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Ken Tumin founded the Bank Deals Blog in 2005 and has been passionately covering the best deposit deals ever since. He is frequently referenced by The New York Times, The Wall Street Journal, and other publications as a top expert, but he is first and foremost a fellow deal seeker and member of the wonderful community of savers that frequents DepositAccounts.

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DETAILSINSTITUTIONAPYMINMAXPRODUCT
Lake Michigan Credit Union2.00%$5k-Health Savings Account
RiverLand Credit Union1.50%--HSA
Alliant Credit Union0.65%--Health Savings Account
Accounts mentioned in this post. Rates as of July 29, 2014

Credit Unions That Offer Top Rates on Health Savings Accounts

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Health Savings Accounts (HSA) offer tax advantages for those who can qualify. This previous post has the details about HSA features and who can qualify. Another advantage of HSAs is that some credit unions have HSAs with interest rates much higher than the internet savings account rates. These rates have been falling, but they continue to be good deals.

One reason why HSAs often have higher rates is that HSAs have annual contribution limits. Thus, most HSAs have relatively small balances as compared to regular savings and money market accounts. This limits the interest payments that institutions have to make.

Another reason for the higher rates is that HSAs are more "sticky" than regular savings and money market accounts. It's not as easy to rate chase with HSA money. Most internet banks don't offer HSAs. Thus, most people will keep their HSAs at one institution for a long time.

You can search for the best HSAs in our Health Savings Accounts table. There are several all-access credit unions that offer top rates on their HSAs. Here are three of them that have no fees and have top rates on all balances:

The best rate is currently offered by RiverLand Credit Union in Louisiana. The credit union has a special page with many details of its HSA. It has no setup or monthly fees, and it has no minimum balance requirement. I described a way anyone can join this credit union in this RiverLand Credit Union CD review. Please note that this credit union has a history of rejecting applications. One reader described in this forum thread how he was rejected by the credit union after he paid $60 to join an association.

Another good deal is the HSA at Lake Michigan Credit Union (LMCU). Like RiverLand, LMCU's HSA has no setup fees, monthly fees or minimum balance requirements. It's a tiered-rate account, but the rates are very competitive even for small balances. You can see the details in this LMCU HSA page. This credit union also has good deals on a reward checking account and a credit card. Anyone can join this credit union via an association. More details are in my LMCU reward checking review and in this forum thread.

One all-access credit union that makes it easy to join is Alliant Credit Union. In addition to offering top rates on regular savings, checking and CD accounts, Alliant Credit Union also offers a top rate on its Health Savings Account. The rate has recently fallen, but it continues to be very competitive. Like the above credit unions, there are no setup fees, monthly fees or minimum balance requirements. Refer to Alliant's HSA page for more details. For information on how to join, please refer to my last Alliant Credit Union rates review.


  Tags: RiverLand Credit Union, Lake Michigan Credit Union, Alliant Credit Union

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Comments
6 Comments.
Comment #1 by Anonymous posted on
Anonymous
I have joined several credit unions and most of them send me a mailing that states that I have the opportunity to get $1,000 life insurance policy at no cost to me.  The only problem is that they are asking that I fill out an application and send it back to credit union to get the free policy.  I have never done this not knowing that I might be signing up for something else.  It has always seemed to me if they were going to give you $1,000 of life insurance at no cost then they would just do it and not ask for any paperwork.   

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Comment #2 by Anonymous posted on
Anonymous
It could be one of those schemes where they give you the $1,000.00 of insurance free but in the fine print you are agreeing to purchase more after the first year or so.  I would never fill out the applications for anything free unless I had time to read "all" of the fine print!  You would also have to see what information they are trying to get from you in order to give you the free policy, imo.  I just don't fool with these things.

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Comment #3 by Anonymous posted on
Anonymous
$1000? Why bother?

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Comment #5 by Anonymous posted on
Anonymous
Alliant Credit Union does regularly mail the "free' life insurance to me. I trash them right away.

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Comment #6 by Anonymous posted on
Anonymous
The insurance mailings I receive linked to the various Credit Unions I belong to are for Accidental Death and Dismembership. The letter indicates that the Credit Union pays the premium for the $1000 policy for the member. The maiiling is to entice you to purchase more. So you probably have the $1000 coverage paid for by the CU. I suspect that the insurance company "buys" the Credit Unions' members list for the price of the $1000 coverage. They also get to use the CU CEO/Presidents name in the letter to make it sound like the CU is doing you a favor. Don't just throw out the mailings. If you're in a car wreck, your spouse could collect on the small policy. It would be interesting to find out what is really going on with the members list, the $1000 policy premium, and how this all fits in with the Privacy Policy. I feel there are some shenanigans going on.

Once I called the insurance company to ask what coverage I had. They listed several $1000 policies for the  various Credit Unions that I belong to.

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Comment #7 by Thread Hijacker (anonymous) posted on
Thread Hijacker
I just had to chime in regarding the $1k life insurance offered by CUs. It is legit, the $1k free life insurance offer IS an "enticement" for you to purchase additional insurance and it is used through your CU because your CU is a trusted source and authority. Keep your policies, return the form, opt-in to get additional life insurance or not, update your beneficiary information. Welcome to adulthood.

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