![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png){kind=small}
I got one of those time-sucking things in the mail today: a letter of resignation from my HSA custodian.
The background
Back when I was underemployed for two years, I got an HSA-qualified health insurance plan and gleefully maxed out my new HSA plan for as long as I could. I found Alliant Credit Union for my custodian and I liked that there were no fees and the interest rate was good, like an online bank, not like a regular bank.
Eventually, I noticed that their savings account interest rate exceeded that of my online savings account at ING Direct/Capitol360, so I started putting my savings there. Later in an attempt to simplify and move from banks to credit unions, I closed my other online savings account and moved everything to Alliant. And I closed my two rewards credit cards and got a new one from Alliant. I still love that place, but they are moving everyone's HSAs to HealthEquity. The letter doesn't say why, but a press release explains:
"We recognize that HSAs are growing rapidly, and soon even more robust technology and significant dedicated resources will be needed to keep up with increasingly more stringent compliance requirements," said Dave Mooney, President and CEO of Alliant. "That's why we have partnered with HealthEquity. We want our members and employees to have access to a best-in-class HSA platform that will provide superior service and an easy, convenient way to manage their HSA funds."
The press release also says that like Alliant, HealthEquity is top-rated HSA provider and it is the nation's largest health savings account non-bank custodian.
The research
Well, first I had to look up how much I have in my account, because most places have tiered interest rates, and I can't contribute more, so I'm stuck with what I have now (plus future interest). I have just over $6K.
Alliant has no fees and pays 0.68% APY, so I'm hoping for something better.
I checked out HealthEquity. It pays 0.1% interest at my tier.
In the interest of maintaining my newfound simplification, I then checked whether some place I already have an account with provides HSAs. I already knew UFCU and Vanguard don't. I see no evidence that Scottrade does, either. They were bought by Ameritrade, but Ameritrade's HSA page references HSA Bank, a different organization. (And I expect Ameritrade to change my account in some way that will encourage me to transfer it to Vanguard anyway.)
Then I looked for other recommended HSA providers. They all were also worse than Alliant except for United Bank of Michigan, which seems to cater to locals only. It reminded me of that time I eliminated every career I could imagine and had to start over with lower standards. And also of that time I almost eliminated every grocery store near me and had to give them all another chance. So the best of these is Elements Financial with no fees and 0.5% interest at my $6K level. (You get 1.0% for $10K+.) Just a little worse than Alliant, but workable.
So then I looked up places local to me (both banks and credit unions) in case there was a cool one like in Michigan. Most didn't have HSAs and those that did had monthly fees and/or amazingly low interest rates. (Seriously, one place bragged about how they paid out interest every month even though it was only 0.01%.) But then I got all excited about Capitol Credit Union which pays 0.75% APY. Only it turns out to be Capital (with an a) Credit Union (thanks Google, for changing what I typed), local to Michigan; Capitol (with an o), local to Austin, doesn't have HSAs. Then I got excited by Farmers Insurance Group Federal Credit Union, which pays 0.6%, but I don't qualify for membership.
The Decision
And so that brings me back to Elements.
But how much does it really help me to get to have lifetime tax-free interest when I'm only getting 0.5% interest? I could roll it into regular savings (assuming I've spent--and can document--over $6K in applicable medical expenditures since I opened this account, which I think I have). That account earns 1.104% (which after taxes at my marginal tax rate of 15% would leave me with "only" 0.94% interest). And it would simplify my finances, too. I already got the benefit of pre-tax contributions. So given today's data, the choice easy. But in the future, these numbers (including my tax rate) are likely to change, and could change drastically. So I've been leaving it in to hedge my bets.
Well, that research took over two hours, and now there's still the decision process and, since I know I am not going to decide to let my account automatically roll over to the new company, I will then get to spend more time taking action.
The background
Back when I was underemployed for two years, I got an HSA-qualified health insurance plan and gleefully maxed out my new HSA plan for as long as I could. I found Alliant Credit Union for my custodian and I liked that there were no fees and the interest rate was good, like an online bank, not like a regular bank.
Eventually, I noticed that their savings account interest rate exceeded that of my online savings account at ING Direct/Capitol360, so I started putting my savings there. Later in an attempt to simplify and move from banks to credit unions, I closed my other online savings account and moved everything to Alliant. And I closed my two rewards credit cards and got a new one from Alliant. I still love that place, but they are moving everyone's HSAs to HealthEquity. The letter doesn't say why, but a press release explains:
"We recognize that HSAs are growing rapidly, and soon even more robust technology and significant dedicated resources will be needed to keep up with increasingly more stringent compliance requirements," said Dave Mooney, President and CEO of Alliant. "That's why we have partnered with HealthEquity. We want our members and employees to have access to a best-in-class HSA platform that will provide superior service and an easy, convenient way to manage their HSA funds."
The press release also says that like Alliant, HealthEquity is top-rated HSA provider and it is the nation's largest health savings account non-bank custodian.
The research
Well, first I had to look up how much I have in my account, because most places have tiered interest rates, and I can't contribute more, so I'm stuck with what I have now (plus future interest). I have just over $6K.
Alliant has no fees and pays 0.68% APY, so I'm hoping for something better.
I checked out HealthEquity. It pays 0.1% interest at my tier.
In the interest of maintaining my newfound simplification, I then checked whether some place I already have an account with provides HSAs. I already knew UFCU and Vanguard don't. I see no evidence that Scottrade does, either. They were bought by Ameritrade, but Ameritrade's HSA page references HSA Bank, a different organization. (And I expect Ameritrade to change my account in some way that will encourage me to transfer it to Vanguard anyway.)
Then I looked for other recommended HSA providers. They all were also worse than Alliant except for United Bank of Michigan, which seems to cater to locals only. It reminded me of that time I eliminated every career I could imagine and had to start over with lower standards. And also of that time I almost eliminated every grocery store near me and had to give them all another chance. So the best of these is Elements Financial with no fees and 0.5% interest at my $6K level. (You get 1.0% for $10K+.) Just a little worse than Alliant, but workable.
So then I looked up places local to me (both banks and credit unions) in case there was a cool one like in Michigan. Most didn't have HSAs and those that did had monthly fees and/or amazingly low interest rates. (Seriously, one place bragged about how they paid out interest every month even though it was only 0.01%.) But then I got all excited about Capitol Credit Union which pays 0.75% APY. Only it turns out to be Capital (with an a) Credit Union (thanks Google, for changing what I typed), local to Michigan; Capitol (with an o), local to Austin, doesn't have HSAs. Then I got excited by Farmers Insurance Group Federal Credit Union, which pays 0.6%, but I don't qualify for membership.
The Decision
And so that brings me back to Elements.
But how much does it really help me to get to have lifetime tax-free interest when I'm only getting 0.5% interest? I could roll it into regular savings (assuming I've spent--and can document--over $6K in applicable medical expenditures since I opened this account, which I think I have). That account earns 1.104% (which after taxes at my marginal tax rate of 15% would leave me with "only" 0.94% interest). And it would simplify my finances, too. I already got the benefit of pre-tax contributions. So given today's data, the choice easy. But in the future, these numbers (including my tax rate) are likely to change, and could change drastically. So I've been leaving it in to hedge my bets.
Well, that research took over two hours, and now there's still the decision process and, since I know I am not going to decide to let my account automatically roll over to the new company, I will then get to spend more time taking action.