Lively HSA Review: A Straightforward Free HSA Service

Updated: 29th Sep 2021 Written by Jordan Blansit
Share this article
APR vs APY
APR vs. APY: What Are the Differences?
What Is APY
What Is APY? How Annual Percentage Yield Works

Disclaimer: This post contains references to products from one or more of our advertisers. We may receive compensation (at no cost to you) when you click on links to those products. Read our Disclaimer Policy for more information.

It seems like every year, especially every four years, we talk about the rise in healthcare costs but implement little to no actions to reduce it.

Approximately 140 million people are struggling with medical debt, accounting for more than 60% of all bankruptcies in the USA!

Each year more than 500,000 families turn to bankruptcy because of medical issues, per CNBC. “Lively” has set out to help with this crisis and is now one of the best HSA accounts.

What Is Lively?

Lively is the number one user-rated Health Savings Account (HSA) provider that helps people prepare for tomorrow by making smart decisions about finances and healthcare today!

Their goal is to help consumers budget for rising medical costs while educating them on ways to do so while also receiving tax benefits for doing it.

Lively HSA
Image Source: Lively.com

How Does Lively Work?

Lively allows you the flexibility of contributing to your HSA with one-time or recurring payments. To do this, you can link your bank account or work with your employer to set up contributions via their payroll to you.

When you add funds to your HSA, you get to decide if you would like the funds held in Choice Financial, a Member FDIC bank (insured up to $250,000) earning interest or have your funds self-managed in a TD Ameritrade account.

As of 2021, you can contribute up to $3,600 in an Individual plan, up from $3,550 in 2020, and up to $7,200 in a family plan that is up from $7,100 in 2020. If you are older than 55 years of age, you can add an additional $1,000 to your HSA account.

Please note, if you decide to self-manage the funds in a TD Ameritrade (TDA) account, and you already have a TDA account, you will need to keep the funds separate.

>> More: Difference Between HSA and FSA

Lively Features and Benefits

  • Automatic Contributions: You have two ways you can contribute to your Lively HSA automatically. One way is to link your bank account and allow Lively to deduct funds on a schedule. Another way is to work with your employer payroll department to send part of your salary to your Lively HSA account each time you are paid.
  • Easily Transfer Between HSAs: To be eligible for an HSA, you must already have funds in an HSA account or an HSA high-deductible compatible health plan. You can then easily transfer between HSAs. Lively does not charge any fees when transferring an HSA account to them.
  • Categorize Receipts: Lively provides easy access to tools you need to use your HSA funds on eligible expenses and track your expenditures.
  • Track Spending in Real-Time: Lively offers an intuitive app that allows you to track HSA spending in real-time. You can also see what you have paid and what remains for your health plan deductible and out-of-pocket costs.
  • Useful Debit Card: Lively gives you up to three debit cards at no cost. You can use your debit cards at your doctor’s office, pharmacy, and other qualified providers. Take it a step further and add the debit card to your mobile “wallet” so you always have access to your HSA funds!
  • No Hidden Fees: Lively does not charge any fees for individuals nor families. Furthermore, there are no cash minimums for your HSA account.
  • Customer Support: Lively customer support is readily available. Monday through Friday between 6 AM to 6 PM Pacific, you can reach them via phone, email, or live chat. You can also search their Resource Center, HSA Guide, and blog for commonly asked questions on their website.
  • Robust Security: Lively states, “the only thing more valuable than your money is your personal information”. This is why Lively offers numerous security features such as HIPPA Compliance, AES 256 Disk Encryption, SSL/TLS – Hashed Passwords and Encrypted Access on the website, Two-Factor Authentication, and Data Security Architecture.
  • The Lively Marketplace: If Lively was not already great enough, they went and created a “marketplace” of other health providers in which you can get exclusive discounts on health products.

Lively Account Types

Lively has four different account types.

Individuals

Lively is free to individuals and families. They make it easy to fund your HSA account while giving you access to exclusive deals from health providers such as Amazon’s pharmacy Pill Pack.

Lively also gives you and your family up to three debit cards, for free, that allows you to use your HSA funds anywhere Visa is accepted while giving you the tools to monitor your HSA account.

Employers

Lively simplifies HSA setup with employers so they can offer the program to their employees. Lively does this by automating the manual and tedious tasks it normally takes to set up an HSA program.

Furthermore, Lively gives employers a dashboard to manage the company’s HSA program 100% online.

Employers gain access to tools such as paperless onboarding, contribution management, and dedicated support within the dashboard.

Brokers

Lively built their proprietary payroll syncing capabilities from the ground up. This has allowed Lively to sync with most major online payroll systems and accept eligibility and contribution files.

Lively is able to provide brokers with a 100% user-centric HSA platform that enables easy sign-up, payroll syncing, and paperless management.

Partners

Lively built their platform with partners in mind. Building an innovative, proprietary platform allows partners to integrate seamlessly.

They offer friction-free integrations, better workflows, and optimized health plan engagement while not competing with any partners.

Lively Pricing

Lively offers two different pricing plans.

Individuals

Individual and family plans are 100% free. Your funds stay in an FDIC insured, interest-bearing account, with no cash minimum to invest.

Employers

Lively streamlines HSA programs for employers. They also supply the employers with an intuitive dashboard, contribution management tool, and personalized investment options. They offer all of this and more for only $2.95 per employee per month!

Who Is Eligible to Open a Lively Health Savings Account?

To be eligible for a Lively Health Savings Account, you must currently have an HSA with funds or have a high-deductible health insurance plan that allows HSA contribution.

Lively HSA Investment Options

Lively has two investment options for your HSA contribution. The first option is to keep your funds with their partner, Choice Financial, where you can earn interest on your funds.

Since Choice Financial is a Member FDIC, your HSA is fully insured. The second option is if you would like to self-manage your HSA funds.

If you choose this option, you will need to put funds in a TD Ameritrade (TDA) account. It is worth noting that if you have any other account with TDA, your HSA funds need to stay separate.

Alternatives to Lively

#1. HealthSavings Administrators vs. Lively HSA

HealthSavings Administrators has been around since 1997 when Medical Savings Accounts (MSAs) were popular.

When HSAs were introduced, HealthSavings focused on them. HealthSavings refers to itself as an “investor HSA”. This may be why they have a minimum threshold of $1,000 for individual and family plans.

They offer more than 40 different investment options for your HSA account. Although one of those investment options is interest-bearing accounts, your HSA account will not qualify for interest unless you have more than $5,000 in it.

#2. Lively HSA vs. Fidelity HSA Account

Fidelity states that anyone with an existing HSA is eligible to spend, invest, or transfer that money at any time, even if no longer covered by an HSA-eligible plan.

Ever since HSAs came out in 2003, Fidelity had only offered them via an employer program. However, they have now entered the individual HSA industry and became the first large investment brokerage to do so.

They enter the individual HSA market while offering no minimum balance, no opening fees, and no monthly maintenance fees.

#3. HSA Authority vs. Lively HSA

Backed by Old Nation Bank, HSA Authority was one of the early adopters of the HSA program, and today they cover all 50 states.

Their target audience seems to be more institutions, and thus they are more fee-driving with an annual fee of $36.

There are also restrictions on what accounts you can invest in as you are not given that possibility until your account has at least $1,000 in it.

Frequently Asked Questions

Is Lively HSA Legit?

Not only is Lively HSA legit, but they are one of the most trusted HSA providers in the country.

Does Lively HSA Have Monthly Fees?

Lively HSA offers two different types of payment plans. For the individual/family plans, there are no fees at all. For the employer plan, the fee is $2.95 per employee per month. That fee comes with all the tools the employer needs to distribute and monitor employee HSAs.

Is Lively HSA FDIC Insured?

Yes! Lively is back by Choice Financial, which is a Member FDIC.

Bottom Line: Lively HSA Review

Lively HSA provides numerous benefits to both individuals and employers. Lively has removed any obstacles and confusion when it comes to HSAs.

They have done this while offering a growing marketplace that is filled with health providers offering exclusive healthcare discounts and at a fee of $0 to individual/family plans and just $2.95 per month per employee for employer plans.

It is no wonder why Lively is considered one of the leaders in the HSA industry.

Keep Reading:

Jordan Blansit
Jordan Blansit

Jordan Blansit is a Senior Writer, Researcher, & Product Analyst for SimpleMoneyLyfe with an inexplicable predilection for mortgages, investing, and personal finance. When she’s not click-clacketing from the comfort of her living room, you can find her in the California Redwoods or Oregon Siskiyous. Jordan’s areas of expertise are mortgages, personal loans, credit cards, and investing.