No. of Recommendations: 6
<<I opened one last year with the HSA Bank. It's now paying 2.3% on a balance of just under 3,600. Can I do better? If so, where? If not, why not? I plan to contribute another 5K for this year.>>

ING Direct = 4.4%
Emigrant Direct = 5.15%
Paypal = 5.02%

Unless you need absolute access to your funds by walking into a branch, Paypal is probabl;y your best first choice as you can use the debit card to get funds.

You cannot open an HSA with Paypal unless they are an insured bank (they are not) or approved to be a trustee or custodian for HSAs (I doubt it). Here are some FAQs and answers from an HSA FAQ site set up by the Treasury dept:

In one of the answers, there is a link to a site that has apparently has a list of approved institutions.

What do I have to do to “establish” my account?
Your account trustee/custodian will determine what you need to do, which may include completing and processing appropriate paperwork, and making a minimum deposit.

Who can help me establish my account?
Insured banks and credit unions are automatically qualified to handle HSAs. Any bank, credit union or any other entity that currently meets the IRS standards for being a trustee or custodian for an IRA or Archer Medical Savings Account (MSA) can be an HSA trustee or custodian. The law also allows insurance companies to be HSA trustees or custodians.

My bank/credit union doesn't offer HSAs, can I be my own trustee or custodian?
No, you must establish your HSA with an approved institution.

I can't find a bank or credit union to open my account, what can I do?
Unfortunately, we cannot maintain a list of banks, credit unions or other institutions offering HSAs. We recommend checking websites like for companies who are willing to establish your account regardless of where you live.


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