OK - I have a long dormant HSA with one year of contributions in it that is fully invested. It has been dormant for the past 8 years. The good news is that the ~ $5000 or so invested has accumulated to over $12,000. The bad news is that they (OptumBank) has a couple of account fees that mildly annoy me. They are small, but I wondered if there is a fee-free alternative I can roll the funds to?

The two fees are: $2.50 investment fee, and a $3.00 Maintenance Fee (only waived if you keep more than $5000 in cash (which defeats the whole purpose of the HSA, in my mind). Once again, I've done fine overall, but it's the principle of the thing - I have no other bank or investment accounts that have any type of ongoing maintenance fees.

Obviously, this isn't a huge concern of mine, so just checking out of curiosity more than anything else. Anyone know of a completely fee-free HSA financial institution?

Thanks! No - that's really the crux of my issue. I am not contributing more (and don't plan to). I just don't want to get nickeled and dimed on the dormant account. I probably won't use these funds for a while (maybe a decade or two), unless it looks like it will just get slowly eaten away. In that case, I should probably just spend it on health-related stuff now.

I keep mine at HSA Bank - if you keep a $5,000 cash balance you avoid all fees. The remainder is invested through TD Ameritrade (basically a sub account). Through TDA I'm able to buy no-fee vanguard index ETF's such as VTI.

Avoid UMB Bank - had a decently bad experience with them.

RockOn said:

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I keep mine at HSA Bank - if you keep a $5,000 cash balance you avoid all fees. The remainder is invested through TD Ameritrade (basically a sub account). Through TDA I'm able to buy no-fee vanguard index ETF's such as VTI.

Avoid UMB Bank - had a decently bad experience with them.

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Yeah, RockOn - that is the same arrangement as OptumBank, for waiving of the $3.00 monthly account fee. With a total balance of $12,000, I'm definitely not wanting to keep $5000 of it in cash. However, the $2.50 investment fee per month is there no matter what.

I realize this is small potatoes, but I'm just curious if there are better HSA accounts to rollover to, if I get questions from others (I have in the past).

I have an account with HSA Bank & only have to keep 1k in cash to avoid fees.

Fidelity HSA --- 0 fees --- also you can invest 100% of your HSA


my work uses connectyourcare HSA -- so once a year (july-ish) i rollover my 6+k to fidelity

in fidelity you can invest in whatever you want -- i do weekly options trading

OasisMan said:

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Fidelity HSA --- 0 fees --- also you can invest 100% of your HSA


my work uses connectyourcare HSA -- so once a year (july-ish) i rollover my 6+k to fidelity

in fidelity you can invest in whatever you want -- i do weekly options trading

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I'll check it out - THANKS!

So did it grow from $5k to $12k without any contributions? If so, over what period?

bam02 said:

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So did it grow from $5k to $12k without any contributions? If so, over what period?

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Yes. One year of contributions, 8-9 years ago, mostly aggressive fund options. About on a par with market performance. The $66/year fees aren't really harming the returns, they just annoy me.

I do kind of like the transfer to Fidelity alternative. Schwab doesn't offer them, sadly.

I bleed maroon said:

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OasisMan said:

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Fidelity HSA --- 0 fees --- also you can invest 100% of your HSA

my work uses connectyourcare HSA -- so once a year (july-ish) i rollover my 6+k to fidelity

in fidelity you can invest in whatever you want -- i do weekly options trading

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I'll check it out - THANKS!

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Thanks, I finally have an HSA balance worth investing. This looks like a good option.

My work HSA just changed from Health Equity to Optum.

Check out lively

2nd vote for Lively. Pretty painless, and you can invest the 1st dollar at Schwab, who they are affiliated with.

No problems to date.

I used HealthSavings.com in the past. Good news is I believe I was 100% invested but bad news is I think the fees were higher than what you currently have. Granted some of that could be balance driven, regardless... it was annoying me too so was going to switch.

I have switched employers and am enrolled in the HDHP there so I transferred the entire balance. We're at Merrill Lynch/Bank of America [HSA + 401k]. Fees appear reasonable/lower but that could be because its employer sponsored. There is a $1,000 cash balance requirement though which is frustrating. I'm staying there for ease of having HSA & 401K together with one login and employer contributes $1K to the HSA.

I have not looked into Fidelity but that sounds like a winner based on the above posts.


*Note - the Health Savings Account is just such a fantastic longterm investment tool. Automatic 7.65% return for me by avoiding FICA taxes plus income tax deductible plus tax-free growth and distributions (with health receipts). EFFFF YES

bmks270 said:

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I bleed maroon said:

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OasisMan said:

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Fidelity HSA --- 0 fees --- also you can invest 100% of your HSA

my work uses connectyourcare HSA -- so once a year (july-ish) i rollover my 6+k to fidelity

in fidelity you can invest in whatever you want -- i do weekly options trading

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I'll check it out - THANKS!

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Thanks, I finally have an HSA balance worth investing. This looks like a good option.

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This is great news. I also have OptumBank for my HSA but it's now finished since I quit my job. Everything else at Fidelity so will look into this.

My employer uses Optum Bank as well. The investing options/fees are **** just as you layed out.

I bleed maroon said:

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OK - I have a long dormant HSA with one year of contributions in it that is fully invested. It has been dormant for the past 8 years. The good news is that the ~ $5000 or so invested has accumulated to over $12,000. The bad news is that they (OptumBank) has a couple of account fees that mildly annoy me. They are small, but I wondered if there is a fee-free alternative I can roll the funds to?

The two fees are: $2.50 investment fee, and a $3.00 Maintenance Fee (only waived if you keep more than $5000 in cash (which defeats the whole purpose of the HSA, in my mind). Once again, I've done fine overall, but it's the principle of the thing - I have no other bank or investment accounts that have any type of ongoing maintenance fees.

Obviously, this isn't a huge concern of mine, so just checking out of curiosity more than anything else. Anyone know of a completely fee-free HSA financial institution?

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I just completed the Transfer request on Fidelity to move my Optum assets to a new Fidelity HSA account. Did it all online in about 5 minutes. Really easy. They open your new HSA account as part of the guided process.

Optum assets expected to be at Fidelity by 02/04/21.

Nice. Did you just pay the $20 transfer fee and go on?

TwoMarksHand said:

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Nice. Did you just pay the $20 transfer fee and go on?

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My understand is there is no transfer fee but maybe I missed that. Once it's transferred I do know there are no fees.

Question - Wife's company switched HSA providers at the beginning of the year from HSA Bank/TDA to another provider. She is still enrolled in a HDHP and contributing via payroll deductions to the new provider.

Her existing balance is still with HSA Bank/TDA. Her HR has only provided the options to keep it with HSA and pay a monthly fee or roll it into the new plan and pay a monthly fee.

Is she able to move it to any provider (like Fidelity) or does she have to combine it with the new provider?