Does My HSA Earn Interest?
How About Investment Options?
All accounts over $100 earn interest
in a Goldman Sachs Money Market Fund. The interest rate is variable depending
on the market. For today's rate, visit your Custodian's website: www.myhsatoday.com/nat. You'll see
the current interest rate on the right side of the page.
To help you facilitate and maximize your long-term savings, your HSA funds are placed in one, two, or three types of balance accounts.
Cash and Savings
One of the key goals of an HSA is the long-term savings of your money, but you also need to have access to your money when and where you need it. Through National Advisors Trust, your HSA money is maintained in two "liquid" accounts and is readily available if the need arises.
Cash — Your HSAToday™ program requires the first $100 of your HSA funds be maintained in a “Cash” balance account, which includes your $25 minimum account balance. This serves as the base component of your HSA and is the most "liquid". Although the money in the Cash account does not earn any return, amounts deposited beyond the first $100 automatically flow into “Savings”, which earns interest on a daily variable rate as shown in the "Savings Rates" section on your Custodian's website: www.myhsatoday.com/nat.
Savings — The second balance account component offered by your HSAToday™ program is a "Savings" account and consists of a Money Market Fund. This fund is also "liquid", meaning that your savings balance is accessible whenever you need more money than is currently available from your “Cash” balance account. The rate of interest can vary daily and is shown in the "Savings Rates" section on your Custodian's website: www.myhsatoday.com/nat. The earnings post to your account monthly. Although Money Market Funds are not FDIC-insured bank savings accounts, they are “traded” on par with the dollar, which means that the are very stable with virtually no market risk associated with balances in the account.
There is a third, and optional, balance account component of your HSAToday™ program that offers qualified account holders a diverse range of investment alternatives to choose from, along with four professionally managed model portfolios that support varied investment objectives and risk tolerance. This investment program is intended for long-term investments only and not to be used for short-term cash availability.
The model portfolios, listed from lowest to highest risk levels, include:
Conservative growth portfolio seeks long-term growth by investing 35% to 55% of its portfolio in equity investments, with the remaining portion in fixed income holdings. Investors choosing this model should understand that accounts will fluctuate in value and could lose money. Investors should expect to leave this money invested for 4 years or more.
Balanced growth portfolio seeks long-term growth by investing 50% to 70% of its portfolio in equity investments, with the remaining portion in fixed income holdings. Investors choosing this model should be willing to accept some volatility in their annual returns. Investors should expect to leave this money invested for 6 to 8 years or more.
Moderate growth portfolio seeks substantial long-term growth by investing 65% to 85% of its portfolio in equity investments, with the remaining portion in fixed income holdings. Investors choosing this model should be willing to accept significant volatility in annual returns. Investors should expect to leave this money invested for 8 to 10 years or more.
Aggressive growth portfolio seeks to maximize long-term growth by investing 80% to 100% of its portfolio in equity investments, with any remaining portion in fixed income holdings. Investors choosing this model should be willing to accept a large amount of volatility in annual returns. Investors should expect to leave this money invested for 10 years or more.
In addition to the aforementioned model portfolios, account holders can also create their own customized portfolio from the approved fund list.
What kind of investor are you?
No two investors are alike, so we provide account holders with an investment strategy questionnaire to help them understand their objectives and thoughts about investment risks so that they can select the portfolio that is right for them. This questionnaire is available for download in our Investment Guide. It is also available as part of the online enrollment process (see below).
How to Sign Up For the Investment Program
1. Log in to your HSAToday™ account using the login section at the top right of this page.
2. Click the HSAToday™ tab at the top of the new page.
3. On the "HSA Investor" menu on the left side of the page, click "Enroll Today" and follow the onscreen prompts to set up your investment options.
NOTE: You must be enrolled in the HSAToday™ program to be eligible for the Investment Program. After your savings account has reach the minimum threshold of $1,000 set by your Custodian, you are eligible to place funds in a diverse range of investment options.