I would like to get feed back on the pros and cons of offering HSA accounts. Do you offer them? If so what are your charges? I seem to be getting the impression that banks are getting away from offering HSAs and wondering what the reasons are.
Thank you for your input.

We still offer them. Initially we thought it would offer some fee income and service to our existing customers. We offer a debit card for individual and family plans. We only offer the product locally. We don't open by email or mail. The customer needs to be present. The only issue we've run into is when the customer has an overdraft. Since these are prohibited transactions we close out the accounts and return and charge the checks presented. Other than that they don't require much servicing.

That's the key. With no evidence of forethought, banks jumped into HSA's on the unwarranted assumption that they would generate large, long term deposits like IRA's. They don't.

It's a great vehicle for the customer, but for the bank to look anything but foolish, they need to generate fee income.

2012 thread linked to 2005 thread.

The fees are:
$5.00 a month for paper statements (optional) no fee if electronic statement.
$35.00 early closing fee
That's it. There are more trouble than they are worth.

We have never offered them and I really hope we never do. The few times I've been asked to look into adding an HSA product I've pointed out that there is a huge disconnect between what the few clients that ask about them really want and what we would actually provide.

We don't get any requests from individuals wanting a stand alone HSA account, which would actually be the most uncomplicated entry into the HSA world. What we do have is a very small number (maybe 3 requests in the past 5 years) of small to mid sized businesses that are looking for someone to handle all of their HSA needs...for free. They want someone to bring to them a packaged HDHP/HSA, handle enrollment of their employees, provide education sessions, set up salary/payroll deferrals, provide debit cards, handle paper claims, and most importantly not charge for any of this.

HSAs are taking off as part of an employee benefit package and I really feel it should be left to those who are in the business of providing and administering employee benefits to take over this line of business. Stand alone HSA accounts for individuals that are not packaged with a HDHP as part of an employee benefits package are going to disappear.