Is It Proper For You?

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Optum Bank HSA is a Health Spending Account (HSA) from Optum, a monetary firm related to the United Healthcare Insurance firm. This account is finest for these with United Healthcare insurance coverage or who work for an employer that covers the minimal required charges customers should pay to have an account.

Fees – 5

Customer Service – 6

Ease of Use – 7

Investment Options – 6

Minimum Balance to Invest – 6

6

Total

Optum Bank HSA has many thrilling options that would make it an awesome choice as an HSA supplier. However, account holders pay a price till their stability reaches $5,000 and so they cannot make investments till they’ve saved at the very least $2,000.

Pros and Cons

execs

  • Monthly price could also be paid by the employer or waived in some instances
  • Low-fee index funds for obtainable for funding accounts
  • Quality funding choices, though restricted
  • Receipt vault to trace previous bills

cons

  • Monthly price, if not waived or paid by the employer
  • Minimum stability for investments
  • A restricted menu of funding choices
  • Poor customer support critiques

Who Is Optum Bank HSA For?

Our Score: 6
Monthly Fee: $3.75
Balance Required to Waive Fee: $5,000
Investment Threshold: $2,000

Optum Bank HSA could be match for you in case your employer gives Optum as an HSA supplier or in the event you primarily put money into index funds.

  • Employer gives an Optum account. If your employer gives Optum as an HSA supplier, you may discover it helpful. More so if the employer is keen to pay the month-to-month upkeep price in your behalf. Optum has glorious, though restricted, funding selections. Optum nonetheless gives sufficient choices to make a portfolio that matches most monetary targets. Especially for index traders.
  • Index traders. This account is an effective match for Investors with a easy index portfolio who need low-cost choices. Optum gives an array of index funds with low expense ratios. Vanguard, Schwab, and Fidelity funds can be found from Optum at no further price.

What We Like About Optum Bank HSA

If you could have an Optum Bank account, there are many issues to love, equivalent to plentiful funding choices and an honest cell app.

Investment Options

Optum gives strong funding choices although the choice is restricted. Index traders will benefit from the low-fee selections equivalent to funds from Vanguard and acquainted brokers equivalent to Schwab and Fidelity. Target date funds can be found from Schwab. Several of the funds in Optum’s lineup have expense ratios which can be lower than 0.10%.  

Few Account Fees

Optum will solely cost three different kinds of account charges.

  1. ATM transaction price of $2.50. (Be conscious the financial institution/ATM you utilize can also cost a further price.)
  2. An outbound switch price of $20.00 or rollover price to a different HSA supplier.
  3. A $1.50 price for printed statements.

Aside from the month-to-month price, Optum prices ATM charges per transaction. If you keep away from ATMs when potential, it can save you on this small cost. You solely incur an outbound price whenever you switch your HSA to a different supplier. This one-time price is normal amongst rollovers. And the printed assertion price is definitely prevented by those that desire digital statements.

Receipt Vault

The receipt vault means that you can add receipts to prepare and conveniently retailer them in a single place. That means, you’ll be able to have them for later reimbursements and tax functions. Ensure your itemized receipt contains the identify of the supplier or service provider, the date, the precise quantity of expense, and an in depth description. To add the receipt, take an image or scan it and add it to the cell app or desktop dashboard.

Scheduled Contributions

Setting up automated deposits into your funding account is a good way to construct wealth. Scheduling contributions means that you can develop your tax-advantaged HSA account passively. Once you meet the funding threshold, you’ll be able to make investments your contributions in response to your fund picks.

Mobile App

The cell app means that you can do greater than the usual banking features like paying payments and monitoring funds. It can even observe contribution limits, seize and submit receipts, seek for certified medical bills, and extra.

Another characteristic of the cell app is Alexa and Google integration. Optum’s apps permit Google and Alexa to reply widespread questions concerning the HSA. Questions about qualifying bills, HSA contribution limits, tax varieties, and Optum Bank HSA contact info.

Optum’s app can even hook up with completely different digital wallets. Whether you wish to hook up with Apple Pay, Google Pay, or Samsung Pay, the cell app covers all three.

Qualified Medical Expense Tool

The certified medical expense software is a searchable net web page of bills. Each expense is listed as a qualifying, potentially-qualifying, or a non-qualifying medical expense. Hover over every listed expense on the web page for extra element about {qualifications}.

Where Optum Bank HSA Could Improve

Optum prices a month-to-month upkeep price that different HSA suppliers don’t cost. Also, different HSA suppliers don’t have a minimal funding threshold. Alternatives like Lively and Fidelity don’t have these charges and minimums. And Optum has a smaller funding choice than some opponents as nicely.

But customer support is the world the place most reviewers wish to see enchancment. There are frequent points with logins and lengthy wait occasions on the name heart. Reviewers point out a number of transfers on the cellphone and unclear communication from the representatives. Other reviewers reported declined qualifying bills, and customer support couldn’t assist resolve the problems.

Optum Bank HSA Customer Service

This buyer assist is obtainable on-line assist anytime by way of the FAQ part, which gives fast solutions to widespread issues. Log into your account to see your stability, order a brand new card, or verify your assertion. It even gives an HSA Tax Center useful resource to your tax questions. Optum gives a contact kind for another points you could have. It additionally gives a name heart open Monday-Friday weekly, excluding main holidays.

Fees & Limits

Optum prices a small month-to-month upkeep price of $3.75. It will waive the price in the event you maintain a mean stability of $5,000 or extra.

It additionally has an funding threshold. Your stability should stay at or exceed $2,000 every time you make a brand new funding.

How To Open an Account

Before you’ll be able to open an HSA at Optum or any financial institution, it’s essential to meet particular {qualifications}, together with a qualifying High-Deductible Health Plan, to be eligible. Your well being protection ought to solely embody what’s permissible by the IRS. You can’t be enrolled in Medicare or be claimed as a depending on one other particular person’s tax return. The IRS publication 969 incorporates extra details about these situations.

Have your social safety quantity, a sound e-mail, and medical ID card together with your group or employer quantity prepared. If you might be enrolling as a person, you’ll not want a medical ID card with the group or employer quantity.

For identification verification, you may additionally want a replica of your social safety card and a sound state-issued or government-issued photograph ID. If your photograph ID doesn’t comprise your deal with, you may additionally want a replica of an electrical invoice, gasoline invoice, renter’s settlement, or mortgage assertion. Your cellular phone invoice will not be accepted.

To switch an HSA, full the appliance for opening an HSA with Optum. After the account is about up, log in and full an HSA Rollover Transfer Request Form. The request kind is in Forms & Documents, beneath the Help & Tools menu.

How Safe Is Optum Bank HSA?

Overall, the platform is secure, and Optum protects your account in a number of methods. It makes use of cloud-based enterprise identification administration (EIDM) to make sure that solely licensed customers entry your information. It additionally complies with federal privateness rules equivalent to FISMA, SAS70, and HIPAA, amongst others.

Furthermore, Optum’s safety techniques assist security measures equivalent to identification credentialing, bodily and logical entry administration, good card ID badges, biometrics, and HSPD-12 options.

Best Alternatives

Those who wish to benefit from investing in an HSA, particularly in the course of the first 12 months of opening the HSA, may profit extra from options with out an funding threshold. If you don’t need a minimal funding threshold or to pay a month-to-month price, take into account Lively and Fidelity as options. Lively and Fidelity supply extra funding selections as nicely.

Lively

Lively focuses on HSAs, and they’re glorious. Accounts do not have month-to-month recurring charges, and there is no minimal stability required earlier than you’ll be able to entry investing options.

If you utilize Lively by an employer, they’re charged a modest price, but it surely’s free for you. Funds for investments are transferred to a linked account at TD Ameritrade, the place you’ll be able to select from any supported funding. TD Ameritrade is a prime brokerage in its personal proper, and the partnership with Lively is a win-win for everybody.

You pays for certified bills with the Lively debit card, reimburse your self for bills paid by way of different strategies, or save up bills for future reimbursement. If you need an HSA that works with any medical health insurance firm, has nearly no charges and gives an unlimited vary of investments with no minimums, it’s best to take into account Lively.

Fidelity

Fidelity is without doubt one of the most vital funding brokerages within the United States. Its HSA is a superb alternative, notably for many who already make investments with Fidelity. You can select a self-directed account with no recurring account charges or minimums. There’s additionally a hybrid robo-advising model referred to as the Fidelity Go HSA, which requires a month-to-month price for balances of $10,000 or extra.

The Fidelity HSA can be noteworthy for its entry to low-cost investments. This account contains entry to Fidelity’s mutual funds with no expense ratio and nearly the complete U.S. inventory, bond, ETF, and mutual fund market.

Confident traders might wish to use the self-directed account with no recurring charges. If you’re uncertain which shares or funds to purchase, take into account the competitively priced Fidelity Go HSA choice.

The Bottom Line

Optum continues to be a wonderful alternative for an HSA supplier, even with the charges and customer support points. After all, it would waive your month-to-month price.

Other suppliers might have extra in depth funding picks, but it surely nonetheless gives loads of selections for traders. However, Optum has a number of options value , just like the receipt vault and certified medical expense software.

Further studying:

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