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Tuesday, March 5, 2024

The 10 Best Health Savings Account (HSA) Providers for Individuals in 2024

Looking to open or switch your health savings account (HSA) in 2024? Competition among HSA providers is heating up, bringing more affordable fees, improved investment options, and better customer service.

This article reviews and compares the top 10 best HSA account providers for individuals in 2024 based on fees, investment choices, customer service, and more.

HSA Account Ranking Criteria

With hundreds of HSA providers to choose from, I used the following key factors to evaluate and select the best individual HSA accounts:

Costs

Investing Options

Features

  • HSA debit card for easy spending
  • Easy-to-use online platform
  • Good mobile app
  • Responsive customer service

Using these criteria, here are my top picks for the best HSA accounts in 2024:

Also Read: What is a Health Savings Account (HSA)? HSA basic principles 2024

The 10 Best HSA Providers for Individuals

ProviderKey Features
LivelyBest Overall – $0 account fees, excellent web/mobile experience, self-directed brokerage via Schwab
FidelityTop Pick for Investing – Wide range of investment options with $0 account fees
Lake Michigan Credit UnionBest Interest Rates – Up to 0.7% APY on cash balances

Lively – Best Overall HSA Account

Lively is my choice for the best overall HSA because of its combination of $0 account fees, an excellent web and mobile experience, and access to investing through a self-directed Schwab brokerage account.

With Lively, you can invest HSA funds commission-free in stocks, ETFs, bonds, CDs, and more. Or, keep your funds in the Lively cash account earning a modest interest rate.

Other key features:

  • $0 monthly fees
  • Free HSA debit card
  • Easy-to-use web and mobile app
  • Responsive US-based customer service

Overall, Lively checks all the boxes for a top-notch hassle-free HSA account.

Fidelity – Best for HSA Investing

Fidelity stands out for its wide selection of investment options accessible through a self-directed HSA brokerage account.

With $0 in account fees, you can invest your HSA for free in stocks, bonds, mutual funds, CDs and more. Fidelity offers a managed account option too, for a 0.35% annual fee.

Other Fidelity HSA features:

  • $0 monthly fees
  • Access to Fidelity’s branch locations
  • FDIC insurance protection on cash balances
  • Excellent investment research and planning tools

For hands-off investing, the Fidelity HSA is tough to beat.

How to Choose the Best HSA Account

When picking an HSA, focus first on finding low or no account fees to maximize your savings over time. Then consider whether you want investment capabilities or plan to just spend HSA funds on medical expenses.

Here are a few other tips for choosing the right HSA:

  • Check employer options first – Some companies offer HSA payroll deductions and may cover fees
  • Consider investment goals – Self-directed brokerage accounts provide the most flexibility
  • Compare cash account rates – Even a fraction of a % difference compounds over time
  • Read reviews – Check ratings on Google, BBB, and other review sites

Can You Transfer HSA Accounts?

Yes! You can roll over an existing HSA balance to a new provider at any time. And you can have multiple HSA accounts simultaneously.

Full and partial transfers are allowed. Just be aware that your current HSA provider may charge a closure or transfer fee.

The Benefits of HSAs

In addition to paying for current healthcare expenses, HSAs offer unique tax-advantaged savings and investment opportunities.

Key benefits include:

  • Triple tax advantage – Contributions are pre-tax, growth is tax-free, withdrawals for qualified medical expenses are tax-free
  • Unlimited rollover – Balances roll over year to year
  • Portable – You own the account and can take it with you if you change jobs
  • Retirement usage – Spend on anything after age 65 without penalty

For maximizing and investing health savings, HSAs simply can’t be beat.

Frequently Asked Questions – FAQs

Can I switch my HSA provider?

Yes, you can switch HSA providers at any time with full or partial transfers, but be aware of potential closure or transfer fees.

What are the benefits of HSAs?

HSAs offer a triple tax advantage, unlimited rollover, portability, and retirement usage without penalties after age 65.

How should I choose the best HSA?

Focus on low or no account fees, consider investment goals, compare cash account rates, and read reviews for a well-informed decision.

Can I have multiple HSA accounts?

Yes, you can have multiple HSA accounts and initiate full or partial transfers between them.

What are the key features to look for in an HSA?

Look for HSA debit card functionality, low fees, investment options, an easy-to-use online platform, and responsive customer service.

What is the retirement usage of an HSA?

After age 65, you can withdraw money from an HSA for any reason without penalties, similar to an IRA.

Find the Best HSA for You

I hope this breakdown of the top HSA accounts has helped you identify some strong options to consider as you manage healthcare expenses.

Take advantage of free transfers to move existing balances as better investment opportunities or rates arise over time.

Carefully consider fees, convenience factors, and customer service as you determine the right health savings account provider for your needs.

What HSA provider do you currently use? Are you considering switching to one of the options listed here?

Let me know in the comments!

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