Best HSA for Investing (Revisited)

by Michael on Feb 3, 2014 · 1 comment

Photo of Stethoscope on Hundred Dollar Bills

This is just a quick followup to my earlier post about the best HSA for investing. At that time, HSA Bank looked like the best option.

But now? Well, my pal Harry recently pointed out that Eli Lilly Federal Credit Union is an excellent option for those who are interested in investing their HSA money.

So… Yes, it’s a credit union, but anyone can join. If you don’t meet their normal membership criteria, you can get your foot in the door by making a one-time, $5 donation to a financial literacy non-profit called Tru Direction.

Once you qualify, you can open an HSA with no set up or account maintenance fees. And once your balance hits $2,500, you can invest (for free) via the TD Ameritrade trading platform. This is the same as with HSA Bank but without having to leave $5k uninvested or pay $66 in yearly fees.

As for investment options, TD Ameritrade offers over 100 commission-free ETFs, including 32 Vanguard funds and 47 iShares funds. In other words, there are more than enough options to put together a respectable portfolio.

All in all, this is a great deal and definitely worth considering if you’re planning on investing your HSA money. I’m tempted to make the move.

P.S. Yes, you can choose your own HSA provider. There’s no need to stick with your employer’s preferred provider unless you really want to.

1 Money Beagle February 5, 2014 at 12:03 pm

Last year when I was contributing to an HSA, I looked into types that would allow you to invest, but being that I was just starting off, it didn’t seem worthwhile as it would take a while to build a balance that would allow for investing to cover brokerage fees and the like. I ended up with one from my credit union that pays a very slight interest rate, but there are no fees and I figure it’s better than nothing.

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