11 Best HSA Providers of 2024 [Ultimate Guide]

If you want to increase your healthcare savings, it would be good to consider some of the best HSA providers. 

With its excellent tax benefits and dynamic withdrawal rates, an HSA can be a life-changing tool. You can leverage it as a mid-term financial goal or long-term investment strategy, healthcare checking account, or in different degrees in between. 

However, different account characteristics and features can make it even more challenging to sort through all the available options. Therefore, we are here to curate the list of the best health savings account providers for those who are looking to shop around.

Health Savings Accounts (HSAs) offer a powerful combination of tax benefits and flexible withdrawal options, making them a valuable tool to reach your financial goals.

What is a Health Savings Account (HSA)?

An HSA is a tax-benefit account that you can use to pay your medical bills, like dental care, bandages, contacts and eyeglasses, prescriptions, X-rays, copays, etc. An HSA is subject to annual contribution limits and is available with a high-deductible healthcare plan.

It is a tax-benefit account as your contributions minimize your taxable income and the money in the account isn’t taxed, even if it earns huge returns or interest. You will not have to owe taxes while withdrawing until you use your HSA funds to pay off your medical expenses.

Let’s know who are the Best HSA Providers of 2024.

Best HSA Providers in 2024

1. Fidelity 

Overview

Fidelity is among the best HSA providers that receive the best billing for an investment or spending account.

The fidelity spending account has marked its place as the best HSA provider by delivering huge returns on cash balances. 2.69% of fidelity’s interest rate, irrespective of account balance, signifies far above rates by other providers like First American Bank, with an interest rate that’s still half of fidelity rates. Fidelity has also shunned additional and maintenance fees since providing its first HSA to individuals in 2018. 

Why Choose It?

Fidelity is very famous in the field of the best HSA account providers. It offers elite services and rules the four major criteria.

• Best saving account 
• Best for investment options 
• No requirement for a premium balance 
• Low fees

Pros 

• No requirement for a minimum balance for investment 
• Availability of various investment plans 
• No ongoing account fees
• High APY 

Cons 

• It will require three to ten days to withdraw the invested funds
• The Fidelity Go (managed account) fee is charged for huge account balances
• Fidelity Health app relies on the linked and tracked data

2. First American Bank

Overview 

First American Bank also one of the best HSA providers, provides a cost-effective and simple solution for HSA account holders. They also offer no-cost HSAs, ensuring users can manage their HSA without paying maintenance fees.

It enables individuals to smoothly direct their transactions and is also notable for its high interest rates. It provides account holders with the opportunity to earn potential rates on their account balances. Moreover, it offers a practical solution for individuals seeking an efficient and feeless HSA experience.

Why Choose it?

The reason why you should choose the First American Bank is because of its features like:

• Competitive interest rates
• No-cost HSAs, allowing users to quickly manage their HSAs without incurring maintenance fees
• Accessible online tools, self-service, and resource options for users  

Pros

• No maintenance fees
• Reasonable interest rates
• Accessible online tools and resources 

Cons

• Complex investment menu 
• Complex strategies 

3. HealthEquity

Overview

HealthEquity was founded in 2002 with the aim of offering Americans more control over their healthcare, making it one of the best health savings account providers. Unlike some other famous HSA providers, it completely focuses on offering healthcare benefits to businesses and individuals.

HealthEquity has served more than 14 million people to date, and more than 120,000 organizations have used HealthEquity to provide the best healthcare benefits to their employees to achieve a better future.

Why Choose it?

HealthEquity is one of the best HSA providers and is good for those who want a robotic service to aid in investing their HSA balance. It offers three investment options: one is a self-driven account, and the other two provide half-automatic or full account management.

The AutoPilot option is a full robotic service advisor. After you answer some basic questions, it’ll automatically create and rebalance your portfolio, a hands-off strategy to invest in your HSA.

Investors looking for a hybrid strategy can choose the GPS option, which is similar to AutoPilot. GPS recommends investments based on your answers to some basic questions.

Pros 

• Access to low-cost Vanguard funds 
• No maintenance fees
• Robo-advisor service 

Cons

• Only a few investment options to choose from 31 fund
• $25 is the account rollover fee
• $500 is the minimum investment balance 

4. Bank of America 

Overview 

Bank of America also one of the best HSA providers. It was founded in 1904 by an Italian immigrant son and marketed to unbanked immigrants to keep their money secure. During its inception, it was known as Bank of Italy and later changed to Bank of America in 1930.

Bank of America has thousands of branches throughout the US and offers everything you would expect from a national bank, such as credit cards, deposit accounts, investing services, loans, etc.

Why Choose it?

Following are the reasons why one should choose Bank of America as the best HSA providers:

• It is a good HSA option for those with a deposit account via Bank of America or who want to work with a big Bank for their healthcare savings account. 
• It provides 24*7 online customer service via a mobile app and can connect different types of accounts in Bank of America.

Pros 

• Multiple in-person and phone support 
• Availability of digital features and tools 
• Links to other accounts present in Bank of America 

Cons

• Charges monthly management fees of $2.50 and transfer fee of $25
• $1000 is the minimum investment balance 
• Only a few investments to choose from, with 40 available funds 

5. Associated Bank

Overview 

Associated Bank is headquartered in Green Bay, Wisconsin. It is a leading Midwest banking firm that offers various financial services and products from nearly 200 banking areas, serving 100+ communities throughout Minnesota, Wisconsin, and Illinois. The bank also handles loan product offices in New York, Michigan, Texas, Ohio, Missouri, and Indiana. Associated Bank is an equal housing lender, a member of the FDIC, and an equal opportunity lender.

Why Choose it?

Associated Bank checking accounts have various benefits, so you should opt for them. Some of the reasons are:

• Order checks online 
• Direct deposit 
• Overdraft protection transfer service 
• ATM solutions 

Pros 

• Wide ATM network 
• Special Term CD with high APY
• 24*7 customer service 
• Well-rounded investment 

Cons

• High account fees
• Limited branches 
• No free checking option 

6. Lively

Overview 

Lively was founded in 2016 and is headquartered in Howard Street. Its mission is that you should not sacrifice your health because of your financial health, and that’s why it is categorized as one of the best health savings account providers. Lively not only saves on today’s healthcare costs but also plans for tomorrow’s costs.

Lively created software with an intuitive user experience that aids in getting the most out of the HSA. 

Why Choose it?

The reasons why you should choose Lively amongst all the best HSA providers are:

• Lively HSA offers a free debit card for paying healthcare expenses.
• Offers mobile and online banking facilities to track and manage your account from anywhere.
• Cash balances earn huge interest and are FDIC-insured.
• Streamlined HSA administration to employers.

Pros

• No maintenance fees 
• No investment threshold 
• No minimum opening deposit 
• The website is easy to navigate and clear 

Cons

• Low interest rates 
• Charges high fee from guided portfolio option 

7. HSA Bank

Overview 

HSA Bank was established in 1997 and opened its first HSA account in 2004. It is derived from Webster Bank, which is dedicated to health accounts. The HSA charges minimal fees: no monthly account fees despite e-statements, which are $1.50 monthly.

There is no minimum balance requirement to open an HSA. However, balances of less than $5000 earn higher interest, and the highest APY of 0.5% is provided only on balances of $50,000 or above.

Why Choose it?

There are many reasons to choose HSA Bank, and some of them are:

• Seamless integration of health accounts into digital wallets.
• It offers a free debit card that can be added to a digital wallet and later on used to pay medical expenses through a mobile phone. 
• 24*7 customer support line and mobile app
• Two self-directed investment options include a Schwab Health Savings Brokerage Account and a guided portfolio program.

Pros

• No monthly account fees for e-statements 
• For digital wallet integration – debit card is equipped 
• No minimum opening deposit 

Cons

• You need at least $50,000 to earn the highest APY
• $1.50 monthly fee for paper statements
• A $1000 spending account balance is a must before leveraging the investing account.

8. Optum

Overview 

Optum was founded in April 2011 and is headquartered in Eden Prairie, Minnesota, with 310,000 employees worldwide. It is a division of UnitedHealth Group and brings every aspect of healthcare to provide a full view of an individual’s health. Optum offers personalized guides to help with guidance and decisions regarding healthcare experiences. Moreover, it also offers support by offering affordable choices to fulfill needs and drive better healthcare options that help individuals live healthy lives.

Why Choose it?

The reasons why you should consider Optum amongst the best HSA providers are:

• Easy coordination between HSAs and health coverage
• Offers user-friendly interface 
• Comprehensive educational resources that help users in making investment and healthcare decisions 
• Diverse investment options, such as MF
• Integrated health plans 

Pros 

• No maintenance fee for the spending account 
• No threshold on investment account 

Cons

• Low interest rate of 0.01%
• Excessive fees on the investment account 

9. Saturna Capital 

Overview

Saturna Capital was founded in 1989 and has helped institutions and individuals earn income, build wealth, achieve financial goals, and preserve capital. Saturna’s strong belief in value investing has influenced all its investment decisions. 

Saturna doesn’t follow trends; it examines opportunities through detailed research that explores industry themes, geopolitical trends, corporate leadership, competitive environments, and technology trends. Saturna is a value-based, long-term, and socially responsible investor. Its quirky selling proposition is its main focus on social and ethically responsible investing.

Why Choose it?

Individuals must consider Saturna Capital as the best HSA providers for the following reasons:

• Low-cost investing 
• Customizable portfolios 
• Ethical and socially responsible investing 
• Forward-thinking approach 

Pros

• Below-average investment threshold 
• Wide variety and higher quality of investment options 

Cons

• Charges maintenance fees
• Relatively expensive 

10. UMB

Overview 

UMB Bank, formerly known as the HSA Authority, provides a robust HSA with multiple benefits. It also offers diverse avenues for strategic fund growth to account holders, including brokerage and mutual fund choices.

The platform is famous for ensuring users can access assistance defined to their needs and personalized Customer service. Along with educational tools, account holders are encouraged to make informed decisions regarding investment and healthcare services. In a recent rebranding, UMB Bank reinforced its commitment to innovation, providing individuals with a futuristic and reliable HSA experience.

Why Choose it?

Following are the reasons why one should choose UMB Bank amongst the best HSA providers:

• Robust HSA solution 
• Diverse avenues for strategic growth of the fund 
• Wide variety of investment options 
• Comprehensive onboarding and education 
• Personalized customer service 

Pros 

• Charges modest fees 
• Custodial services 

Cons

• No availability of an Investment Portfolio 
• Subpar interest rate for balances of smaller plan  

11. Forma

Overview 

Forma is regarded as one of the most popular and best HSA providers. It provides a definite solution for administering several pre-tax accounts, such as HSAs, HRAs, LSAs, FSAs, and many more. Organizations can efficiently centralize their pre-tax benefits, offering a convenient and unified access point for employees and employers.

Employees prioritize Forma over other HSA providers because of its simple redemption process for HSA allowances on healthcare products and services of their choice. Forma’s capabilities empower managers, HR, and compliance officers to create custom HSA plans via a streamlined web dashboard, which results in crucial time savings.

Why Choose it?

• Customizable spending accounts that include HSAs, HRAs, flexible spending accounts, lifestyle spending accounts, etc.
• Simple redemption process 
• User-friendly interface 
• streamlined reimbursement process
• Easy Investing 
• 24*7 customer support 
• Real-time analytics tools 

Pros 

• Diverse investment choices 
• Intuitive user interface 
• Competitive fee structure 

Cons

• Non-medical HSA withdrawals are subject to income tax 

Comparison Chart of 11 Best HSA Providers

Let’s better understand these best HSA providers with the help of a comparison table. 

End Note

Now that we have listed the 11 best HSA providers, they can help you set up HSAs for your employees. Key features such as investment options, fee structure, and customer service considerations can help you reach a decision that will be fruitful for the organization.

So, if you are seeking a streamlined solution with no connected strings, consider the above-stated best health savings account providers for your qualified medical expenses.