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Bank Sells Customers' HSAs And Terminates HSA CDs

Friday, June 15, 2012 - 1:12 PMAmerican Chartered Bank - Details
This is an interesting case in which a bank decides it no longer wants to be in the business of servicing Health Savings Accounts (HSAs). The bank, American Chartered, sold the HSAs to SelectAccount, an affiliated business of Blue Cross Blue Shield of Minnesota. This Crain's Chicago Business article reviews the reasons for this sale and the problems it's causing the HSA customers:
Robert Riter, chairman of American Chartered, said his bank wasn't looking to sell the deposits and instead was approached with a compelling offer. Like many banks these days, American Chartered has more deposits than it needs, and the health savings accounts weren't key to its business.

American Chartered Bank posted an announcement of this sale which provided some interesting news on what's going to HSA CDs:
Since Select Account does not offer certificates of deposits, any American Chartered HSA CDs held by clients were liquidated on May 31, 2012, with all interest due and payable through maturity of CDs paid in advance.  On the same day final CD balances, including interest, were transferred into the clients HSA checking accounts.

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Ken TuminKen Tumin5,472 posts since
Nov 29, 2009
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