How to Choose the Right Health Savings Account

A health savings account is one of the most valuable things that you can own if you have your own health insurance plan. If your plan is combined with a high-deductible health plan, you can save a lot of money on health care and taxes at the same time. The health savings account popularity has grown rapidly and as a result the many different options can be confusing. Here are a few things to keep in mind when choosing your health savings account.

Fees

Shop around and get an idea of the different fees that health savings accounts charge. Depending on the company they could charge you for many different things. You might have a monthly fee just for maintaining the account for you. Certain companies might have a setup fee for getting everything started for you. You might also pay a transaction fee every time you use the account. If your account has a debit card, they might charge you for using it as well. If you want to save money and eliminate the fees, look around at several different providers. They will be able to give you a summary of all of the different fees that they charge. Compare the different providers and review the lowest fees.

Features and Benefits

Another key thing that you will want to compare is the amount of features and benefits that you receive. One of the nicer conveniences of a health savings account is the debit card that comes with it. You will want to make sure that you have a debit card and checks. The debit card makes everything a lot easier. Some health savings accounts require you to fill out a claim form or pay the doctor out of your own pocket and then get reimbursed by the health savings account. However, with a debit card, you simply swipe it and move on. There is no paperwork to keep track of or any claims to fill out.

In addition to having easy access to your account, you will also want to be able to keep track of it easily. Many of the newer health savings accounts out there offer online account access. You will also be able to receive a monthly statement on most accounts. These features make it easier to figure out exactly how much money you have in there.

Investment Options

Many health savings accounts allow you the ability to invest your money and receive a return on the money that you are saving. Some accounts may be as simple as giving you a predetermined interest rate. Other accounts give you multiple options to invest your money. You could put it in anything from stocks to bonds to mutual funds. Investigate the different options and see which option will give you the best return on your investment, but keep in mind that you should not invest in options with a lot of risk.

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