High-Yield HSA
As a health savings account (HSA) accountholder, there are plenty of ways you can use and find value with your HSA. Any HSA funds that you have that are not invested are considered your HSA cash balance. As you may know, the funds in your HSA cash balance earn interest, tax-free. This means that your balance grows just by having money in your HSA.
At EBC, we have two interest options for your HSA—a traditional interest option or a high-yield interest option. When you first enroll in your HSA, your HSA cash balance will automatically start out with the traditional HSA interest option, but you have the ability to transition your HSA cash balance to a high-yield HSA option at any time. The high-yield HSA gives you the opportunity to earn higher interest on your HSA funds by having your HSA held in a non-FDIC-insured account that is backed by a highly rated insurance company, Pacific Life. With the high-yield feature, the road to financial wellness is more accessible for you should you choose to take advantage of enhanced interest rates and maximize the savings potential of your HSA.
Frequently Asked Questions
What is the difference between the high-yield and traditional interest rate options?
The interest rates for both the high-yield and traditional interest options are tiered based on your account balance—higher account balances earn greater interest. These interest rates are set by your HSA custodian, WealthCare Saver, and are subject to change. The current interest rates are:
Are there any fees associated with each of the interest options?
No, the interest option you choose has no impact on account fees.
How can I update my interest option preferences?
To update your interest option preferences:
- Log in to your online account at www.ebcflex.com.
- Select your HSA tile.
- Click on your HSA balance.
- Select Interest Options.
Note: When you first enroll in your HSA, you will automatically start out with a traditional HSA interest option. If you would like to stay with the traditional HSA interest option, you do not have to take any action.
Can I split my available cash balance between the two account interest options?
No, once you opt-in to an interest option all of your available cash funds are placed within the chosen account.
How often can I update my interest option preference?
You can update your interest option preference as often you’d like. When your preference is updated, the interest rates associated with your new selection will take place within one calendar day.
Will there be any changes to my account if I update my interest option preference?
The only changes you will see when you update your interest option preference is an update to your cash balance interest rate. You will continue to have the same account number and Benefits Card, and you will access your account as you normally do.
How is my money kept safe with the traditional and high-yield interest options?
Your deposits in our traditional interest option are insured by the FDIC for up to $250K.
Your deposits in our high-yield interest option are not FDIC-insured and are backed by a highly rated insurance company, Pacific Life. Insurance companies, including Pacific Life, are highly regulated by each state to ensure they can cover all of their obligations. No assurance can be given that Pacific Life will not encounter financial difficulties that make it unable to honor its obligations to its policyholders.
Pacific Life is highly trusted for their ability to deliver strong and stable products, with more than half of the 100 largest US companies as their clients. For more information about Pacific Life, read our next FAQ: What should I know about Pacific Life?
What should I know about Pacific Life?
Pacific Life is an insurance company who provides a wide range of life insurance products, annuities, and mutual funds, and offers a variety of investment products and services to individuals and businesses. They are highly trusted for their ability to deliver strong and stable products, with more than half of the 100 largest US companies as their clients. They have exceptional company ratings from all major rating agencies and manage over $191B in assets.
General information about Pacific Life can be found at: www.pacificlife.com/content/pl-corp/home/about.html
Additional information on Pacific Life’s financial performance and ratings can be found at: www.pacificlife.com/home/about/insurance-ratings-and-financials.html
Where can I find the terms and conditions governing my high-yield HSA?
You can view the terms and conditions and important disclosures regarding your high-yield HSA here: www.wealthcaresaver.com/disclosures/