Health Savings Accounts (HSA): How Do I Tell a Good One from a Bad One?

The Health Savings Account (HSA) is becoming well-known as an unbelievable tool to reduce wellness insurance premuims and yet supply good security for healthcare emergencies.

But what should consumers watch out for? Are there good HSAs and bad HSAs?

The reply is “not really.” All HSAs are made to be quite similar, by federal law. They must conform to the national standards.

However, there are some subtlies that distinguish HSAs as, not good or bad, but maybe good and better.

The first thing to inquire about an HSA is about the fees that the HSA keeper charges. Find out all the fees, including apparatus fee and annual fees. It is sensible to pay a small apparatus fee ($25 or more) but I would not anticipate an annual fee to be charged.

Your adjacent inquiry should be directed towards the investing options. Many HSAs offer only a “money market” type of account. This is really not desirable. The best option for investment your HSA money (which could go quite significant if you make not utilize it up year-after-year) is in a low-risk common fund. My suggestion is to put the HSA money in a authorities chemical chemical bond monetary monetary fund or a corporate bond fund. These finances often make more than than 5% additions in a year, but they make not endure the dramatic ups and down feathers of stock common funds.

You do not desire an HSA to be jumping up and down in value, because it might not be there when you really need it. And you never cognize when that volition be.

You might also desire to compare your comfortableness degree between a local insurance agent versus an HSA Website. For me personally, I prefer a local agent who I can speak to and see in her office. An HSA Website do me a small nervous. I probably wouldn’t put my money into an Internet bank for the same reason.

Health Savings Accounts (HSA) are here to stay, and they are going to change healthcare as we cognize it. Be portion of the future! HSAs are available today!