HSA vs HYSA
Let me preface by saying I am a healthy 26 year old whose only regular medical expenses are twice monthly therapy visits.
I’m trying to choose between health insurance plans through work and I want to know if I should get the HDHP option which is $43/month so I can qualify for the HSA and take advantage of the tax advantages of the HSA, all while not actually using the health insurance and continuing to pay out of pocket like I currently do for my health expenses (because it’s still cheaper than paying the deductible since I’m pretty healthy) and still reaping the benefits of the HSA.
HOWEVER, if my research is correct, HSAs on average are only growing at .5% APY. I have an HYSA that grows at 5% currently. Would it be better to just go with the ultra low health insurance option I have (16/month) that does NOT qualify for an HSA and just contribute whatever money I would have put in the HSA into my HYSA instead so it will grow faster? Do the tax advantages of the HSA outweigh the major increase in APY that an HYSA offers?
