Best Health Savings Account (HSA) Providers

Health Equity is our pick for the best health savings account (HSA) provider

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Health Savings Accounts (HSA) give applicants a tax-advantaged way to contribute money on a pre-tax basis into an account where it can grow tax-free until it is used for qualified healthcare expenses. In order to open one, you or your family must be covered under a high-deductible health plan. If you’re eligible, you will face contribution limits each calendar year, although these limits tend to be generous. In 2023, individuals can contribute up to $3,850 in an HSA for self-only coverage, and families can contribute up to $7,750.

An HSA can be opened with any provider, and you can opt for coverage for yourself or your family. The best HSA providers are the ones that have no fees and no or low minimum deposits required. These providers also offer debit cards to pay for health expenses and have easy-to-navigate online account management tools.

Best Health Savings Account (HSA) Providers of 2023

Best Health Savings Account (HSA) Providers
Best Health Savings Account (HSA) Providers

Best Overall : HealthEquity


Health Equity

Health Equity

Key Specs
  • Fee: $36 (annual)
  • Mobile App: Yes
  • Debit Card: Yes
Why We Chose It

HealthEquity is our best overall because you can invest in Vanguard funds with low expense ratios, and it provides several features, including a mobile app and no account management fees. The company also offers accounts with no minimum investment threshold, so every dollar you put in your HSA can be invested right away.

Pros & Cons
Pros
  • Invest in low-cost Vanguard funds with no minimum investment threshold

  • Debit card for healthcare expenses

  • Average underlying fund fee of 0.15% for Vanguard fund options

  • Easy-to-use mobile app

Cons
  • Annual maintenance fee varies, but is usually $36 per year

  • Required annual investment fee of 0.25%

Overview

HealthEquity was founded in 2002 and in 2021, expanded its holding by acquiring HealthSavings Administrators and Further, both of which are HSA providers. The transition of HealthSavings' accounts to the HealthEquity platform is expected to be completed by the company's first quarter of the fiscal year 2023.

We chose HealthEquity for our best option overall because not only will it continue to use HealthSavings' model of offering low-cost Vanguard and Dimensional Funds options with its HSAs, but there's no minimum account balance for your funds to be invested. You can also use a simple mobile app for on-the-go account management, including monitoring your spending and balance and submitting claims.

You can open a health savings account with this provider online in less than 20 minutes, and you'll receive a debit card that lets you pay directly for eligible medical expenses from your account if you prefer. The company also offers a wealth of educational materials, including videos and webinars, that can help you select the right combination of investments for your account and 24/7 live account support.

Best for No Fees : Lively


Lively

 Lively

Key Specs
  • Fee: None
  • Mobile App: Yes
  • Debit Card: Yes
Why We Chose It

Lively doesn't charge fees to open or maintain a health savings account, including no hidden fees. Lively is a solid option if you want an account where fees won't eat away at your savings.

Pros & Cons
Pros
  • No fees for their HSAs

  • Open and fund your account with ease and entirely online

  • Invest your HSA funds with TD Ameritrade

  • Lively offers a mobile app that lets you track your HSA funds on the go

  • Get a free debit card you can use to pay medical bills

Cons
  • Only one of Lively’s two investment solutions is free—the other has a 0.50% annual fee

  • It's a new company with only a few years of experience

Overview

Lively was founded in 2016, so this HSA provider hasn’t been around that long. However, we chose Lively as the best for no fees because their HSAs don’t come with any account opening fees, maintenance fees, fund transfer fees, debit card fees, or hidden fees of any kind. Lively also gives you a debit card connected to your account, which lets you pay for medical expenses over the phone or in an office, with the money being automatically debited from your HSA.

Lively is fully online, and they also offer a mobile app that can help you track your HSA funds using your favorite device. You can also use the app to monitor your healthcare payments and keep track of your health insurance deductible. Lively also offers paperless account rollovers and trustee-to-trustee transfers of funds. 

Lively offers two investment solutions for users to choose from. TD Ameritrade’s Self-Directed Brokerage Account is free to access, and Devenir’s Guided Portfolio incurs a 0.50% annual fee. However, neither option requires a minimum balance to invest your money, so you can start small if you prefer.

Best for Families : The HSA Authority


HSA Authority

 HSA Authority

Key Specs
  • Fee: $36 (annual)
  • Mobile App: No
  • Debit Card: Yes
Why We Chose It

The best option for families is The HSA Authority, based on their wealth of online account management options and that you can easily delegate financial tasks to other members through their online banking portal. Their online functionality makes it easy for two parents or partners to oversee HSA funds, make contributions, or pay medical bills for the entire family.

Pros & Cons
Pros
  • Superior online functions for families, such as shared account access, online bill pay, mobile deposit, text banking, and more

  • Receive a Visa debit card for medical bills

  • Easy to open and fund online

Cons
  • $36 annual fee for investment oversight

  • Expense ratios among investment options vary

Overview

We chose The HSA Authority as our best option for families for a few reasons, but it all starts with the fact that they offer many ways to co-manage an HSA online. Their shared portal lets the main account holder delegate and share tasks with other members of the plan, and you can also benefit from online bill pay, text banking, mobile deposits, e-statements, and other web-based services.

The HSA Authority was founded quite recently, in 2004, but it’s important to know this HSA provider is actually part of Old National Bank, which has its own history that goes back to 1834. You don’t need a minimum balance amount to open an account with The HSA Authority. In terms of their investment options, The HSA Authority lets you invest in mutual funds through their investment partner, Devenir. 

A $36 annual account management fee applies to your account, and you’ll earn only a nominal amount of interest on your money until you’re able to invest for the long term. Fortunately, HSAs with The HSA Authority are easy to open and fund online, and you can add money to your account at any time, thanks to their online banking and account transfer features. You’ll also get a Visa debit card you can use to pay medical bills directly from your HSA if you prefer.

Best for No Minimum Balance Requirement : HSA Bank


HSA Bank

 HSA Bank

Key Specs
  • Fee: Yes (varies)
  • Mobile App: Yes
  • Debit Card: Yes
Why We Chose It

We chose HSA Bank based on the fact that you can open an account online in less than 10 minutes with no required minimum to get started. This means you can start saving any amount and you can easily fund your account online.

Pros & Cons
Pros
  • No minimum balance to open an account

  • Option to invest your funds with TD Ameritrade or Devenir

  • No account management fees if you keep at least $3,000 in your HSA

Cons
  • $25 fee for closing your account

  • Investment fees vary

  • Pay $2.25 monthly account management fee if your balance is below $3,000

  • May incur investment fee unless your account balance is $5,000 or more

Overview

HSA Bank’s history goes back to 1913, when it began as the State Bank of Howards Grove in Wisconsin. This was long before HSAs existed, so they operated as a community bank, offering traditional banking products. However, the company has grown and changed its focus to HSAs, flexible spending accounts (FSAs), and other health reimbursement arrangements, and we chose them for our review as best for no minimum balance requirement.

Not only does HSA Bank offer flexible HSAs with no money required to get started, but they also offer a client assistance center that is open 24 hours a day. However, you should note that there is a $2.25 monthly account management fee if your balance drops below $3,000.

With HSA Bank, you can earn a fixed interest rate on your savings or invest your account into stocks, bonds, mutual funds, ETFs, and other investment options with Devenir or TD Ameritrade. There is no minimum balance to invest your HSA funds with this provider.

Best Investment Options : Fidelity


Fidelity

 Fidelity

Key Specs
  • Fee: None
  • Mobile App: Yes
  • Debit Card: Yes
Why We Chose It

Fidelity allows you to invest your HSA money into Fidelity stocks, bonds, mutual funds, ETFs, and fractional shares. Fidelity even offers a handful of fund options that are only available to clients with a Fidelity HSA, including Fidelity Health Savings Fund (FHLSX) and Fidelity Health Savings Index Fund (FHSNX). There's no minimum balance required to open an account, and the HSA doesn't charge monthly account fees.

Fund your Health Savings Account by transferring from a bank account or making a mobile check deposit. If you're looking to use your HSA for qualifying expenses, you can use the Fidelity HSA debit card for Fidelity BillPay.

Pros & Cons
Pros
  • Invest your HSA into high-quality, low-cost Fidelity mutual funds and index funds

  • No deposit minimums or account management fees

  • Receive a debit card you can use to pay for eligible healthcare expenses

Cons
  • Underlying fund expenses apply when you invest your HSA money, and these vary

  • Some Fidelity HSA investment options come with expense ratios as high as 1.33%

Overview

If you’re looking for an HSA provider who has been around for a while, you might be interested to know that Fidelity was founded in 1946. However, we chose Fidelity for our ranking not for their longevity, but because you can invest your HSA funds in many low-cost options aimed at long-term growth.

Fidelity even offers two funds specifically for their HSA members, including Fidelity Health Savings Fund (FHLSX) and Fidelity Health Savings Index Fund (FHSNX). FHSNX, in particular, has an expense ratio of just 0.25%, which makes it an affordable option for long-term investors who want to grow their HSA balances over time. Plus, Fidelity lets you choose from other investments laid out on their website, including dozens of funds from Fidelity, JP Morgan, BlackRock, and others. 

Fidelity doesn’t charge any fees for account opening or account maintenance, nor do you have to pay any fees to use your associated debit card account. They also make it easy to open and fund your account online.

Best for Employers : Further


Further

Further

Key Specs
  • Fee: Yes (varies)
  • Mobile App: Yes
  • Debit Card: Yes
Why We Chose It

Further is the best HSA provider for employers based on the selection of accounts they help manage. Business owners, including owners of small firms, can turn to Further for help overseeing employer HSAs, flexible spending accounts (FSAs), transportation reimbursement accounts (TRAs), dependent care assistance programs (DCAPs), and more.

Pros & Cons
Pros
  • Oversee several different employee reimbursement accounts and savings accounts in one place

  • Employees can grow their balance with interest rates as high as 0.70%

  • Investment options available with Charles Schwab once an account balance grows to $1,000 or more

Cons
  • Investment options have underlying fees that vary

  • Further charges an additional $18 per year for investment accounts

  • Further charges varying fees to employers who open accounts for their workers, and you have to call in for pricing

Overview

Further was founded in 1989 to streamline the healthcare payment process and has since been acquired by HealtheEquity. And while you can sign up for an individual or family HSA with Further, this provider stands out due to its wealth of healthcare account management options offered to employers. 

With the Further HSA, businesses can expect streamlined administration on a single platform, and employees can manage their HSAs using their mobile device while enjoying the perks that come with a simplified claims and reimbursement process. The Further HSA can be offered as a standalone product to employees, and you can also pair it with other options like FSAs, transportation reimbursement accounts, dependent care assistance programs, and more to attract and retain the best talent.

Further HSAs can earn a variable interest rate based on market conditions, but employees can invest their funds with Charles Schwab once they have at least $1,000 in their HSA. An annual fee of $18 is required for investment accounts with Charles Schwab, and included investments come with their own fees that vary. 

Finally, one downside to consider is that Further charges ongoing fees to employers who open an HSA or another reimbursement account, but these fees vary, and you have to call in to receive pricing.

Final Verdict

There are many options when it comes to choosing a health savings account. Some companies like Fidelity and Further don't charge any account fees, and most offer an HSA debit card so medical bills can be paid right out of your account. You can open an HSA in a matter of minutes online with most companies, and our top choice, HealthEquity, offers accounts with no minimum investment threshold.

HealthEquity was the best choice for several reasons, including its zero account management fees, robust mobile app, and offering of Vanguard's low-expense ratio funds to invest your dedicated HSA dollars.

Compare the Best Health Savings Account

 
HSA
Fee Mobile App  Debit Card
HealthEquity-Best Overall Yes Yes Yes
Lively - Best for No Fees No Yes Yes
The HSA Authority - Best for Families Yes Yes Yes
HSA Bank- Best for No Minimum Balance Requirement Yes Yes Yes
Fidelity-Best for Investment Options No Yes Yes
Further-Best for Employers Yes Yes Yes

Frequently Asked Questions

Am I Eligible for an HSA?

A health savings account (HSA) is a tax-advantaged account. You must have a high-deductible health insurance plan (HDHP) with a minimum deductible of $1,500 for individuals or $3,000 for families in 2023. Your plan's maximum out-of-pocket limit for the year cannot exceed $7,500 for individuals and $15,000 for families. You can deduct contributions up to these limits on your tax return, which grow tax-free in an investment account. With a health savings account, individuals can contribute up to $3,850, and families can contribute up to $7,750 in 2023 if they meet the plan's criteria.

How Does an HSA Differ From a Flexible Spending Account?


HSA funds are owned by the account holders and they roll over and never expire, unlike a flexible spending account. A flexible spending account is a savings account that lets employees contribute a portion of their earnings to pay for medical expenses and dental bills. Both accounts are tax-advantaged, meaning they are deducted from the user's taxable income. But by the end of the plan year, if an FSA account holder hasn't spent their funds, the account balance will disappear unless their employer offers a grace period of up to two-and-a-half months.


Are HSAs Worth It?

If you have a high-deductible health insurance plan and qualify for an HSA, opening and funding an account is definitely worth it. Even if you do not invest your HSA funds and only add money to your account as you need it, funneling contributions into an HSA before you pay medical bills can help you reduce your taxable income and save money on taxes during the year you contribute. At the age of 65, you can withdraw money from your HSA penalty-free without using the funds for healthcare expenses. This can make an HSA account a smart alternative for backup retirement savings you can tap into if you don’t wind up using your money for healthcare expenses.

Do All HSAs Have Monthly Fees?

Some HSA providers offer accounts without an annual or monthly account management fee. However, all providers who let you invest your HSA funds charge investment fees, and often more than one type. For example, you might pay an annual fee to your HSA provider for oversight of the underlying investments in your HSA, but you will also pay expense ratios that vary depending on the investments you choose. 

Is There a Penalty to Use HSA Funds for Non-Health Expenses?

If you need to withdraw the money from your HSA for non-medical expenses before age 65, you can do so. However, you can expect to fork over a lot of your proceeds right away. Specifically, you’ll have to pay a 20% penalty for withdrawing funds early and income taxes on the amounts you withdraw.

Methodology

To find the best HSAs on the market today, Investopedia compared more than 15 of the top providers to see how they stack up. Criteria we considered included ongoing fees and account management costs, investment options, ease of opening an account, debit card access, and minimum account requirements. The HSA providers who made our ranking tend to stand out due to their lack of fees, their unique or lucrative investment options, or the technology they use.

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Getty Images / GolfCphoto

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 our editorial policy.
  1. Congressional Research Service. "Health Savings Accounts (HSAs)."

  2. Wellesley. "Changes to Your HSA When You Reach 65."

  3. Michigan Civil Service. "Can I Withdraw the Funds From My HSA at Any Time?"