Best Health Savings Account (HSA) Providers of 2024

The Bottom Line

With dozens of HSA providers on the market, one clear winner is Fidelity. It beats out other companies in most categories, including as it relates to fees, interest rates, and investment options. It may be especially attractive for investors who already use Fidelity and like its interface and low-cost fund options.

However, Fidelity isn’t necessarily right for everyone. For example, HealthEquity is one of the most popular HSA providers and is an excellent option for those who want robo-advisory services and a curated list of Vanguard investments. On the other hand, Bank of America is an excellent option for existing Bank of America customers or anyone who prefers to work with a big bank.

Guide to Choosing the Best Health Savings Account

What Is a Health Savings Account and How Does It Work?

A health savings account (HSA) is a tax-advantaged account specifically designed for healthcare expenses. This type of account allows you to set aside pre-tax money each year. In 2024, an individual can contribute $4,150 to their HSA and a family can contribute up to $8,300. You can withdraw your funds tax-free to pay for qualified medical expenses at any point in the future.

“An HSA works almost like a 401(k) plan as your contributions are made pre-tax, meaning that your contributions reduce your taxable income,” says Jamieson Hopp, a certified financial planner with Millennial Wealth, LLC.

These accounts have what’s known as a triple-tax advantage. In addition to the tax-free contributions and withdrawals (as long as you spend the money on qualified healthcare expenses), you can also invest the money in your HSA and have tax-free investment growth.

“The growth on the account is tax-deferred, meaning any capital gains, interest, or dividends are not taxed within the account,” Hopp says.

When Can You Apply for a Health Savings Account?

To open and contribute to an HSA, you must be enrolled in a high-deductible health plan (HDHP) and not covered under any other health insurance or enrolled in Medicare.

The threshold for an HDHP is adjusted each year to account for inflation. In 2024, an HDHP’s requirements are:

These amounts change over time due to inflation. For example, 2024’s amounts are an increase from 2023. In 2023, the individual coverage limit was $1,500, and $3,000 for family coverage. The out-of-maximum was $7,500 for individual coverage and $15,000 for family coverage.

You can set up your HSA on the first day of any month when covered under an HDHP. Many employers offer HSAs, which you can set up when you sign up for your benefits. However, you can also sign up for your own HSA through a third-party provider anytime. 

What to Look for in a Health Savings Account

Every HSA offers the same essential benefits of the triple-tax advantage and the ability to spend the money in your account on qualified medical expenses. However, once you look past those standard HSA features, you’ll find significant differences from one provider to the next.

Here are a few things to look for in an HSA:

Account Fees

First, consider what fees you’ll pay on an HSA. Some providers charge a monthly management fee, while others don’t. Other standard fees may apply for transferring money from your account, removing excess contributions, receiving paper statements, and more.

Interest Earnings on Cash 

Most HSA providers offer a modest APY on the uninvested money in your HSA. If you plan to keep a large sum of money in your HSA and don’t plan to invest it, you may want an account with a higher APY.

Investment Options 

Besides serving as a savings account, an HSA can also serve as an investment account. If you plan to invest your HSA balance, especially for long-term savings, consider each provider's investment options. Some may only have a small menu of mutual funds, while others offer thousands of different investments.

Customer Support

If you ever need help with your HSA, you’ll thank yourself for choosing a provider with excellent customer support. Consider looking for a provider that offers the type of communication you prefer (phone, online chat, email) at hours that work for you, and has support tools that will benefit you.

Expense Management

Managing healthcare receipts—which can be submitted decades in the future—can quickly become a new type of consumer headache. Ensure your HSA plan offers some type of app or tracking system for documenting expenses as they occur. 

Tips for Maximizing Your HSA

HSAs can be powerful financial tools when used correctly, mainly thanks to their tax advantages and investment opportunities. Here are a few steps to maximize your HSA for the most benefit.

Contribute as Much as You Can

Ideally, you’d be able to contribute up to the IRS limit for HSA contributions to fully enjoy this account's tax benefits. However, even if you can’t contribute $4,150 in 2024 (or $8,300 if you have a family), contribute the most your budget will allow.

Take Advantage of an Employer Contribution

Around 83% of employers offer a contribution to employee HSAs, according to October 2023 research from the Kaiser Family Foundation. On average, employers contribute $657 annually to single-coverage employee HSAs. Most firms contribute between $400 to $799 annually.

However, your account contribution limit is the same whether the contributions come from you or your employer. “If your employer contributes to the HSA, you will need to reduce your maximum contribution by [the amount of] their contribution,” says Hopp.

Consider a Long-Term Savings Strategy

The real purpose of an HSA is to help individuals and families with high-deductible health plans save for medical expenses. However, you don’t necessarily have to use yours that way. Many people pay medical expenses out of pocket and use their HSAs as a long-term savings tool.

“It is generally best to pay your ongoing medical expenses out of pocket while you can and let the HSA grow over time, as your account balances that aren’t used will roll over year over year,” says Hopp. “There is no use-it-or-lose-it stipulation with an HSA.”

An HSA can be an excellent addition to your retirement savings strategy. Not only can you use the money in your HSA for healthcare expenses during retirement, but you can also access it penalty-free once you reach age 65—you’ll just have to pay income taxes on any money not used for qualified medical expenses. 

Invest Some or All of Your Balance

As we’ve discussed, most HSA providers allow you to invest your HSA balance. You may have a minimum balance requirement before you can invest. But once you fulfill that requirement, you can invest the remainder of your contributions into mutual funds and other securities. 

The investments you choose from depend heavily on your chosen provider. Some HSA providers offer only a handful of mutual funds, while others offer you the choice of thousands of stocks, bonds, funds, and more. No matter what you decide to do with your HSA contributions, choosing investments that correspond to your goal is important.

For example, if you take a long-term savings approach with your HSA, you might decide to invest in various stock funds, including those with an added level of risk. Or you can choose target date funds according to your future retirement year. You can afford the increased risk thanks to the long time horizon until you retire.  

Avoid Spending on Non-Qualified Expenses

An HSA’s key benefit is its tax savings. However, you can only enjoy the full tax benefits of the HSA if you follow the withdrawal rules. To maximize your HSA, avoid spending on non-qualified expenses. Any money withdrawn for purposes other than qualified medical expenses will be subject to income taxes and a 20% additional tax.

Compare Health Savings Accounts

Here’s how our top picks stack up against the competition. Table includes the interest paid on $4,300, the average amount most U.S. adults have in their HSA account. 

*Lively charges this annual fee if you don’t keep $3,000 in your cash account and wish to invest.