11 Best Health Saving Account (HSA) Providers

Banking
Updated: 29th Jun 2021
Written by Kim Pinnelli
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Banking
June 29, 2021
Written by Kim Pinnelli

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A health savings account (HSA) helps you cover medical expenses. With today’s high medical expenses and the thought of them increasing as you age, it’s important to set you and your family up with a plan that saves for the unexpected, allowing you to focus on your health and not worry about the financial part of it.

There are many HSA accounts to choose from; here are the best HSA accounts available today.

Best HSA Accounts

#1. Lively

If you’re looking for an HSA with no fees, Lively may be your answer. They don’t charge monthly maintenance fees, account opening fees, or transfer fees. They also don’t have hidden fees, making your money work harder for you.

Best Health Saving Accounts

Lively is completely online, but you can easily manage your funds on your PC or their user-friendly mobile app.

The app also makes it easy to keep track of your healthcare spending, account balance, and how much you’ve spent toward your deductible

Pros:

  • No fees (not even hidden fees)
  • Manage your account 24/7 from home
  • Includes a debit card to easily pay your medical bills
  • Can choose to invest your funds with TD Ameritrade
  • Earn a small APY if you leave a cash balance

Cons:

  • Investing your funds may cost up to 0.5% of the balance
  • A relatively new company (opened in 2016)

What We Like

We love the no-fee structure Lively offers. We spend so much of our money on fees and unnecessary expenses that it’s nice to see our money put to its intended use (paying for healthcare expenses).

We also love its user-friendlies. It takes just seconds to open an account from your computer or phone, and you’re all set to save for healthcare expenses without leaving your home.

>> Learn More: Lively HSA Review

#2. HealthSavings Administrators

If you want an investment-focused Health Savings Account, HealthSavings Administrators offers a solid option.

They invest your money in Vanguard funds, which is advantageous since there aren’t any trading fees and they carry low expense ratios.

HealthSavings Administrators offers plenty of educational opportunities to help you choose the right investment for your funds, and they’ve been around since 1996 but started offering HSA accounts when they originated in 2004.

Pros:

  • No minimum account balance required
  • Includes a debit card to easily pay your medical bills
  • A large number of investment options
  • Low funding fees compared to competitors
  • Pays interest on cash balances over $25,000

Cons:

  • You must be willing to invest your funds rather than let them sit in a cash account
  • You’ll pay an expense ratio for any investment
  • The HealthSavings Administrators website isn’t transparent about the fees

What We Like

Letting your money sit in a cash account feels safe, but it doesn’t let your money grow.

HealthSavings Administrators gives you the best of both worlds – you put money aside tax-free for health expenses, and it can grow by investing it in low-cost investments.

#3. HSA Authority

HSA Authority is part of Old National Bank, which has a rich history starting in the 1800s. Members can open an HSA Authority checking account, but once you have $1,000 saved, you can invest the funds to help them grow further.

HSA Authority is a great option for families because it allows more than one owner. All owners can manage the account.

The ‘main’ owner can delegate tasks to others keeping everyone on the same page and keeping all money in one account.

Pros:

  • Can conduct all business online or the mobile app
  • Make deposits using the mobile deposit feature
  • Includes a Visa debit card for easy payment options
  • Easy to share with a spouse or other family members, so everyone is on the same page
  • Can invest in low-cost mutual funds

Cons:

  • Must have at least $1,000 in the account to invest it
  • Has a $36 annual cost for the investment portion of the account
  • Takes up to 5 business days to open an account

What We Like

We love the transparency of HSA Authority, especially with the ability to have multiple log-in credentials for one account.

Everyone can be on the same page, and multiple parties can manage the account, taking the stress off just one spouse or partner.

While you need $1,000 to invest in their partner’s mutual funds, the expense ratios are low, and the account is easy to manage online, on the mobile app, or even with text banking.

#4. HSA Bank

HSA Bank was once a community bank that dated back to the early 1900s, so it has plenty of history in the banking industry.

Today, they primarily offer HSA and FSA accounts. Like most HSA providers, HSA Bank offers an investment option, but you can keep a cash balance too and earn a fixed interest rate if that feels safer for you.

You can apply for an HSA with HSA Bank online – it takes just 10 minutes. You don’t need a minimum balance to open an account.

Once you have $1,000 saved, you can invest your money with TD Ameritrade or Devinir.

Pros:

  • No minimum balance to open an account
  • Offers a client-services center that’s open 24/7
  • Easy access to TD Ameritrade investment options
  • No minimum balance to earn interest on uninvested cash
  • Available in all 50 states

Cons:

  • Pay $2.50 a month for each month you have a balance lower than $3,000
  • You need at least $1,000 to invest your funds
  • There’s a fee to close your account

What We Like

We like that you have options to manage your funds. Not everyone wants to invest their money, especially if they know they’ll need the funds to cover medical bills soon.

The fixed interest rate ensures your money grows, but you have peace of mind knowing you aren’t losing any money in your investment account.

We also love the client support system that’s available 24/7. There’s nothing more frustrating than having a question during non-business hours and losing sleep over it until you can get a hold of someone.

#5. HealthEquity

If you’re tech-savvy and prefer to do everything on your mobile phone, HealthEquity is a great option.

This mobile-based app allows you to track your account, manage your funds, and even submit claims by snapping a picture of your healthcare bill.

It takes just a few minutes to open an account online, and they don’t charge any fees. If you invest your funds, though, you’ll invest with Vanguard, which charges its own fees separate from HealthEquity. You’ll need $500 before you can invest your funds.

Pros:

  • Mobile capabilities make it easy to manage your account from anywhere
  • No minimum account balance required
  • No account maintenance fees
  • Offers tiered interest rates on cash balances
  • Call or chat capabilities available 24/7

Cons:

  • Investments have fees reducing your HSA balance
  • $25 account closing fee
  • Additional fees if you want investment guidance

What We Like

We love the versatility of HealthyEquity. In today’s day and age, everyone is busy, and convenience is king. HealthEquity makes it easy to set up an HSA and manage it from anywhere.

You can leave your funds in a cash balance or invest it with Vanguard and help your money grow even further.

#6. Fidelity Investments HSA

You know Fidelity for its brokerage accounts, so it makes sense to consider it for an HSA too. You get all the same benefits as companies that strictly offer HSAs offer, but with the benefits of having a Fidelity account.

As you probably guessed, your money is invested in Fidelity index and mutual funds, but they offer other options too.

The nice thing is there are no minimum account balances like Fidelity has for its traditional investment accounts, and there are no transaction fees.

If you’re looking for investment guidance, you’ll find that here too – although it’s a self-directed account, you can get help to make your choices.

Pros:

  • Wide selection of investment options, including exclusive Fidelity investments for HSA holders
  • Low investment costs and expense ratios
  • No monthly management fees
  • No minimum balance required
  • State-of-the-art customer service

Cons:

  • Investment fees aren’t very transparent until you invest in them
  • Low APY on cash balances
  • You must rebalance your investments when they get off course

What We Like

We like Fidelity because of its reputation. We know we can trust it, and with no fees or minimum balance required, what’s not to love?

If you already have a Fidelity account, it’s great to have all your investments in one place so you can manage them easily and know where you stand.

#7. Further

Further has three HSA programs for individuals (they have employer programs too). All three programs charge a monthly fee of $1 – $4 per month plus the investment costs if you invest in index funds, mutual funds, or stocks via Charles Schwab.

Further pays tiered interest rates on account balances based on your chosen program (Value, Select, or Premium).

Interest rates start at 0.05% and go up to 0.70% on the highest balances if you have a premium account.

Pros:

  • Provides ample resources to manage all your healthcare expenses, savings, and investments in one place
  • High-quality customer service
  • Extensive learning center to help you learn more about HSAs
  • Access to low-cost Charles Schwab investments
  • Options to choose the account that suits your budget

Cons:

  • The monthly fee takes away from your investments
  • The investment fees aren’t transparent until you invest
  • Focuses more on employer-sponsored HSAs than individual

What We Like

We like the higher interest rates Further pays on cash balances versus other companies who push you to invest your funds.

We also like the experience they have since they handle a large number of employer-sponsored HSAs and then tailor their benefits for individuals accordingly.

#8. Bank of America HSA

Bank of America is one of the country’s best-known banks, so it makes sense to trust their HSA too. Like most HSA companies, you can manage your account on the mobile app or online and have easy access to your funds to pay your medical bills.

Pros:

  • Easily access your funds via check, electronic transfer, or debit card
  • A trusted name in the banking industry
  • Options to invest using Vanguard and other big names
  • Access to a members-only website that makes it easy to submit claims and manage your funds
  • Customer service available 24/7

Cons:

  • Charges a $2.50/month fee
  • Need at least $1,000 in the account to invest in mutual funds
  • Smallest investment selection

What We Like

If you already bank at Bank of America, it makes sense to keep your money all in one place as it’s easier to manage.

Bank of America pays minimal interest on cash balances, but that goes with the territory since the pandemic occurred. If you have over $7,500 in your account, you’ll earn a higher APY, though.

#9. DCU Credit Union

If you like the benefits of credit unions, check out DCU Credit Union for your HSA. With no monthly fees and high APYs, it’s easy to see why its members love it.

The dividends (interest) compound daily and are paid monthly, and you get a Visa debit card to pay your medical bills.

It comes with unlimited check writing abilities if you prefer to pay via check and has a free mobile app to make it easy to manage your account.

Pros:

  • No monthly fees
  • High APY that increases with higher balances
  • No minimum balance required
  • Access to online and mobile banking
  • Unlimited check writing

Cons:

  • No investment options
  • You must be a member
  • Customer service only during business hours

What We Like

We like how easy it is to use DCU Credit Union. The HSA account offers high interest rates and no fees, making your money go further.

Whether you’re using the funds for current medical expenses or saving them up for retirement when medical bills naturally increase, it’s an easy and convenient way to save your funds.

#10. Affinity Credit Union

Affinity Credit Union offers a basic HSA account that doesn’t charge monthly fees and doesn’t have a minimum deposit requirement.

You can earn higher APYs since it’s a member-owned credit union, but you must be a member of the credit union.

A unique feature they offer is direct deposit, allowing you to split up your paycheck between your regular checking and your HSA, so you don’t forget to fund it.

Pros:

  • Includes a Visa debit card
  • No minimum deposit required
  • No monthly charges
  • Can set up direct deposit
  • Offers high APYs

Cons:

  • No check writing
  • No investment options
  • You must be a member

What We Like

We like basic HSA accounts that keep it simple and allow us to earn interest on all of our cash, not forcing us to wait until we hit a certain balance.

We like the direct deposit option, too, since we all know how easy it is to overlook future expenses and instead spend our money now and regret it when we need the money down the road.

#11. First American Bank

First American Bank is a well-known bank that offers an HSA option. Surprisingly, they offer many ‘modern’ features, including a mobile app that allows you to scan product barcodes to determine if a product is HSA eligible.

You get 24/7 access to your account and can manage your investments however you see fit.

Pros:

  • No minimum deposit
  • No monthly fees
  • Includes a debit card
  • Unlimited check writing abilities
  • Offers interest on cash balances and the option to invest

Cons:

  • You need at least $1,000 to invest
  • If you invest, there’s a monthly fee of $2.95
  • Customer service only available during ‘banking’ hours

What We Like

We like the name behind the account since we plan on HSA funds lasting throughout our lifetime.

The included debit card makes it easy to pay for medical expenses, and the low investment balance threshold allows most people to invest shortly after opening an account.

How to Choose the Best HSA Account: 6 Factors to Consider

Here are factors you need to consider when choosing the best health savings account provider.

#1. Easy Access to HSA Account

While you can only use HSA funds for medical expenses, you want the funds easy to access when you need them.

A debit card, check-writing privileges, and online bill pay are all necessary features today. They allow you to pay your bills, access your funds, and make the most of your HSA account.

#2. Low to No Fees

Why pay fees on your own money? Today many accounts have no monthly payments until you get to the investment portion, which is normal since brokers always charge a small fee.

Even if you pay a fee, make sure it’s among the lowest available. All HSA providers offer investment options with similar brokers, so there’s no reason to overpay with one.

#3. Easy Balance Requirements to Maintain

Make the most of your account by opening one that doesn’t have a minimum balance requirement.

With a minimum balance requirement, you could lose out on potential interest or the option to invest if the threshold is high and you can’t meet it.

#4. No Hidden Fees

Watch out for hidden fees, they’ll get you every time. Read the fine print and ask for a disclosure of all fees charged.

They may say ‘no fees’ but then charge for teller transactions, statements, or transfers. Know the full cost of the account before opening it.

#5. Diverse Investment Opportunities

Just like your taxable and retirement accounts, you should have a wide array of options to invest your HSA funds.

Look for options with multiple brokers or at least many investment options within a broker.

#6. Earns Interest

Look at the threshold for your cash balances. Some companies pay interest on all balances. Others only pay it on high balances.

Why let the money sit there without earning interest? Even if it’s a small amount, every penny counts.

Health Saving Account Providers FAQs

Do Banks and Credit Unions Offer Health Savings Accounts?

Both banks and credit unions offer health savings accounts, but not all do. Always ask if they do and what options they offer.

Ask specifically about fees, minimum balance requirements, interest earned, and investment choices.

>> Learn More: The Best Bank Accounts

How Are HSAs and Flexible Spending Accounts Different?

HSAs and FSAs are both medical expense accounts, but only HSAs are for individuals and employer-sponsored groups, whereas FSAs are only for employer-sponsored groups.

Flexible spending accounts also have a use it or lose it plan, meaning if you don’t use the funds in it by year-end, you lose it.

HSA funds stay with you for your lifetime, allowing you to use them whenever you see fit.

>> Dive Deeper: Differences Between Health Savings Accounts and Flexible Spending Accounts

Are Health Savings Accounts Safe to Use?

If you choose a high-quality company with FDIC insurance, your HSA is safe. Just like any bank or investment account, do your research, and ensure you have insurance, the company protects your privacy, and they have good reviews.

Are Health Savings Accounts Worth It?

If you have a high deductible health insurance plan, they are worth it. You get the ‘triple’ tax benefit of contributing funds before tax, letting your earnings grow tax-free, and withdrawing funds for medical expenses is tax-free too.

Do All HSAs Have Monthly Fees?

No, not all HSAs have monthly fees, so it’s important to do your research. Work with a company that doesn’t charge a monthly fee nor that charges a fee if your balance is below a certain threshold.

Can You Invest Funds in an HSA?

Some companies work with brokers, allowing you to invest funds in an HSA, but not all. Credit unions mostly keep your funds within the credit union.

To invest your funds, find out if they invest funds, but each works with a different broker.

Who Can Use an HSA?

You must meet the following to get an HSA:

  • Have a high deductible insurance plan
  • Not be covered under any other insurance (such as a spouse’s plan)
  • Not be covered by Medicare
  • Not be covered by VA insurance
  • Are not a dependent on someone else’s tax return
  • Do not have an FSA

Bottom Line: Best Health Saving Accounts

An HSA is a great way to save money for medical expenses while allowing your funds to grow tax-free.

The money stays with you, and as long as you choose a reputable company, you’ll have easy access to the funds, can manage your investments, and make the most of your funds that someday you’ll likely spend on medical expenses even if it’s not this year or anytime soon.

You can keep the funds through retirement, which is a great benefit for those with high expenses in retirement.

 

Kim Pinnelli
Kim Pinnelli
Kim is a personal finance expert with a Bachelor’s degree in Finance from the University of Illinois at Chicago. She has been freelance writing for 13 years for a number of large publications. Kim thoroughly enjoys helping people take charge of their personal finances.