As long as you have an eligible high-deductible health insurance plan, you can open a health savings account with many banks and brokerage firms.
Caveat: If your employer limits payroll deduction of your HSA contributions to its recommended HSA provider, use that account so that your contributions avoid the 7.65% Social Security and Medicare (FICA) taxes and to ensure you get any company match. Once you’ve taken advantage of those benefits, though, you can transfer your funds to another HSA.
For long-term goals
If you use money outside of the HSA to pay medical bills now, you can build up cash tax-free in your HSA for future medical expenses, such as health care in retirement.
HSA Bank offers a large menu of mutual funds and other investments through TD Ameritrade. The monthly account-maintenance fee of $2.50 is waived if you maintain a balance of $5,000 or more.
For near-term expenses
Credit unions offer the most-competitive rates. For example, Lake Michigan Credit Union, which is open to anyone who donates $5 or more to the West Michigan chapter of the ALS Association, is paying 1.5% — or 2% on savings of $5,000 and up.