure what other fees there are for trading through TD platform.
HSA administrators charge an annual $45 fee (never waived). They also have a quarterly mutual fund custodial fee ($0.80 per $1000, with a max of $16) on top of the fund management fee (standard Vanguard fee).
Here is a link from Bogleheads talking about the different options. http://www.bogleheads.org/forum/viewtopic.php?t=33831
But they don't go into all the fees associated.
Any personal experience with HealthEquity, HSAbank, or HSA administrators is greatly appreciated.