[June 30, 2015]

HSA Consulting Services and Avidia Bank Release Study Projecting Coming Wave of HSA Investment Growth

Avidia Bank today released a study highlighting the coming wave of investment growth in Health Savings Accounts (HSAs). The study is available at AvidiaHealth.com or AskMrHSA.com.

The analysis found that while the ability to invest funds inside an HSA for long-term tax-free growth has long been available, many HSA owners do not even know it exists and only use their accounts for current medical spending. Growing HSA balances and renewed interest in the concept by investment advisors is likely to bring rapid growth to HSA investing.

"Over the past six months, every new group or broker that I encounter has inquired if Avidia offers investment options for our HSA program," says Lynda Westbrook, Vice President of Avidia Bank's Healthcare Solutions business. "They tell me that the group's President, CEO or HR Director wants it and that their employees are asking as well."

Todd Berkley, President of HSA Consulting Services, LLC, the study's author, projects that HSA investments are likely to quadruple every 3 years on their way from $3B now to $2B in 2017 and $40B in 2020. "The factors are all in place for investments within HSAs to go from a hidden gem to a primary driver of HSA growth as financial advisors start taking an active role in promotion of HSAs," Berkley said.

The study concludes that HSA investment growth is bound to accelerate due to account demographics alone and that focused education could throw gas on the fire. Berkley analyzed the numbers from the Devenir study and projects even faster growth, predicting that HSA investments could grow more than 50% per year compound annual growth for the next several years.

"HSAs offer investment professionals the opportunity to help clients with trusted expertise in the increasingly critical arena of healthcare planning and spending," Westbrook added. "By studying the concept and creating partnerships to offer a top-notch program to your clients, you can set yourself apart in your firm and show others how to create a valuable extension to the retirement savings plans of your firm."

About Avidia Bank HSA

Avidia Bank has been offering HSAs since 2006. In 2013, the bank partnered with Alegeus Technologies in order to provide a more robust health payments experience for the customer. Avidia Bank is committed to its independent course with our strategic partners and it allows for a scalable solution and offers a No-Fee* interest-bearing account, internet banking, mobile access, with multiple funding and investment options. In 2015, the bank rolled out a brand extension called AVIDIA HEALTH in response to requests for direct HSA referral business coming in from brokers and financial consultants. The bank experienced 400% deposit growth in the HSA business line for 2014. Learn more at www.AvidiaHealth.com.

*Free of transaction and service fees

About HSA Consulting Services, LLC

HSA Consulting Services is a leading consultant focused exclusively on helping people make the most of HSA plans and accounts. The company runs AskMrHSA.com, America's #1 Educational resource for Health Savings Accounts and its President, Todd Berkley, is the author of "The HSA Owner's Manual," published by Tate Publishing.

View source version on businesswire.com: http://www.businesswire.com/news/home/20150630006194/en/

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