You just enrolled in a Health Savings Account qualified
Health Insurance Plan and now you need to choose a bank. How do you know
what bank has the best Health
Savings Account (H.S.A.) for you and your family?
There are a lot of options on H.S.A. accounts from national
banks like H.S.A. Bank and Fidelity Investments to local banks in Oklahoma
including Quail Creek Bank and Thoroughbred Bank. I have recently found First American Bank
out of Illinois that has no fees on a basic H.S.A. or you upgrade to the HSA
Plus for $4.95 per month. I have not found any other no fee H.S.A. accounts, but I have found a lot of options in the $4.95
per month range.
When selecting a bank you will want to look at interest
rates, fees and services like you would compare any bank. Plus you will want to look at there investment
opportunities for long-term growth. Keep in mind
you might be setting aside a couple of thousand dollars to pay for medical
expenses as they come up to meet your deductible but any of the money you save
that you don’t spend for medical expenses you keep. Once you fully fund your deductible, you can
continue setting money aside tax-advantaged money for your annual deductible. Since the H.S.A. monies you save are yours and
they roll over from year to year they can add up pretty quick.
2018 you have a $2400 annual deductible and you set aside $200 per month in your
H.S.A. You only go to the doctor two
times this year at $90 per visit (cash discount). You set aside $2400 and you only spent $180, so
you start 2019 off with $2220 in your account.
If you keep putting $200 per month in your H.S.A. account at the end of 2019,
you will have $4620 in your account and only have a $2400 deductible. If you choose a bank account that has investment
options, you can move some of the money into investments with better returns
than checking account or savings account.
Once you have built up more money than what
you may need to meet your deductible you can move the additional money into a tax-qualified
mutual fund or other investment vehicles.
You will want to choose a Bank that offers you investments options above
that of a basic savings or checking account.
One source we found helpful in comparing H.S.A. bank
accounts is depositaccounts.com they have 66 banks listed in the order form the highest interest rates to the lowest
rates. The website also gives you the ability
to sort the rates based on how much money you think you will have in the account.