How can I find/compare custodians for my HSA in the United States?

Question

I have a high-deductible health plan that qualifies me to open an HSA (Health Savings Account). Where are good places to find an HSA in the US? What sorts of features should I look for? What extra fees should I look out for?

Answer 1

In general, things to look for are:

1. How high is is the account's rate of return?
2. How easy is it to access your money?

Things to look out for:

1. Minimum monthly amounts to put into checking accounts, or you'll be dinged with a monthly fee
2. Large expense ratios in "mutual funds" you invest into, or $5+ dollar expenses when investing in mutual funds.

I'd recommend two places:

1. Find a high interest HSA savings account. For example, Stanford Federal Credit Union currently offers 1.5% to members without direct deposit, 2.5% to members with $500 direct deposit in a checking account. EDIT: SFCU has dropped their rates substantially and is not a recommended bank for this purpose.
2. For longer term investments, consider Health Savings Administrators which have Vanguard Admiral funds. Realize this is a bit more risky if you're depositing/withdrawing money often, but it can pay off assuming the stock/bond market has a higher rate of return. This is, however, risky, as many people mention that you should not plan on having "growth" in a mutual fund like this unless you keep and hold money there for 3 or more years. Additionally, the customer service of Fulton Bank is awesome.

I'd recommend reading up on HSA's in this related question here.

Answer 2

The account I have found that works best as a HSA is Alliant Credit Union. They have fee-free HSA (no fees for almost all types of transactions or monthly fees) and a fairly decent online banking website. I've been with them for about 5 years now without trouble.

FYI - They are a credit union not a bank so you do have to make a small $10 donation to one of their charities to become "eligible" for opening the account.