Top 15 Best HSA Providers | Health Savings Account Providers.
HSA Providers: Healthcare expenses should consider opening a tax-advantaged Health Savings Account (HSA Providers). This article will list all the comprehensive guide reviews on Best Health Savings Account Providers (Hsa Providers).
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In a nutshell, a health savings account (Hsa Providers) allows you to contribute money on a pre-tax basis, and your money gets the chance to grow tax-free until you use it for qualified healthcare expenses.
If you’re eligible for a plan, you will face contribution limits each calendar year, although these limits tend to be generous.
In 2022, individuals can contribute up to $3,650 in an HSA for self-only coverage, and families can contribute up to $7,300.
How do HSAs Work?
To be able to fund an HSA, you must have what the government considers a high-deductible health plan (HDHP), which the IRS defines as a plan with a minimum deductible of $1,400 for individuals or $2,800 for families for 2022.
Meanwhile, your plan must also meet a maximum out-of-pocket limit for the year, which is $7,050 for individuals and $14,100 for family plans in 2022.
If you believe saving for healthcare is important and you have an eligible health insurance plan, you should know that you can open a health saving account with any provider you want.
15 Best Health Savings Account (HSA) Providers of 2022
Each excels at least one thing, whether it’s keeping fees to a minimum or providing an unusually broad range of investment options. The list goes:
1. HSA Authority (Old National Bank)
3. Fidelity Investments
4. Lively HSA
5. Further HSA (Formerly Select Account)
6. Bank of America
7. Optum Bank
8. HSA Bank
9. Lake Michigan Credit Union
10. Inland Bank
11. HealthSavings Administrators
12. Saturna HSA
13. Starship HSA
14. Elements Financial
15. Bend HSA.
HSA Authority (Old National Bank)
The HSA Authority is one of the best Hsa providers for families.
Users like HSA Authority because of their extensive online account management options and the ease with which financial tasks can be delegated to other members via their online banking portal.
Their online functionality allows two parents or partners to manage HSA funds, make contributions, and pay medical bills on behalf of the entire family.
Why Users Choose the HSA Authority
‣ The users choose The HSA Authority as their best option for families for a variety of reasons, but it all starts with the fact that they provide numerous online options for co-managing an HSA.
‣ Their shared portal allows the primary account holder to delegate and share tasks with other plan members, and you can also take advantage of online bill pay, text banking, mobile deposits, e-statements, and other web-based services.
‣ The HSA Authority was founded in 2004, but it’s important to note that this HSA provider is actually part of Old National Bank, which has a history dating back to 1834.
‣ There is no minimum balance requirement to open an account with The HSA Authority, but you must have at least $1,000 in your HSA to invest in underlying funds.
HealthEquity is our overall winner because it allows you to invest in Vanguard funds with low expense ratios and offers a variety of features such as a mobile app and no account management fees.
The company also provides accounts with no minimum investment threshold, allowing you to invest every dollar you put into your HSA right away.
History of HealthEquity
HealthEquity was founded in 2002 and expanded its holdings in December 2021 by acquiring HealthSavings Administrators, a provider of health savings accounts (HSAs).
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.
However, all new accounts are opened and serviced by HealthEquity as of January 28, 2022.
Why Users Choose HealthEquity
‣ Users select HealthEquity as their best overall option among other Hsa providers because it will not only continue to use HealthSavings’ model of offering low-cost Vanguard and Dimensional Funds options with its HSAs.
‣ You can also use a simple mobile app for on-the-go account management, such as monitoring your spending and balance and submitting claims.
‣ You can open health savings account with this provider online in under 20 minutes, and you’ll receive a debit card that allows you to pay for eligible medical expenses directly from your account if you prefer.
‣ In addition, the company provides a wealth of educational materials, such as videos and webinars, to assist you in selecting the right combination of investments for your account.
You can invest your HSA funds in Fidelity mutual funds and index funds.
Fidelity even has a few funds that are only available to clients who have a Fidelity HSA, such as the Fidelity Health Savings Fund (FHLSX) and the Fidelity Health Savings Index Fund (FHSNX).
If you’re looking for a long-standing HSA provider, you might be interested to know that Fidelity was founded in 1946.
Why Users Choose Fidelity Investments
‣ However, we chose Fidelity for our ranking not because of their longevity, but because you can invest your HSA funds in a variety of low-cost long-term growth options.
‣ Fidelity even has two funds designed specifically for HSA members, the Fidelity Health Savings Fund (FHLSX) and the Fidelity Health Savings Index Fund (FHSNX).
‣ FHSNX, in particular, has a 0.25 percent expense ratio, making it an affordable option for long-term investors looking to grow their HSA balances over time.
‣ Furthermore, Fidelity allows you to choose from a variety of other investments available on their website, including dozens of funds from Fidelity, JP Morgan, BlackRock, and others.
‣ Fidelity does not charge any account opening or maintenance fees, nor do you have to pay any fees to use your associated debit card account.
There are no fees to open or maintain health savings account with Lively, and there are no hidden fees.
If you’re looking for a savings account with no fees, Lively is a good option to consider.
Lively was founded in 2016, so this HSA provider isn’t that old.
Why Users Choose Lively HSA
‣ However, we chose Lively as the best for no fees because their HSAs have no account opening fees, maintenance fees, fund transfer fees, debit card fees, or any other hidden fees.
‣ Lively also provides you with a debit card linked to your account, allowing you to pay for medical expenses over the phone or in person, with the money automatically deducted from your HSA.
‣ Lively is entirely online, and they also provide a mobile app that allows you to track your HSA funds using your preferred device.
‣ You can also use the app to keep track of your healthcare payments and your health insurance deductible.
‣ Lively also provides paperless account rollovers and trustee-to-trustee fund transfers.
‣ Users can choose between two investment options on Lively. TD Ameritrade’s Self-Directed Brokerage Account is free to use, while Devenir’s Guided Portfolio has an annual fee of 0.50 percent.
Further HSA (Formerly Select Account)
Furthermore, based on the number of accounts they help manage, is the best HSA provider for employers.
Further can assist business owners, including small business owners, in managing employer health savings accounts, flexible spending accounts (FSAs), transportation reimbursement accounts (TRAs), dependent care assistance programs (DCAPs), and other benefits.
Further was established in 1989 with the intention of simplifying the healthcare payment process.
Why Users Choose Further HSA
‣ While you can open an individual or family HSA with Further, this provider stands out because of the variety of healthcare account management options available to employers.
‣ Businesses can expect streamlined administration on a single platform with the Further HSA, and employees can manage their HSAs using their mobile devices while enjoying the benefits of simplified claims and reimbursement process.
‣ Further HSA can be offered as a stand-alone product to employees, or it can be combined with other benefits such as FSAs, transportation reimbursement accounts, dependent care assistance programs, and more to attract and retain top talent.
‣ Further HSAs can earn a variable interest rate based on market conditions, but employees can invest with Charles Schwab once they have at least $1,000 in their HSA.
Bank of America
Many people prefer to manage all of their finances through a single bank.
With 4,300 branches and approximately 17,000 ATMs, Bank of America, the second-largest bank in the United States, combines broad physical access with a full suite of digital and online tools.
It’s a good option for people who prefer to do their banking in person rather than online.
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Why Users Choose Bank of America
‣ You can access the HSA and submit claims through BofA’s member website or the MyHealth BofA mobile app.
‣ The HSA includes a Visa debit card with no transaction fees, a savings calculator, and 24/7 phone or online chat support.
‣ The bank also offers advice and education on how to align financial strategies with health and wellness objectives.
‣ Depending on their balances, savers can earn up to 0.07 percent APY, and investors can choose from dozens of Merrill Lynch (a subsidiary of BofA) mutual funds.
‣ BofA does not charge transaction fees to buy or sell investments, but mutual funds have internal expenses.
‣ BofA also serves as an HSA custodian for both small and large businesses.
Optum Bank is a subsidiary of Optum, a technology services division of UnitedHealth Group.
If you work for a large corporation, this is most likely your default HSA for your company’s health plan.
Their monthly charge is $2.75. (usually covered by the employer).
Why Users Choose Optum Bank
‣ There is no minimum balance required to begin. This plan comes with a debit card, checking, online banking, and a mobile app.
‣ Optum Bank is an FDIC-insured bank with over three million accounts and $9 billion in assets under management.
‣ Optum Bank offers a wide range of investment opportunities. You must first meet the $2,000 investment requirement.
‣ Once you’ve done that, you’ll be able to rebalance your portfolio and easily transfer funds between investments and your main account.
We chose HSA Bank because you can open an account online in less than 10 minutes and there is no minimum deposit required to get started.
This means you can begin saving with any amount and easily fund your account online.
The origins of HSA Bank can be traced back to 1913 when it was known as the State Bank of Howards Grove in Wisconsin. Because this was before HSAs, they operated as a community bank, offering traditional banking products.
However, the company has grown and shifted its focus to health savings accounts (HSAs), flexible spending accounts (FSAs), and other types of health reimbursement arrangements, and we chose them for our review because they have no minimum balance requirement.
Why Users Choose HSA Bank
‣ HSA Bank not only offers flexible HSAs with no money required to start, but they also have a client assistance center that is open 24 hours a day.
‣ However, if your balance falls below $3,000, you will be charged a $1.75 monthly account management fee.
‣ You can earn a fixed interest rate on your savings with HSA Bank or invest in stocks, bonds, mutual funds, ETFs, and other investment options through Devenir or TD Ameritrade.
‣ This provider has no minimum balance requirement for investing your HSA funds. Investment accounts with a daily balance of less than $5,000, on the other hand, maybe charged a monthly fee of $3.
Lake Michigan Credit Union
My pick for the best HSA account with a savings account option is the Lake Michigan Credit Union HSA.
While interest rates are currently historically low everywhere, Lake Michigan Credit Union, as a credit union with a strong balance sheet that passes savings on to customers, offers some of the most competitive interest rates of any credit union or bank.
Their investment account options do not make them the best choice for investors, but they are the best choice if you intend to keep your funds in savings only.
Inland Bank is a smaller HSA provider with only one HSA account available – HSA Advantage.
This account has no fees and allows you to invest any amount over $250. MyHSAinvestments.com is a website where you can invest.
The minimum deposit required to open an account is $100.
Health Savings Administrators is an HSA provider that offers a solid selection of investments, including Vanguard funds, but they charge higher fees than the other providers on this list.
Administrative fees are currently $45 per year, plus 6.25 basis points per quarter (this equates to $0.625 per $1,000 each quarter).
In comparison to other providers, this is relatively expensive.
Saturna is a name that comes up a lot when discussing HSA providers because they have a unique fee structure that may work better for some people than the options in the list above.
If you trade at least once a year in your account, you may be eligible for a no-fee HSA (which most people will do as they invest new funds).
They provide commission-free investing through their affiliated funds, but otherwise charge $14.95 per trade.
This will most likely be more expensive than the other options on this list for most people.
Starship HSA is a newcomer to the HSA market, with the goal of keeping HSAs simple and low-cost.
While they advertise “no fees,” this only applies if you use the HSA for medical expenses and keep your money in cash or savings.
If you do decide to invest, you will be charged a monthly fee of $1, or 0.35 percent of your AUM if your balance exceeds $25,000.
The investment-style account costs $1 per month for balances under $5,000. For higher balances, they charge 0.35% annual percentage of your AUM.
Elements Financial is almost at the top of the list, but they are still relatively unknown.
They offer a free HSA option if you maintain a minimum account balance of $2,500; otherwise, it costs $4 per month.
TD Ameritrade, which is similar to Lively, also allows you to invest in your HSA.
Bend Financial is a Health Savings Account (HSA) technology company that provides tools for consumers and employers to better understand the differences between health savings options.
BendHSA was looking for a partner who could ensure that their product’s design was as distinct and innovative as their underlying vision.
The Benefits of HSAs
Why compile and keep track of a list of the best HSA accounts?
I’ve previously stated that the HSA is my choice for the best retirement account (with employer matching funds excluded), as well as the best account for health care costs.
Why are HSAs the best? Here are just a few of the reasons:
‣ HSAs offer a unique combination of tax-free pre-tax contributions and tax-free withdrawals for qualified medical expenses (QMEs), employer contributions, and growth through investments.
In other words, for qualified medical expenses, you’re not taxed when the funds are contributed or withdrawn from an HSA!
‣ HSA maximum contributions are significant – $3,650 per individual and $7,300 per family in 2022. That is a very significant amount of tax savings!
‣ HSA account contributions fully roll over from year to year (unlike with FSAs). In other words, HSA funds are not “use it or lose it”.
‣ You can do a one-time IRA to HSA rollover to boost your funds.
‣ If you have an employer-sponsored HDHP with HSA, you may be eligible for HSA bonus incentives.
‣ You are the owner of your HSA account and your employer can’t take the funds away from you.
‣ HSAs are “portable”. This means that you can take an HSA with you from one employer to another, or even to self-employment.
‣ You can withdraw funds from HSA accounts in retirement similar to an IRA, without penalty, for any reason, starting at age 65.
‣ HSA providers don’t have required minimum distributions at retirement age as IRAs do.
‣ HSAs can now be used to pay for OTC medications, feminine hygiene and menstrual care products, and telehealth – in addition to all of the previous qualified medical expenses like doctor visits, prescription drugs, and more.
‣ Remember that you must have an HDHP in order to gain access to and continue contributing to an HSA. You can withdraw funds from an HSA at any time for a qualified medical expense.
FAQs on HSA Providers
Here are some of the FAQs on Hsa Providers. Kindly study the answers carefully:
1. Who are the Largest HSA Providers?
Optum, HealthEquity, Fidelity, and HSA Bank continue to dominate the HSA market with more than $51 billion in combined assets.
That accounts for more than 60% of total HSA assets, which amounted to $82.2 billion at the end of 2020 according to Devenir.
2. Where should I open my HSA?
HSAs can be set up with banks or credit unions.
You can ask your insurance company or your employer (if you get insurance through your job) for recommended places to set up your HSA.
You can also start one with the bank where you have your regular checking and savings accounts.
3. Does Vanguard offer HSA?
Vanguard makes contributions to your HSA (at HealthEquity) to help increase your savings potential. The HSA offers triple tax advantages not available through any other type of medical account.
4. How do I Avoid HSA Fees?
These fees can really add up, but they can also often be avoided: Sign up for online statements.
Use your debit card instead of ordering checks, or transfer money online to your checking account and use it to pay your provider. Keep track of your HSA balance and don’t overdraw your account.
5. Can I choose my own HSA Bank?
Just like people who buy their own health insurance on the individual market, you can open your own HSA account and choose from the hundreds of plans offered by banks, credit unions, and other financial institutions.
6. Can I open HSA Account on my own?
Can I open my own health savings account if my employer doesn’t offer one? Yes, you can open a health savings account (HSA) even if your employer doesn’t offer one.
But you can make current-year contributions only if you are covered by an HSA-qualified health plan, also known as a high-deductible health plan (HDHP).
7. What Bank offers HSA Accounts?
The bank that offers an HSA account is Lively HSA. Others are Fidelity Investments, HealthEquity, Further HSA (Formerly Select Account), etc.
8. Can I Transfer my HSA to Fidelity?
Yes, you can.
9. Which is Better Fidelity or Vanguard?
The report’s research shows Vanguard has a better after-tax return and is more tax-efficient than Fidelity.
10. What’s one Potential Downside of an HSA?
What are some potential disadvantages to health savings accounts? Illness can be unpredictable, making it hard to accurately budget for health care expenses.
Information about the cost and quality of medical care can be difficult to find. Some people find it challenging to set aside money to put into their HSAs.
If you have any questions concerning HSA Providers, please feel free to use the comment box below and ask us your question. We will be very pleased to answer you.
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