Health Savings Accounts (HSA) often have rates higher than regular savings account rates. Yearly contributions into HSAs are limited by law so banks and credit unions 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. As you can see in our HSA table, the best rates are actually from credit unions. If you select "nationally available" in the "Filter Accounts" button, you can see the all-access credit unions that offer HSAs. Thanks to a reader's email and this FW thread, I learned of another one with a good HSA deal. It's Pacific Community Credit Union, and its HSA has a 3.25% APY. This is listed in the credit union's rate sheet as of 1/31/2013.
One downside with this HSA is that there's a $3 monthly fee (see fee disclosure). The credit union has an HSA page, but most of the information is general.
We have been listing Pacific Community Credit Union HSA in our rate table since 2011, and it has maintained a 3.25% APY. One thing that's new is membership eligibility. They now make it easy for anyone to join with an online application provided by Andera. To access this application, click on the "Open an Account" link on right sidebar of any page at the credit union's website. In the second page of the application, select "Employer or Association Member" and select the last option "I would like to become a member of the Friends of the Fullerton Arboretum". When this is selected, it shows the following:
The Friends of the Fullerton Arboretum is a nonprofit corporation organized for the sole purpose of supporting the Fullerton Arboretum through membership dues, fund-raising events, and volunteers. We have made a contribution on your behalf which supports the Friends and invests in the future of our environment and the education of our children. Nothing is required of you as a result of your membership.
You can also be eligible to join if you live or work in Orange County, Riverside County or in some other parts of California.
The HSA isn't an option in the online application. FW members have reported that the HSA application has to be done by mail or at a branch.
Credit Union Overview
Pacific Community Credit Union branches are located in the Southern California cities of West Covina, La Habra and Irvine. The credit union is part of the CU Service Centers so members can visit any of the 5,000 Credit Union Service Centers in the shared branch network.
The credit union has an overall health score at DepositAccounts.com of 5 stars (out of 5) with a Texas ratio of 0.73% (excellent) based on September 2012 data. Please refer to our financial overview of Pacific Community Credit Union for more details. The credit union is federally insured by the NCUA (Charter # 60847).
Searching for the Best HSA Rates
If you're new to HSAs, please refer to our HSA overview.
You can search for the best rates in your state and the best rates that are nationally available by using our HSA rate comparison table.