HSA Fees and Investment Options
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HSA Fees and Investment Options
Custodians and trustees can set administrative fees and other requirements for HSA accounts. These include things like minimum deposit requirements, minimum balance requirements, account set-up fees, account maintenance fees, etc. A survey of HSA custodians and trustees indicated the following ranges for HSA account fees:
Things To Know
- Custodians and trustees can set various fees on your account.
- Most custodians and trustees pay interest on your account funds.
- You may have more than one HSA at different financial institutions.
- Account setup fees: $0–$50
- Monthly maintenance fees: $0–$10
- Transaction fees: $0–$5
- Account closing fees: $0–$30
You should consider these costs when deciding where to open your HSA account(s). However, the fees can be paid tax-free with your HSA account funds. You may also pay the fees separately to maintain a higher account balance.
You can earn money on your account
Most custodians and trustees pay interest on your account funds, just like they do for savings and checking accounts. Interest rates for HSAs vary with the general interest rate environment. Nationally, HSAs pay rates close to rates paid for certificates of deposit (CDs) but rates may vary from institution to institution based on their individual products and policies. Generally, higher interest rates are offered for larger account balances.
You can invest your HSA
Your HSA account custodian/trustee may also offer investment options for your HSA funds. This may be an important consideration as your account balance grows over time. Your funds can be invested in the same types of investments permitted for individual retirement accounts (IRAs), including stocks, bonds, mutual funds, CDs, etc. However, each institution can decide how many and what types of investment options it offers.
You may have more than one HSA
You may open and maintain more than one HSA account at different financial institutions. You may deposit as much as you wish into each account as long as your total contributions to all the accounts combined does not exceed the limits for the calendar year. However, because each account custodian/trustee may charge fees, etc., it may not be wise to open too many HSA accounts.
Buyer’s Guide
Be sure to shop around for banks or credit unions that offer you good value for your HSA account funds. Some charge high fees that may offset the growth you realize through interest payments or investments. Open your HSA account before your coverage begins, or as soon as possible after it starts. Doing so will ensure that you have your account opened on the first day of your HSA-qualified insurance coverage, which for many people begins on a holiday (January 1). That will guarantee that any expenses you might incur on January 1 (or later) will be eligible for reimbursement from the account.