What Is Starship HSA? 📖
Starship HSA is a personal savings account designed for health care expenses. An HSA is like a personal savings account, only the money is for your health care expenses and you retain full control over the account. This means neither your employer or your insurance company are able to manage the account. A big advantage of setting up an HSA is that any money you do deposit into it won’t be taxed. Many people start up HSAs because plans offered by their employers don’t always have fantastic options. For instance, you might not be given a debut card, and you may be unable to invest your HAS funds. You may also be met with high fees.
How Does Starship HSA Work? 👨🏫
Starship HSA may be for you if you want access to a debit card, wish to invest and want to avoid high fees. You will only be charged a reasonable fee if you want to invest when using your Starship HSA account. Starship was founded in 2016 and its HQ is in New York. The company says it saw a huge rise in sign-ups during the pandemic. According to Starship, around half of US workers aren’t getting traditional benefits from an employer, and this figure is only likely to grow in future. With Starship, you get the chance to manage your HSA account in a simple manner without paying fees. The account may be particularly appealing to self-employed home workers aiming to make progress in the gig economy. With a Starship account, you can add funds yourself and receive from various employers that you might be working for.
Key Features of Starship HSA ⚙️
Starship HSA can help you offset some of the high expenses linked to high-deductible health plans. Even if you have been offered an HSA plan by your employer, you don’t need to use it if you see a more suitable option elsewhere. When you spend money on qualifying medical expenses, you shouldn’t be taxed on this.
You can avoid a wide range of fees by opting for Starship HSA. These include monthly maintenance fees, withdrawal fees, minimum balance fees, transaction fees, debit card fees, overdraft fees, account opening fees and account closing fees. You can either save money in your Starship Spending Account or invest it. It’s also possible to save some of your funds and invest others. If you have a saving balance of $2,000 or above, you can expect to receive 0.05% APY interest.
You can start investing with any account balance. You can even invest all of your HSA funds if you wish to do so. Investment takes place via automation or a robo-advisor. Once you have provided information about your tolerance to risk, Starship will suggest a portfolio for you.
How Much Does Starship HSA Cost? 💸
You will only be charged $1 dollar a month for investing and an extra 0.35% if your balance is over $5,000. There are no other fees to be concerned about.
The Starship HSA App 📱
The Starship HSA app has more functionality than the website. Once you have opened your account on the website, you’ll need to do most other things through the app. As the mobile app is available on the Android and iOS platforms, most tablet and smartphone users should be covered.
Is Starship HSA Safe and Secure? 🔒
The Starship website is encrypted, with funds being FDIC-insured up to $250,000. All invested funds are SIPC-insured. Although Starship HSA isn’t a bank, it does offer banking services. These are provided by NBKC Bank. It also has brokerage services, which are delivered by DriveWealth. As with any investment service, it’s essential to remember that it is possible to lose money. Once you have chosen a portfolio, your funds will be invested. If you do need to get in touch with the team at Starship HSA at any point. If you ever want to get in touch with Starship to talk about security or any other issue, you can do this by using the live chat facility or by sending an email to firstname.lastname@example.org.
Advantages of Starship HSA 👍
- No monthly fees unless investing
- Self-employed workers eligible
- Earn up to 0.25% APY as a cash saver
- Invest without meeting minimum balance
Disadvantages of Starship HSA 👎
- Investment fees payable
- No customer service phone number
- Restricted investment options
If you are looking for an HSA that gives you more control, Starship HSA may well be for you. There are almost zero fees to worry about, and good investment opportunities are available as long as you are satisfied with automation. If Starship HSA isn’t quite what you’re looking for, other options are available that offer more investment options and also charge few to no fees.
As you might expect, Starship describe their product as “the best HSA (ever)”. HSAs have been on the market for almost twenty years now. They were originally launched to help people offset the spiraling costs of healthcare and reduce their tax burdens. Before you go ahead and apply for a Starship HSA account, you’ll need to make sure you are eligible. You’re likely to be eligible if you’re covered under a high deductible health plan or HDHP. This means your insurance plan needs to offer a health insurance policy that has a deductible of at least $1,400 for single coverage or $2,800 for family coverage. You won’t be eligible if you are currently enrolled in Medicare or Medicaid.
The purpose of an HSA is to help you save for the care that you might need in the near future whilst giving you the chance to invest in any help you might require in several years time. Your money is deposited into your account before taxes are deduced from your paycheck. This allows you to make immediate savings. Your money will also come out without taxes being deducted, and you’ll get an HSA card that you can use when purchasing eligible goods and services. You won’t be taxed on your investment growth either. Starship offers the vast majority of benefits you should expect to be offered from an HSA.