We independently evaluate all recommended products and services. If you click on links we provide, we may receive compensation. Learn more. Fidelity is our overall top pick for health savings account (HSA) providers, excelling at most of the things that make a great account provider: no fees nor minimum balance requirements, a vast array of investment choices, and a stellar interest rate. For those reasons, it also sweeps our awards for the best fees, investment options, minimum balance requirements, and spending accounts. When choosing the best health savings account providers, we considered various factors, including interest rates, minimum deposit requirements, investment choices, fees, and customer experience ratings. We narrowed the list of HSA providers to a few clear winners using that information. Best Health Savings Account (HSA) Providers of 2024 Best Health Savings Account (HSA) Providers of 2024 The Bottom Line Guide to Choosing Frequently Asked Questions (FAQs) Why We Chose It Fidelity dominates the best HSAs field, offering superior services overall, and specifically ruling four important criteria. Fidelity doesn’t charge any fees on its HSAs, including the monthly maintenance fees, account rollover fees, excess contribution return fees, card replacement fees, and paper statement fees that many other providers charge. The only potential fees you could pay in your HSA are: If you select a Fidelity Go HSA, a type of managed account, it charges a fee once your HSA account balance reaches $25,000 or more. Fidelity has more investment options than any other HSA provider we found. When you have a Fidelity Brokerage HSA, you can choose from Fidelity’s wide variety of stocks (including fractional shares), bonds, mutual funds, ETFs, and short-term investments. Fidelity even offers index funds with no expense ratio. In all, it has more than 10,000 funds to choose from. In addition to its broad range of investment options, Fidelity offers two dedicated HSA funds: the Fidelity Health Savings Fund—a mix of active and index funds—and the Fidelity Health Savings Index Fund. However, these both come with management fees. Most HSA providers have a minimum balance you must reach before you can start investing. This HSA minimum typically is $500 or $1,000 but can go as high as $3,000. You have to keep that balance in the account without investing it; you can only invest amounts above that minimum. Some providers waive balance requirements if you’re willing to pay a fee. Fidelity has no minimum balance requirement to start investing money in a self-directed HSA, and no fee. That means you can start investing as soon as you have money in your account, whether in a low-risk, short-term investment or directly in the stock market. If you want to let Fidelity help you manage your HSA funds, there is an extremely low $10 minimum requirement for the Fidelity Go HSA. In addition to the option to invest your HSA balance, providers offer an interest return on the money you choose not to invest. Fidelity offers a far higher interest rate than any of its HSA competitors. While its rate isn’t competitive with top high-yield savings accounts, it allows your cash to earn more than you could with any other HSA account provider. In addition to its high interest rates, Fidelity’s HSA offers other benefits, making it an excellent spending account. You’ll get an HSA debit card, which is standard for most HSAs. You can also pay medical bills directly with Fidelity Bill Pay or reimburse yourself for expenses you’ve covered. Pros & Cons Pros No ongoing account fees Wide range of investment options No minimum balance to invest High APY in spending account Cons Fidelity Go (managed account) fee for large account balances Can take 3 to 10 days for withdrawals of invested funds Fidelity Health app relies on your tracked and linked data Overview Fidelity is among the best overall online brokerage firms, offering a wide variety of investment options with low fees and a powerful trading platform. The company serves more than 43 million individual investors, with $11.5 trillion in assets under administration as of September 2023. Fidelity offers a wide variety of financial services for investors, including financial planning, advice, and education. Customers can get help through more than 200 investor centers throughout the U.S., including at the Boston headquarters. Fidelity's advantages include no or limited account fees, no account minimums for retail brokerage accounts, and commission-free trading. Regarding fees, Fidelity revolutionized the financial industry by introducing zero-expense-ratio funds available to all investors, including HSA investors. As of 2023, Fidelity had $16 billion in total HSA assets; HSAs are just one aspect of the firm’s overall health-related business, which includes flexible spending account (FSA) management and Medicare services. According to the company, nearly half of the Fidelity platform assets are invested. Why We Chose It HealthEquity is the best option for individuals who want a robo-advisor service to help them invest their HSA balance. HealthEquity offers three investment options. While one is a self-directed account, the other two offer partial or total automatic account management. First, the AutoPilot option is a full-service robo-advisor. Once you answer a few basic questions, it will automatically build and rebalance your portfolio. It’s an entirely hands-off approach to investing in your HSA. Investors who want a hybrid approach can opt for the GPS option. Like AutoPilot, GPS will suggest investments based on your answers to a few basic questions. However, whether you choose those investments and what you do with your account in the future is up to you. Pros & Cons Pros Multiple robo-advisor options No monthly maintenance fee Access to low-cost Vanguard funds Cons $25 account rollover fee $500 minimum balance to invest Relatively few investments to choose from (31 funds) Overview HealthEquity was founded in 2002 to give Americans more control over their healthcare. Unlike some other popular HSA providers, it has a sole focus on providing healthcare benefits, both to individuals and to businesses. As of 2023, HealthEquity served more than 14 million members. More than 120,000 organizations used HealthEquity to offer healthcare benefits to employees. HealthEquity’s other healthcare products include flexible spending accounts and health reimbursem*nt arrangements (HRAs). Since acquiring WageWorks in 2019, the company has facilitated other employee benefits such as dependent care, commuter, lifestyle, COBRA, and more. Why We Chose It Bank of America is an excellent HSA option for someone with a deposit account through Bank of America or who prefers to work with a big bank for their HSA. It has all the benefits you’d expect of a major bank, including 24-hour customer service, a mobile app, and the ability to connect your different types of Bank of America accounts. Additionally, though it charges a monthly account management fee and an account transfer fee, it doesn’t have some of the costs other HSA providers charge. For example, the monthly management fee includes replacing your HSA debit card and receiving a quarterly paper account statement. Pros & Cons Pros Links to other Bank of America accounts Multiple phone or in-person support options Digital tools and features Cons $2.50 monthly fee and $25 transfer fee $1,000 minimum balance to invest Relatively few investments to choose from (40 funds) Overview Bank of America was founded in 1904 by the son of an Italian immigrant who marketed to unbanked immigrants as a way to keep their money safe. Though initially founded as Bank of Italy, it changed its name to its current name—Bank of America—in 1930. Today, Bank of America is the second-largest bank in the United States, falling behind only JPMorgan Chase Bank. It has thousands of branches around the U.S. Bank of America offers everything you’d expect of a major national bank, including deposit accounts, credit cards, loans, investing services, and more. Because an HSA isn’t a service many larger banks offer, Bank of America’s HSA is a clear choice for customers who prefer to work with a big bank. With dozens of HSA providers on the market, one clear winner is Fidelity. It beats out other companies in most categories, including as it relates to fees, interest rates, and investment options. It may be especially attractive for investors who already use Fidelity and like its interface and low-cost fund options. However, Fidelity isn’t necessarily right for everyone. For example, HealthEquity is one of the most popular HSA providers and is an excellent option for those who want robo-advisory services and a curated list of Vanguard investments. On the other hand, Bank of America is an excellent option for existing Bank of America customers or anyone who prefers to work with a big bank. A health savings account (HSA) is a tax-advantaged account specifically designed for healthcare expenses. This type of account allows you to set aside pre-tax money each year. In 2024, an individual can contribute $4,150 to their HSA and a family can contribute up to $8,300. You can withdraw your funds tax-free to pay for qualified medical expenses at any point in the future. “An HSA works almost like a 401(k) plan as your contributions are made pre-tax, meaning that your contributions reduce your taxable income,” says Jamieson Hopp, a certified financial planner with Millennial Wealth, LLC. These accounts have what’s known as a triple-tax advantage. In addition to the tax-free contributions and withdrawals (as long as you spend the money on qualified healthcare expenses), you can also invest the money in your HSA and have tax-free investment growth. “The growth on the account is tax-deferred, meaning any capital gains, interest, or dividends are not taxed within the account,” Hopp says. Health savings accounts are the only tax-advantaged account that offers this triple-tax advantage. While retirement accounts such as 401(k)s and Roth IRAs offer tax advantages, they only apply to your contributions or withdrawals, not both. To open and contribute to an HSA, you must be enrolled in a high-deductible health plan (HDHP) and not covered under any other health insurance or enrolled in Medicare. The threshold for an HDHP is adjusted each year to account for inflation. In 2024, an HDHP’s requirements are: These amounts change over time due to inflation. For example, 2024’s amounts are an increase from 2023. In 2023, the individual coverage limit was $1,500, and $3,000 for family coverage. The out-of-maximum was $7,500 for individual coverage and $15,000 for family coverage. You can set up your HSA on the first day of any month when covered under an HDHP. Many employers offer HSAs, which you can set up when you sign up for your benefits. However, you can also sign up for your own HSA through a third-party provider anytime. Every HSA offers the same essential benefits of the triple-tax advantage and the ability to spend the money in your account on qualified medical expenses. However, once you look past those standard HSA features, you’ll find significant differences from one provider to the next. Be thorough when researching and selecting an HSA. Many HSA providers charge a fee to transfer money out of the account, and choosing the right provider the first time helps you avoid this added cost. Here are a few things to look for in an HSA: Account Fees First, consider what fees you’ll pay on an HSA. Some providers charge a monthly management fee, while others don’t. Other standard fees may apply for transferring money from your account, removing excess contributions, receiving paper statements, and more. Interest Earnings on Cash Most HSA providers offer a modest APY on the uninvested money in your HSA. If you plan to keep a large sum of money in your HSA and don’t plan to invest it, you may want an account with a higher APY. Investment Options Besides serving as a savings account, an HSA can also serve as an investment account. If you plan to invest your HSA balance, especially for long-term savings, consider each provider's investment options. Some may only have a small menu of mutual funds, while others offer thousands of different investments. Customer Support If you ever need help with your HSA, you’ll thank yourself for choosing a provider with excellent customer support. Consider looking for a provider that offers the type of communication you prefer (phone, online chat, email) at hours that work for you, and has support tools that will benefit you. Expense Management Managing healthcare receipts—which can be submitted decades in the future—can quickly become a new type of consumer headache. Ensure your HSA plan offers some type of app or tracking system for documenting expenses as they occur. HSAs can be powerful financial tools when used correctly, mainly thanks to their tax advantages and investment opportunities. Here are a few steps to maximize your HSA for the most benefit. Contribute as Much as You Can Ideally, you’d be able to contribute up to the IRS limit for HSA contributions to fully enjoy this account's tax benefits. However, even if you can’t contribute $4,150 in 2024 (or $8,300 if you have a family), contribute the most your budget will allow. Remember that you reduce your taxable income by the same amount for each dollar you contribute to your HSA in a year. As a result, you’ll have a lower tax bill at the end of the year. Take Advantage of an Employer Contribution Around 83% of employers offer a contribution to employee HSAs, according to October 2023 research from the Kaiser Family Foundation. On average, employers contribute $657 annually to single-coverage employee HSAs. Most firms contribute between $400 to $799 annually. However, your account contribution limit is the same whether the contributions come from you or your employer. “If your employer contributes to the HSA, you will need to reduce your maximum contribution by [the amount of] their contribution,” says Hopp. Consider a Long-Term Savings Strategy The real purpose of an HSA is to help individuals and families with high-deductible health plans save for medical expenses. However, you don’t necessarily have to use yours that way. Many people pay medical expenses out of pocket and use their HSAs as a long-term savings tool. “It is generally best to pay your ongoing medical expenses out of pocket while you can and let the HSA grow over time, as your account balances that aren’t used will roll over year over year,” says Hopp. “There is no use-it-or-lose-it stipulation with an HSA.” An HSA can be an excellent addition to your retirement savings strategy. Not only can you use the money in your HSA for healthcare expenses during retirement, but you can also access it penalty-free once you reach age 65—you’ll just have to pay income taxes on any money not used for qualified medical expenses. Invest Some or All of Your Balance As we’ve discussed, most HSA providers allow you to invest your HSA balance. You may have a minimum balance requirement before you can invest. But once you fulfill that requirement, you can invest the remainder of your contributions into mutual funds and other securities. The investments you choose from depend heavily on your chosen provider. Some HSA providers offer only a handful of mutual funds, while others offer you the choice of thousands of stocks, bonds, funds, and more. No matter what you decide to do with your HSA contributions, choosing investments that correspond to your goal is important. For example, if you take a long-term savings approach with your HSA, you might decide to invest in various stock funds, including those with an added level of risk. Or you can choose target date funds according to your future retirement year. You can afford the increased risk thanks to the long time horizon until you retire. Don’t invest money you plan to use for healthcare expenses this year. Instead, take a lower-risk approach, such as keeping your HSA balance in your provider's cash account. Avoid Spending on Non-Qualified Expenses An HSA’s key benefit is its tax savings. However, you can only enjoy the full tax benefits of the HSA if you follow the withdrawal rules. To maximize your HSA, avoid spending on non-qualified expenses. Any money withdrawn for purposes other than qualified medical expenses will be subject to income taxes and a 20% additional tax. Here’s how our top picks stack up against the competition. Table includes the interest paid on $4,300, the average amount most U.S. adults have in their HSA account. *Lively charges this annual fee if you don’t keep $3,000 in your cash account and wish to invest. The first major downside to an HSA is that you can only spend money on qualified medical expenses. If you max out your contributions and have another financial emergency, you can’t get that money back without financial penalties. Another downside of HSAs is that only people with high-deductible health plans are eligible. And while an HSA can be a powerful tax-savings tool, some people may choose a health plan that’s not in their best interest just to qualify for an HSA. To open and contribute to an HSA, you must have a high-deductible health plan (HDHP). In 2024, that’s any individual coverage plan with a deductible of $1,600 or more and an out-of-pocket maximum of $8,050 or less. If you have a family plan, the requirement is a deductible of $3,200 or more and an out-of-pocket maximum of $16,100 or less. The money in your HSA is yours to keep. If you switch to a different HSA provider, you can simply roll the balance of your old HSA into your new one. However, many providers charge fees to close your account or transfer your balance. For an HSA withdrawal to be tax-free, it must be used to pay for a qualified medical expense. While you can withdraw money for other reasons, any distributions not used to pay for qualified medical expenses will be subject to ordinary income taxes and a 20% additional tax. The rules change once you turn 65 or if you become disabled. In those cases, you can access the money in your HSA at any time with no additional tax. However, using HSA funds in retirement for something other than a qualified medical expense will still be subject to ordinary income taxes. The amount you can contribute to an HSA changes each year. In 2024, you may contribute $4,150 for an individual healthcare plan or $8,300 for a family healthcare plan. This is an increase from 2023 when $3,850 was the individual plan limit and $7,750 was the family plan limit. Article Sources Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in oureditorial policy. Fidelity. "We Are Fidelity." Fidelity. "As Health Care Complexity Persists, Fidelity Health Brings Simplicity to Employers and American Savers." Bank of America. "Bank of America: The Humble Beginnings of a Large Bank." Internal Revenue Service. "Internal Revenue Bulletin: 2023-22." Internal Revenue Service. "Rev. Proc. 2022-24." Kaiser Family Foundation. "2023 Employer Health Benefits Survey." Internal Revenue Service. "Instructions for Form 8889 (2023)."Best Health Savings Account (HSA) Providers of 2024
Best Overall, Best for Low Fees, Best for Investment Choices, Best for No Minimum, Best Spending Account : Fidelity
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Best for Low Fees
Best for Investment Options
Best for No Minimum Balance Required
Best Spending Account
Best for Investment Help : HealthEquity
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Best for Bank of America Customers : Bank of America
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The Bottom Line
Guide to Choosing the Best Health Savings Account
What Is a Health Savings Account and How Does It Work?
When Can You Apply for a Health Savings Account?
Single Family Deductible Minimum $1,600 $3,200 Out-of-Pocket Maximum $8,050 $16,100 What to Look for in a Health Savings Account
Tips for Maximizing Your HSA
Compare Health Savings Accounts
HSA Provider Interest APY on $4,300 Monthly Fee Account Transfer Fee Minimum Required to Invest Investments Available Fidelity 2.69% None None None Stocks, bonds, mutual funds, ETFs, robo-investing HealthEquity 0.05%-.09% None $25 $500 Mutual funds, robo-investing Bank of America 0.30% $2.50 $25 $1,000 Mutual funds Lively 0.02% $0 or $2/ monthly None $3,000 Stocks, bonds, mutual funds, and ETFs via partner Schwab Health Savings Brokerage Account, plus robo-investing via Denevir Associated Bank 0.15% $2.00 None $1,000 Mutual funds First American Bank 0.25% None $25 $1,000 Mutual funds, or stocks, bonds, mutual funds, and ETFs via partner Schwab Health Savings Brokerage Account HSA Bank 0.05% $2.50 $25 $1,000 Stocks, bonds, mutual funds, and ETFs via partner Schwab Health Savings Brokerage Account, plus robo-investing via Denevir Optum 0.01% $1.00 $20 $2,000 Mutual funds or robo-investing with Betterment Saturna 0.05% None $25 $500 Mutual funds UMB 0.15% None $25 $1,000 Mutual funds, money market funds Frequently Asked Questions
Is There a Downside to an HSA?
What Are the Eligibility Requirements for Opening an HSA?
Can I Roll Over Funds From an Existing HSA to a New Provider?
Are There Any Restrictions on HSA Withdrawals?
How Much Can I Contribute to an HSA Annually?
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See Also
Millennial millionaires are maxing out an investment account that offers a triple tax benefit. Here's how it works and who's allowed to open one.How To Invest With Your HSA, And Why - NerdWalletHealth Savings Account (HSA): How HSAs Work, Contribution RulesHealth Savings Account | HSA Benefits | Fidelity Investments What Are the Pros and Cons of a Health Savings Account (HSA)? Health Savings Account (HSA): How HSAs Work, Contribution Rules Why You Should Consider an HSA Even If You're Not Rich Health Savings vs. Flexible Spending Account: What's the Difference? How High-Deductible Health Plans Work How to Save for Retirement Without a 401(K)
FAQs
Best Health Savings Account (HSA) Providers of 2024? ›
Our experts chose Fidelity because the brokerage offers two HSAs and multiple ways to invest, including with the help of a robo-advisor. While most HSAs require you to pick your investments, Fidelity has a self-directed option (Fidelity HSA) and a managed, robo-advisor option (Fidelity Go HSA).
Which bank has the best HSA account? ›Our experts chose Fidelity because the brokerage offers two HSAs and multiple ways to invest, including with the help of a robo-advisor. While most HSAs require you to pick your investments, Fidelity has a self-directed option (Fidelity HSA) and a managed, robo-advisor option (Fidelity Go HSA).
What is the maximum HSA contribution for 2024? ›The IRS announced the HSA contribution limits for 2024. Individuals can contribute up to $4,150 to their HSA accounts for 2024, and families can contribute up to $8,300.
How do I choose the best HSA? ›Select an HSA provider with low or no transaction fees, ensuring cost-effectiveness in managing your healthcare expenses. If you plan to invest your HSA funds, be aware of any investment-related fees. Compare these fees among providers to choose an option that aligns with your investment strategy.
What's one potential downside of an HSA? ›The main downside of an HSA is that you must have a high-deductible health insurance plan to get one.
Can I choose my HSA provider? ›If you are an employee in an HSA-eligible/high-deductible health insurance plan, you can save and invest your HSA assets — the employer and employee contributions — with any provider you choose, not just the one your employer offers.
Can I open an HSA account with any bank? ›If an HSA does not come with your HDHP, you can set up the account on your own. 1 Banks, credit unions, and brokerages all offer HSAs. Each HSA provider can create its own terms. HSAs through a brokerage even allow you to invest your contributions in stocks, bonds, or funds.
What is the 13 month rule for HSA? ›Use the 13-month rule to make up for lost time
You can contribute the full amount to your HSA if you meet the following conditions: Enroll in an HSA-eligible HDHP before December 1st of the given year. Maintain that HDHP coverage through December 31st of the following year, for a total of 13 months.
The 2024 HSA contribution limits are as follows: 2024 HSA contribution limits: An individual with coverage under a qualifying high-deductible health plan (deductible not less than $1,600) can contribute up to $4,150 — up $300 from 2023 — for the year.
Should I max out my HSA every year? ›Max out your contributions if you can
The more you can contribute, the more you can benefit from the HSA's potential triple tax advantages1. Keep in mind: you don't lose any unspent funds at the end of the year. Your HSA can be used now, next year or even when you're retired.
Is Fidelity good for HSA? ›
Fidelity gives you broad investing options, including our Fidelity HSA Funds to Consider. These are professionally selected funds for HSA investing, all with waived investment minimums and no transaction fees.
Why not to choose HSA? ›The Downside of HSAs
HSAs might not make sense if you have some type of chronic medical condition. In that case, you're probably better served by traditional health plans. HSAs might also not be a good idea if you know you will be needing expensive medical care in the near future.
Monthly account fees for HSAs are generally less than $5, and many HSA administrators have no monthly fee at all. And it's common for monthly account fees to be reduced or waived if you maintain a minimum account balance, which is usually in the range of $1,000 to $5,000.
Can you use HSA for dental? ›HSAs can help pay for a variety of dental services and orthodontic procedures. Here are some of the specific dental procedures your HSA can help cover: Crowns (when non-cosmetic, and may need a letter of medical necessity (LMN)) Sealants (if used for the prevention or treatment of a dental disease)
Can my HSA lose money? ›Myth #2: If I don't spend all my funds this year, I lose it. Reality: HSA funds never expire. When it comes to the HSA, there's no use-it-or-lose-it rule. Unlike Flexible Spending Account (FSA) funds, you keep your HSA dollars forever, even if you change employers, health plans, or retire.
Is an HSA worth the hassle? ›Using an HSA can save an average of $955 per year in taxes for individuals or $1,909 per year for families. The downside is that your insurance plan will likely pay for less of your medical expenses because you'll need a high-deductible health plan to contribute to an HSA.
What bank does HSA Bank use? ›As of March 31, 2024, HSA Bank had $13.8 billion in total footings comprising $8.6 billion in deposit balances and $5.2 billion in assets under administration through linked investment accounts and is a division of Webster Bank, N.A., Member FDIC Plan Administrative Services and Benefit Services are administered by ...
Who has a free HSA account? ›With Fidelity, there are no account fees or minimums2 and your money has the potential to grow. We've put together a quick comparison to show how much harder your money could work for you when you choose a Fidelity HSA compared to other HSA providers.
Should I link my bank account to my HSA? ›Connecting your bank account to your Health Savings Account
This comes in handy when you want to make a catch-up payment for the tax year. Or maybe you've come across some extra funds and want to safe-keep them in your HSA. Whatever your reason, it's a quick and easy way to transfer funds.
Earlier this week, JPMorgan inked an agreement with Webster Financial to sell its health saving account business to the latter's HSA Bank division. The deal will see 700,000 accounts changing hands and includes $1.3 billion in deposits and $175 million in investments currently held by JPMorgan Chase Bank.