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Evaluating HSA Trustees (i.e., places to deposit your money)

There are literally thousands of HSA trustees including: huge banks, boutique regional banks that specialize in HSAs, and on-line banks.

Here are a few things you may want to look for:

  1. Low set up and monthly fees;
  2. A decent return on your invested money;
  3. FDIC insurance for peace of mind;
  4. A knowledgeable staff who can answer sometimes complicated and technical questions.

This last item may be the most important. You want a trustee whom you can call and easily speak with a live person who knows how HSAs work. Also, you want the trustee’s representative to be able to support his statements by showing you IRS documents either on line or by fax. Remember, you, the HSA account owner, are responsible for complying with IRS rules. Make sure you have a trustee with staff that knows their stuff.

Some HSA trustees offer no fee HSAs coupled with high interest rates. You may be giving up a knowledgeable support staff in exchange for the no fee – high return. With this type of arrangement expect to spend a lot of time and money tracking down accurate answers which other trustees who may charge more could easily answer.


Where to Search for an HSA Trustee

Recommended HSA Trustee: HSABank.com

HSAs only became available January 1, 2004 and many of the trustees got started after that date. One exception is HSABank.com which offered MSAs (the predecessor of HSAs) beginning in 1997. The benefit of having experience with medical savings accounts is that the staff is knowledgeable and able to provide accurate answers to sometimes complicated questions. BenefitsCafe.com recommends HSABank.com because we personally had MSA and HSA accounts with them from 2002 – 2012. They didn’t lose a penny of our money and if they did, they’re FDIC insured. While we are registered as insurance agents with HSABank.com we don’t receive compensation from them.  Interest rates are extremely low and HSA Bank has increased their fees.  Here is a link to their online application by clicking here.