Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

CU System
Patelcorp launches HSA investment service
SEAL BEACH, Calif. (3/23/12)--Patelcorp, a division of $3.61 billion asset Patelco CU in Pleasanton, Calif., will offer its InvestDaily mutual fund investing program to members who have Health Savings Accounts (HSAs).

Patelcorp will work with SaveDaily Inc., a provider of low-cost mutual fund investing platforms used by financial institutions. The addition to InvestDaily, which is built on the SaveDaily platform, adds to the organization's offerings of affordable self-directed mutual fund investing (PR Newswire March 21).

"Our members are looking for better ways to save and grow their money," said Patelco Vice President Mark Hoaglin. "With the high cost of healthcare today, members who have HSAs understand how important it is to make their money work for them, and this is a great way to earn a higher return versus the rates offered on traditional HSA savings accounts."

HSAs were created by a federal law aimed at helping Medicare recipients pay for their prescription drug coverage. Any adult with a high-deductible health insurance plan is eligible to create an HSA and can make tax-deductible contributions to the savings plan throughout their plan year, according to the U.S. Department of the Treasury. This is a fast-growing segment of the financial services industry, with estimated balances in excess of $12 billion being held in health savings accounts in the U.S., said SaveDaily.

"Health Savings Accounts are a perfect fit for our mutual fund investing platform," said Gregory Vacca, SaveDaily president. "Just like an individual retirement account or 401(k), which we also offer, the HSA provides another tax-favored vehicle that daily savers can use to earmark money for future needs. Ideally, these funds will grow at a better rate than traditional checking, savings, and certificates of deposit, which provide only minimal returns."

Credit unions, banks and other financial service providers adopting the platform can offer mutual fund investing to their members/customers at low-cost under their own brand. For one low flat monthly charge, investors in mutual funds can have unlimited positions and unlimited transactions without transaction fees.


RSS





print
News Now LiveWire
#NewsNow: @CUNA-CFA survey results suggest 3-3.5% increase in holiday spending. http://t.co/GjcDvvwfzy
8 hours ago
.@WOCCU promoted financial inclusion as a sustainable development goal at two separate @UN events this month.
9 hours ago
Colo. authorities OK first-ever #marijuana-focused CU #NewsNow http://t.co/77qj6O3bcu
9 hours ago
.@Vancity busts some Black Friday retail myths http://t.co/q8Wht3CcRc
10 hours ago
Things get hairy at #creditunions during #Movember http://t.co/Hc6tYRMSY8
12 hours ago