Content starts here
CLOSE ×
Search
Reply
Regular Contributor

health savings account

I opened a Health Savings Account last year at my bank.  I tried to open a CD this year, but was told that was not allowed.  Few brokers offer a HSA, and I don't want to open an account for a few thousand dollars.  Is there an easy way to get a reasonable return on a HSA?  Or should I hope that this round of inflation will not be like that 40 years ago.

0
Kudos
7985
Views
0
Replies
0 Kudos
670 Views
1
Report
Honored Social Butterfly

The Balance 12/27/2022 -  How To Open a Health Savings Account (HSA)   (and where is also described)

 

You need to invest it where you have good access - CD funds are tied up for too long and if you have to use the funds - there is a penalty to withdraw.

I found the best place, safe and highest rate, at credit unions - their money market accounts get the best rate right now depending upon the balance.

 

You probably aren't gonna find a long term high yield for these sort of funds - but pretty adequate, at least right now - you will just have to keep aware of the best rates and move the funds if needed.

 

You may know this so I am just posting it for others who might read this -

Who Qualifies To Open an HSA?

You must meet the following criteria to be eligible to open an HSA.4

 
  • Your health insurance is classified as a high-deductible health plan (HDHP)
  • You aren't covered by Medicare
  • You have no other health coverage with a few exceptions, which include workers' compensation and long-term care
  • You can't be claimed as a dependent on someone else's tax return
 

An HDHP has a higher annual deductible than what typical health insurance plans require, and there's a maximum limit on the out-of-pocket expenses you'll pay. HDHPs may offer preventative care benefits with no or a low deductible.

 

 

 

It's Always Something . . . . Roseanna Roseannadanna
0 Kudos
652 Views
0
Report
cancel
Showing results for 
Show  only  | Search instead for 
Did you mean: 
Users
Need to Know

"I downloaded AARP Perks to assist in staying connected and never missing out on a discount!" -LeeshaD341679

AARP Perks

More From AARP