Incredible Bank has started offering Health Savings Accounts (HSA), and the rates are competitive. HSAs often have rates higher than regular savings account rates. Yearly contributions into HSAs are limited by law so banks don't have to worry about paying out too much interest. Also, HSA customers tend to be better long-term customers for the banks. Thus, banks are often willing to offer higher rates. Incredible Bank’s HSA is a tiered-rate account with the following rates as of 9/25/2013:
- 1.51% APY $50K and above
- 1.26% APY $25K to under $50K
- 1.00% APY $10K to under $25K
- 0.75% APY under $10K
Refer to Incredible Bank’s HSA page for the full details. One downside to this HSA is a $2 monthly maintenance fee. That’s $24/year, and if your HSA balance is $10K, that is equivalent to a rate cut of 24 basis points. As the balance grows, the fee impact goes down. Based on this fee and the rate tiers, the Incredible Bank HSA is best for large balances.
Just like the checking account, the HSA has no paper checks. Payments can be made with a debit card or with online bill pay.
Also like the checking account, you have to enroll in e-Statements through online banking to avoid a monthly $15 paper statement fee.
Incredible Bank’s checking and money market accounts have become less incredible over the last year. The checking account rate is now only 0.66% and the money market account rate is now only 0.86% (as of 9/25/13). We’ll have to wait and see how these HSA rates hold up.
In addition to lowering rates, Incredible Bank has added fees. As I reported in April, Incredible Bank added a monthly fee on its checking account unless adequate account balances are maintained.
River Valley Bank established the online-only bank, Incredible Bank, in late 2009. River Valley Bank is based in Wausau,Wisconsin, and it has assets of just under $1 billion. The bank has an overall health score at DepositAccounts.com of B+ with a Texas ratio of 18.22% (average) based on June 2013 data. Please refer to our financial overview of River Valley Bank for more details. The bank has been a FDIC member since 1967 (FDIC Certificate # 19772).
Searching for the Best HSA Rates
If you're new to HSAs, please refer to our HSA overview.
Please refer to our HSA rate table to find the best HSA rates in your state and nationwide. Many of the best HSAs are offered by credit unions.