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best bank as trustee for HSA?


Guest sanchanim
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Guest sanchanim

Please give me suggestions for the best bank to use for HSA accounts?

I am thinking of my credit union; no fees to open the account, I think. But I would like to get some more recommendations from your experiences

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Guest allancoleman

Just completed a institute - to - institute transfer of our two HSA accounts with JPMorgan Chase where we had difficulties in the past to our local credit union . It only took a few weeks . Look forward to dealing with our local credit union with no fees in the future for balances over $50 with our HSAs . :)

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That post wasn't particularly useful, as it doesn't even identify the state. Credit unions and the laws that govern them vary widely from state to state. Some are limited to employees of a single corporation. Others are open to individuals in a specific community. So there may be states in which many of the credit unions could handle such accounts as well as other states in which no credit unions would be available for such an account.

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Guest sanchanim
That post wasn't particularly useful, as it doesn't even identify the state. Credit unions and the laws that govern them vary widely from state to state. Some are limited to employees of a single corporation. Others are open to individuals in a specific community. So there may be states in which many of the credit unions could handle such accounts as well as other states in which no credit unions would be available for such an account.

the OP is in Texas, now can you answer please?

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My response was to the post by allancoleman, not to you. I have spent the past several months looking for a good HSA trustee or custodian. In my searches I ran across HSA Bank, a subsidiary of Webster Bank, NA HSA Bank. They appear to specialize in HSAs and say the right thing on their website.

It appeared suspicious to me that Webster's website makes no mention of HSA Bank. I therefore contacted the Wisconsin Department of Financial Institutions to make sure they were appropriately licensed (they're not listed on the DFI website as a licensed bank). They informed me that as a "national association" bank, Webster is not regulated by state banking regulators (but by the Feds), and that they were indeed a legitimate banking institution in Wisconsin.

They may be worth a call.

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Guest sanchanim

thanks webaguru, for the clarification.

i short listed two banks: optum (only an online presence) and american chartered (online as well as brick-and-mortar banking locations in chicago-land). i did not like bankofamerica because of a highly monthly maintenance fee and a somewhat unfriendly tone of their phone CSRs, plus some reports of identity leaks at BoA.

Optum is probably the biggest HSA trustee bank, it seems in USA today. it was called exante before. there are some underlying fees to open and maintain an account, if the balance falls below 500 dollars. Optum is affiliated with United Health, I think. although I do not see any benefit of my HSA trustee bank being linked with any insurance carrier (HSAs are portable, and Optum anyway does not offer a auto-pay link through the claim processor). i can use any hsa trustee bank with any insurance carrier. Lasty, all my phone calls were answered at a call center so no personalized dedicated banker to talk to .

American Chartered seems to have no fee whatsoever, and they have bankers who answer the phone, not a call center. you can talk to the same person every time you call. i liked that about them. they seemed very friendly. they have other regular bank businesses apart from HSA accounts. i talked to their head of their HSA division, and he is a wealth of info on health insurance in general.

so, as of now, i am going with american chartered. i live in texas, so i will be using the online banking feature.

i believe both optum and american chartered are FDIC insured, but please recheck

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