With its tax benefits and the stealthy, steady investment opportunities it offers, the health savings account, or HSA, has grown in assets and popularity in the 20 years it's been around.
That growth continues, says HSA research leader Devenir. By the middle of this year, almost 36 million accounts held $116 billion in assets. That's a year-over-year jump of 17% for assets and 6% for health savings accounts.
And during the first half of 2023, HSA accounts with invested assets grew 20%, totaling $40 billion at the end of June (up 30% from the year prior), according to the most recent Midyear Devenir HSA Research Report.
Devenir currently projects that the HSA market will exceed 40 million accounts by the end of 2025, holding over $150 billion in assets.
Financial advisors call health savings accounts a sort of secret retirement account. HSAs are often thought of as just a way to pay for immediate health care costs. But they have become a powerful financial tool. By investing HSA assets, account holders can turn them into tax and nest-egg engines.
Read our full report on the best HSAs for 2024, how to get the most from HSA investing, and how HSAs can help young investors create a healthier, wealthier retirement
Finding Companies That Offer The Best HSAs
To help consumers find accounts that can help them make the most of their contributions, IBD presents its seventh special HSA report. We've combined research and insights from Devenir, Morningstar and hundreds of HSA providers to create this report.
As you look ahead to your personal finance plan for 2024, use our list to evaluate the fees, account features, investing options and savings rates of the best health savings account providers.
To identify the best companies, we first sought out those that offer investment options. We also analyzed fees, account features, advisor input and fund ratings.
Our final list highlights HSAs that offer a winning combination of low fees, high-quality investment options and low minimum investment requirements. We also highlight the companies that rank highly in the categories of widest investment options, low Fees, best rates, and zero investment threshold.
We did not rank the listed companies overall but they are listed in order of the number of category wins. And, please note: Our list only includes HSA account providers that offer HSAs to individuals, not ones that work exclusively with employers.
This year, Fidelity again tops the list, with a win in each category. The health savings account platform Lively, begun in 2016, also ranks highly, with wins in three categories. Then we list the HSA account providers that won in two categories, then one-category winners and then the rest.
New to the IBD special report this year is our honor roll, below the Best HSAs list. We've compiled a list of an additional 25 HSA providers that offer a solid combination of investment options and no or low fees, to help consumers find the HSA company that best fits their needs.
IBD's 2024 List Of Best HSAs
| Fidelity Investments | |
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Category Awards: Widest Investment Options, Low Fees, Best Savings Rates, Zero Investment Threshold |
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Fees* $0 monthly maintenance fee. There are zero account fees and zero account minimums for Fidelity HSAs offered through Fidelity.com to individuals and employers. There may be commissions, interest charges, and other expenses associated with transacting or holding specific investments (e.g., mutual funds), or selecting certain account features or types (e.g., managed accounts). |
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Investment options Fidelity's HSAs offer a self-directed brokerage platform with 10,000+ mutual funds, stocks (including fractional shares), bonds, ETFs and CDs. For novice investors, Fidelity HSA Funds To Consider, a list of 22 professionally chosen funds for HSA investing with waived investment minimums and no transaction fees; also includes Fidelity Health Savings Fund specifically designed for customers with HSAs. Fidelity Go HSA is a managed account where Fidelity chooses and manages your investments (which include no-expense, zero minimum Fidelity Flex Funds) based on your goals and risk tolerance. |
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Minimum balance $0 |
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Features Debit card, checks, online banking, investment options |
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FDIC or NCUA insured** Yes |
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Investment threshold $0 |
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Savings rate FDIC-insured deposit sweep for balances up to $5,000, up to 2.72% |
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| Lively | |
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Category Awards: Low Fees, Best Savings Rates, Zero Investment Threshold |
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Fees* Monthly maintenance $0; account opening $0; account closing $0 |
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Investment options Lively offers a mutual fund platform, self-directed brokerage, and CDs. Options include individual stocks, bonds, CDs, commission-free ETFs, and mutual funds. Investment capabilities for HSAs are offered through TD Ameritrade integration. |
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Minimum balance $0 |
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Features Debit card, online banking, investment options |
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FDIC or NCUA insured** Yes |
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Investment threshold Mutual fund investment threshold: $0; investment fee: 0.50% annually for HSA Guided Portfolio |
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Savings rate 0.010% to 0.10% depending on balance tiers |
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| New Direction Trust Company | |
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Category Awards: Widest Investment Options, Zero Investment Threshold |
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Fees* Monthly maintenance fee $16.25 (Annual fee of $195+); account opening fee $50; account closing fee $75 to $250 |
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Investment options New Direction Trust Company is a self-directed HSA platform. An HSA with NDTCO can invest in a wide array of assets including private equity, real estate, private loans, precious metals and more. NDTCO is commonly used in a two-HSA system (an HSA at a bank for convenience and an HSA at NDTCO) to maximize the tax benefits of this account type. |
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Minimum balance $0 |
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Features Online banking, investment options |
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FDIC or NCUA insured** Yes |
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Investment threshold $0 |
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Savings rate Unknown |
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| Fowler State Bank | |
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Category Awards: Best Savings Rates |
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Fees* Unknown |
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Investment options Fowler State Bank offers a mutual fund platform and other investment options for HSAs. |
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Minimum balance $25 |
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Features Debit card, investment options |
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FDIC or NCUA insured** Yes |
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Investment threshold Unknown |
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Savings rate 0.5% for balances from $1,000 to $9,999 and 1.0% for balances of $10,000 and up |
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| HSA Bank, a division of Webster Financial (WBS) | |
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Category Awards: Low fees |
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Fees* Monthly maintenance $0; account opening $0; account closing $25 |
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Investment options HSA Bank offers a self-directed mutual fund investment program with no-load mutual funds, covering a range of asset classes, and an HSA Guided Portfolio tool to select investment elections and realign the portfolio, along with other planning features. |
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Minimum balance $0 |
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Features Debit card, checks, online banking, investment options |
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FDIC or NCUA insured** Yes |
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Investment threshold Mutual fund investment threshold: $1,000; investment fee: 0.30% per year |
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Savings rate 0.05% to 0.50% depending on balance tier |
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| First American Bank | |
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Category Awards: Low Fees |
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Fees* Monthly maintenance $0; account opening $0; account closing $25 |
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Investment options First American Bank offers a selection of low-cost, competitive mutual funds, a self-directed brokerage, and CDs for its HSAs. Once a customer reaches the target cash balance of $1,000 in the checking account portion of their HSA, they can then perform an account sweep and move any additional funds into an array of investment options made available. |
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Minimum balance $0 |
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Features Debit card, checks, online banking, investment options |
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FDIC or NCUA insured** Yes |
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Investment threshold Mutual fund investment threshold: $1,000; investment fee: 0.075% per quarter or equal to an annual fee of 0.30% on balances invested in mutual funds in an investment account |
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Savings rate Unknown |
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| Equity Bank | |
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Fees* $3; account opening $0; account closing $25 |
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Investment options The Equity Bank HSA provides a diverse suite of mutual funds. Cash, invested balances, and transaction activity are integrated into the platform for a consolidated view of the total account value. Features include online access to trading, auto-transfers, and auto-rebalance capabilities. Investments in securities through the HSA investment account are not FDIC insured. |
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Minimum balance $0 |
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Features Debit card, online banking, investment options |
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FDIC or NCUA insured** Yes |
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Investment threshold Mutual fund investment threshold: $1,000; MF investment fee: 0.0005% of investment balance, charged quarterly. |
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Savings rate 0.05% to 0.25% depending on balance tier |
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| HSA Central | |
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Fees* Monthly maintenance $2.50; account opening $0; account closing $25 |
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Investment options HSA Central offers participants a mutual fund platform and self-directed option, managed online within the HSA Central Consumer portal and mobile app. Participants with HSAs also can work with a Central Investments Advisor to help customize an investment plan, aligning with their health care and retirement goals. |
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Minimum balance $0 |
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Features Debit card, checks, online banking, investment options |
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FDIC or NCUA insured** Yes |
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Investment threshold Mutual fund investment threshold $3,000; investment fee $1/mo. |
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Savings rate Unknown |
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| Saturna Capital | |
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Fees* Monthly maintenance $0; account opening $0; account closing $0 |
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Investment options Saturna offers a self-directed brokerage platform that includes non-Saturna mutual funds, stocks, covered call options, and money funds. Permitted investments are the same as those in Saturna IRAs. |
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Minimum balance $100 |
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Features Investment options |
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FDIC or NCUA insured** No |
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Investment threshold Mutual fund investment threshold: n.a.; no investment fee |
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Savings rate n.a. |
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| Blackhawk Bank | |
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Fees* Monthly maintenance $2.50; account opening $0; account closing $5 |
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Investment options Blackhawk is now partnering with First Mid to provide HSAs and related investment options. Check the First Mid website for current information on investment options, fees and more. |
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Minimum balance $0 |
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Features Debit card, online banking, investment options |
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FDIC or NCUA insured** Yes |
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Investment threshold $5,000. Investment fee: 0.50% annual Fee charged by myHSAinvestments |
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Savings rate Unknown |
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| UMB Bank | |
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Fees* Monthly maintenance $2.95; account opening $0; account closing $15 |
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Investment options The UMB Health Savings Account gives customers the opportunity to select and manage investments through UMB HSA Saver, an online investment account. |
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Minimum balance Unknown |
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Features Debit card, checks, online banking, investment options |
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FDIC or NCUA insured** Yes |
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Investment threshold $1,000; investment fee: $3/mo. |
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Savings rate Unknown |
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| Payflex | |
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Fees* Monthly maintenance $5; account opening $0; account closing $25 |
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Investment options Payflex offers a mutual fund platform and self-directed brokerage, with a no-transaction-fee platform. No minimum investment amount for HSAs. Automatic dividend reinvest option at account level. |
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Minimum balance $0 |
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Features Debit card, checks, online banking, investment options |
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FDIC or NCUA insured** Yes |
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Investment threshold $1,000; Investment fee: 0.03% of prior month's average invested balance, applied only on first $33,333.33 of invested assets. |
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Savings rate Standard: 0.01% to 0.05%; Enhanced: 0.05% to 0.50%, depending on tier balance. |
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Sources: Devenir, company websites. Fees, interest rates and offering details may change. Please check the provider's website for the latest information. All data was finalized on Nov. 1, 2023. Compare this year's Best HSA providers to our list for last year.
Best HSA Accounts Licensing: The 2023 Best HSAs logo and accolades are available for licensing through Investor's Business Daily's partner, The YGS Group, at IBDlicensing@theYGSgroup.com or 800 290-5460.
* Fees: Employers' HSAs and plans may have different fee schedules. The criteria for our low fees rating is no monthly maintenance fee, and no other fees, other than an account closing fee (which means no fees while you have an account open). Not included in our rating: all investment-related fees.
** FDIC Insured: Applies only to savings/checking accounts. Investments are not FDIC insured. NCUA is the National Credit Union Administration, which insures savings/checking accounts held at credit unions.
New: IBD's 2024 HSA Honor Roll
The following 25 HSA providers offer a combination of low or no monthly maintenance fees with investment options and product features we think retirement savers want to know about.
We've named them to the IBD HSA Honor Roll for 2024.
| HSA provider | Monthly maintenance fee | Investment options |
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| ALEC | $0.00 | Mutual fund, CD |
| Avidia Bank | $0.00 | Mutual fund, CD |
| CME Federal Credit Union | $0.00 | Mutual fund |
| Consumers Credit Union | $0.00 | Mutual fund, CD |
| Financial Center First Credit Union | $0.00 | Mutual fund, CD |
| Gulf Coast Educators Federal Credit Union | $0.00 | Mutual fund |
| HealthEquity | $0.00 | Mutual fund |
| Independent Bank | $0.00 | Mutual fund |
| Lake Michigan Credit Union | $0.00 | Mutual fund |
| Macatawa Bank | $0.00 | Mutual fund |
| Pathways Financial Credit Union | $0.00 | Mutual fund, CD |
| Pinnacle Financial Partners | $0.00 | Mutual fund |
| Associated Bank | $0.00 | Mutual fund |
| KeyBank | $0.00 | Mutual fund |
| Pinnacle Bank | $0.00 | Mutual fund |
| Flex HSA | $1.75 | Mutual fund |
| MassMutual | $1.95 | Mutual fund |
| Bank of America (BAC) | $2.50 | Mutual fund |
| PNC (PNC) | $2.50 | Mutual fund |
| Premier Bank | $2.50 | Mutual fund |
| Stock Yards Bank & Trust | $2.50 | Mutual fund, CD |
| Everence Federal Credit Union | $3.00 | Mutual fund, CD |
| SelfcareHSA | $3.00 | Mutual fund |
| Synovus | $3.00 | Mutual fund |
| BenefitWallet | $3.50 | Mutual fund, CD |
Sources: Devenir, company websites. Fees, interest rates and offering details may change. Please check the provider's website for the latest information.
