The 10 Best Health Savings Account (HSA) Providers in 2023

If you’re looking for the best HSA account provider in 2023, you’re in the right place. And if a Health Savings Account (HSA) hasn’t been top of mind for you – there’s been no better time to start or switch to a new HSA account with plenty of new entrants into the space. HSA funds are portable, meaning that individuals with HSA balances can move funds at any time to a new account, even if they currently sit in an employer-sponsored HSA (many of which are lacking in features and investment options). This article will review and rank the best HSA accounts in 2023 available to individuals and families (outside of employer-sponsored offerings) – including fees and investment options.

The entrance of Lively, Starship, and Fidelity and re-entrance of Bank of America into the individual (non-employer) HSA account space, each with very competitive offerings, has resulted in an industry-wide reduction of HSA account fees and improvement to HSA investment account options.

Best HSA Account in 2023

Best HSA Account Ranking List Criteria

There are a lot HSA account providers out there. That’s great for customer choice, but it makes finding the best HSA account very difficult. Most HSA accounts are through banks or credit unions and very few of them allow you to invest your savings in anything outside of their own savings and money market accounts. With bank rates as low as they have been in recent years, those yields are very small. And, sadly, some of the big online investment brokers do not offer an HSA account option.

With that said, here is the main criteria we used to rank the best HSA accounts:

  1. Debit Card: does the HSA come with a debit card for simple HSA-eligible qualified medical expense tracking? The best HSA accounts do.
  2. Setup Fees: are there setup or opening fees? If so, look elsewhere. HSA accounts with setup or opening fees were cut from our list of the best HSA accounts.
  3. Maintenance Fees: are the HSA account fees close to zero or very minimal? For a number of years, most HSAs had very high fees, including annual or monthly maintenance fees. Those with high base account fees did not make this list.
  4. Savings, Investment, or Both: Does the HSA have only a save-and-spend savings account, or also an investment account? The top HSA accounts have both. Each account that made this list had some type of investment account option. If you can’t invest a portion of your funds in higher yield investments, as you would in a 401K or IRA, the value of your HSA contributions will erode from inflation every year. I also want to note that since all HSA accounts have a saving account option, and savings rates at nearly every one of them is close to zero, so the proficiency of savings rates did not factor in to my best HSA account ranking at all in 2023.
  5. Self-Directed Brokerage or Managed Funds: if the HSA offers an investment account, do you only have a small list of curated funds to choose from or a managed account? A self-directed brokerage account option is preferable here, so you can choose low cost options versus being stuck with high-fee funds.
  6. Investment Fees: if the HSA offers an investment option, what are the fees to invest, management fees, and the ongoing expense ratios of the funds you have to choose from? The lower the fees the better.
  7. Reputation: is the bank, credit union, broker, or other HSA administrator reputable and do they have good customer reviews?

The Best HSA Accounts in 2023

Based on the criteria above, I’ve ranked the best overall HSA accounts in 2023 in the chart below and provided my best overall, best investing, and best savings HSA choices.

Best HSA Account Overall: Lively

Lively is my choice for the #1 best HSA account overall. With its low fees and multiple investment options (self-directed brokerage account through Schwab or Devenir managed funds options), Lively is a great choice for anyone. There are no fees for the base account at Lively, while the Schwab self-directed brokerage account option is either $0 if your Lively cash balance is $3,000+ or $24 annually if below that. The Devenir managed option has a 0.5% annual management fee – so the Schwab option is the more affordable route for most.

Existing Lively customers with a TD Ameritrade self-directed brokerage account option will transition to a Schwab account automatically around September of 2023 (Schwab purchased TD Ameritrade a few years ago). Lively is 100% focused on HSAs as a company and their website and support is transparent, detailed, educational, and responsive – a rarity in the HSA space.

best HSA account

Best HSA Account for Investing: Lively & Fidelity (Tie)

The best HSA account for investing is a tie between Lively (via Schwab) and Fidelity, which both offer self-directed brokerage account options for their HSAs, with no additional account management fees (balance at Lively must be $3,000+). Self-directed is how I prefer to invest, as it gives the most personal choice and the potential for the lowest overall fees (any HSA provider has standard fund expense fees). Both brokerages offer an extensive selection of stocks, bonds, ETFs, and mutual funds to choose from, with $0 in trading fees on their respective platforms. If you do want managed investment options Lively (via Devinir) and Fidelity (via their new “HSA Go” managed account) both offer this as an option, but I would personally avoid due to the management fees charged. I’d give the slight nod to Schwab’s investing platform vs Fidelity in terms of user friendliness.

best HSA account for investingbest HSA account for investments

Best HSA Account for Savings (Non-Investment Cash Balances): Lake Michigan Credit Union

The Lake Michigan Credit Union HSA is my choice for the Best HSA account if all you want to do is hold your money in a cash savings account (non-investment cash balance). LMCU, a reputable credit union, offers an interest-bearing (though currently low) base account with zero added maintenance fees (it also has an investment option if you do want to begin investing later). This type of account may be preferable for those with small balances who plan to save-and-spend versus building up a larger balance over time.

best HSA account for savings

Unfortunately, even with Federal Reserve rate increases, interest rates on cash balance savings accounts are are still at historically low levels, including at Lake Michigan Credit Union, typically under 1% APR. If you don’t want to invest in stock or bond mutual funds, but you still want a reasonable investment return, you may be better off going with Lively or Fidelity as their self-directed brokerage options allow you to purchase CDs or money market mutual funds with no minimums – both of which have recently offered rates over 4% APR. I’ve found Schwab’s new issue CD purchasing to be easier to navigate than Fidelity’s.

Best HSA Accounts: Top 10 HSA Provider Comparison Chart

Here is a breakdown of the top 10 HSA account providers, including maintenance and other fees, investment options, investing fees, and other criteria:

Best HSA Account Provider Ranking:HSA Account Provider:Base HSA Account Fees:HSA Investment Account Options & Fees:HSA Account Pros:HSA Account Cons:
1Lively HSA- Setup fees: $0
- Monthly maintenance fees: $0
- List of HSA fees: Lively HSA fees
- Investment Options: Lively offers a Schwab self-directed brokerage account option + a Devenir managed funds option..
- Investment Account Fees: Schwab self-directed: $0, with $3K+ in base Lively account, or $24 annual access fee. Devenir: 0.5% annual management fee.
- no account management fees for base account.
- self-directed brokerage option with no added fees when Lively cash balance is $3,000+.
- focused on HSAs.
- Devenir management fund option fee is 0.5%, so account is best for self-directed investing.
2Fidelity HSA- Setup fees: $0
- Monthly maintenance fees: $0
- List of HSA fees: Fidelity HSA fees
- Investment Options: "Fidelity HSA" self-directed brokerage account option + "Fidelity Go HSA" managed funds option. Check out my in-depth Fidelity HSA review for more details on both.
- Investment Account Fees: Self-directed "Fidelity HSA": $0. "Fidelity Go HSA": $25K+ balance 0.35% annual management fee, $0 if below.
- no account management fees for base account.
- self-directed brokerage option with no added fees.
- "Fidelity Go HSA" fee is 0.35% for $25K+ balances, so account is best for self-directed investing.
- large broker not focused on HSAs.
3Elements Financial HSA- Setup fees: $0
- Monthly maintenance fees: $0 if ave. cash balance is $2,500+. $4/mo. if below.
- List of HSA fees: Elements Financial HSA fees
- Investment Options: Elements Financial offers a small "interest dividend" based on account balance + a self-directed brokerage option via TD Ameritrade (transitioning to Schwab) if balance is $2,500+.
- Investment Account Fees: $0.
- self-directed brokerage option with no added fees.- $4/mo. base account management fee if balance is below $2,500.
4HSA Bank- Setup fees: $0
- Monthly maintenance fees: $0 if ave. cash balance is $3,000+. $2.25/mo. if below.
- List of HSA fees: HSA Bank fees
- Investment Options: HSA bank offers a self-directed account option via TD Ameritrade (transitioning to Schwab) + a Devenir managed funds option.
- Investment Account Fees: $0 for self-directed option. Devenir: 0.3% annual management fee (invoiced quarterly).
- self-directed brokerage option with no added fees.
- focused on HSAs.
- $2.25/mo. base account management fee if balance is below $3,000.
- Devenir management fund option fee is 0.3%, so account is best for self-directed investing.
5Further HSA, by Health Equity (formerly "Select Account")- Setup fees: $0
- Monthly maintenance fees: $1, $3, or $4/mo. plan options.
- List of HSA fees: Further HSA Fees
- Investment Options: Further investment options when balance exceeds $1,000: choice of 30 mutual funds. If balance is $10,000+, you can also open a self-directed account via Schwab.
- Investment Account Fees: $18/year.
- self-directed & mutual fund investment options for a reasonable fee.
- focused on HSAs.
- $1, $3, or $4/mo. base account management fee.
- $18/year investment account fee.
6Lake Michigan Credit Union HSA- Setup fees: $0
- Monthly maintenance fees: $0
- List of HSA fees: Lake Michigan Credit Union HSA fees
- Investment Options: For balances > $1,000, LMCU offers a choice of 20 funds to invest in.
- Investment Account Fees: $30 annual fee.
- no account management fees for base account.
- customer-focused & owned credit union.
- no self-directed brokerage option.
- $30 annual fee for investment option.
- HSA deposit earning rates are lower than expected.
7Bank of America HSA- Setup fees: $0
- Monthly maintenance fees: $2.50/mo.
- List of HSA fees: Bank of America HSA fees
- Investment Options: Bank of America offers a choice of 38 mutual funds
- Investment Account Fees:
- $0 added account management fees for mutual fund option.- $2.50/mo. base account management fee.
- no self-directed brokerage option.
- large bank not focused on HSAs.
8Optum Bank HSA, by Optum & United Health Group- Setup fees: $0
- Monthly maintenance fees: $0 if ave. cash balance is $5,000+. $3.75/mo. if below.
- List of HSA fees: Optum Bank HSA fees
- Investment Options: If balance is $2K+, Optum Bank offers a choice of 30 funds or a managed portfolio with Betterment..
- Investment Account Fees: $0 for mutual funds. Betterment has a $4/mo. management fee (0.25% on balances $20,000+).
- Betterment is an interesting managed fund alternative to Devenir (and cheaper).- no self-directed brokerage option.
- $3.75/mo. base account management fee if balance is below $5,000.
- Betterment has a large fee for $20,000+ balances.
9Starship HSA, by Optum & United Health Group- Setup fees: $0
- Monthly maintenance fees: $0
- List of HSA fees: Starship HSA fees
- Investment Options: Starship HSA offers a choice of 3 investment portfolios.
- Investment Account Fees: $1/mo. for investment balances below $5,000. Additional .35% management fee per year for balances $5,000+.
- no account management fees for base account.- no self-directed brokerage option.
- .35% management fee per year for balances $5,000+ is too high.
10Health Equity HSA- Setup fees: $0
- Monthly maintenance fees: $0
- List of HSA fees: Health Equity HSA fees
- Investment Options: Health Equity offers a choice of 29 Vanguard mutual funds.
- Investment Account Fees:
For fund investing, 0.03% per mo. on the ave. daily invested balance (0.36% per year), with $10/mo. fee cap. Advisory services available at extra cost.
- no account management fees for base account.
- focused on HSAs.
- no self-directed brokerage option.
- 0.36% investment management fee per year, with $10/mo. fee cap is too high.

Can you Switch HSA Accounts? Or have Multiple HSA Accounts?

When I first signed up for an HSA, I wondered how married I would be to a particular HSA account. Could I switch if I didn’t like mine, just like I could with an IRA? Could I have more than one account? I’ve since done a lot of research on this topic.

If you or your employer have picked a poor HSA account admin, the good news is that you are not stuck with them. Just as with IRAs, you can switch if you are not happy with your administrator’s policies and fees. A person contributing to an HSA is under no obligation to contribute to his or her employer-sponsored HSA. And, you can contribute to an HSA outside of employer payroll deductions. Employers, however, may require that direct payroll contributions be made only to their sponsored HSA plan.

You can have more than one HSA account. And you can make transfers between accounts if you do not like one. Full HSA transfers or partial HSA fund transfers can be initiated at any time by starting a new account with the HSA provider of your choice.

The Pros of HSAs: The Best Account for Health Care Costs

Why curate and maintain a list of the best HSA accounts? I have previously noted that the HSA is my pick for the best retirement account (employer matching funds aside), in addition to being the best account for out-of-pocket health care costs. Why are HSAs the best? For these reasons:

  1. 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!
  2. HSA maximum contributions are significant – $3,850 per individual and $7,750 per family in 2023 and $4,150 per individual and $8,300 per family in 2024. That is a good amount of tax-free savings.
  3. HSA account contributions fully carry over from year-to-year (unlike with FSAs). In other words, HSA funds are not “use it or lose it”.
  4. You can do a one-time IRA to HSA rollover to boost your funds.
  5. If you have an employer sponsored HDHP with HSA, you may be eligible for HSA bonus incentives.
  6. You are the owner of your HSA account and your employer can’t take the funds away from you.
  7. HSAs are “portable”. This means that you can take an HSA with you from one employer to another, or even to self-employment.
  8. You can withdraw funds from HSA accounts in retirement similar to an IRA, without penalty, for any reason, starting at age 65.
  9. HSAs don’t have required minimum distributions at retirement age, like IRAs do.
  10. HSAs can now be used to pay for OTC medications, feminine hygiene and menstrual care products – in addition to all of the previous qualified medical expenses like doctor visits, prescription drugs, and more.

Remember, you must have an HDHP to get access to and then continue contributing to an HSA. You can withdraw from an HSA at any time, for a qualified medical expense, without penalty (even if you no longer have an HDHP). For more basics on HSAs, check out the above links and the full IRS HSA guidelines.

The Cons of HSAs

The challenge with HSAs, however, is that a lot of the big name financial players (e.g. major banks and investment brokers) aren’t in the HSA space. Many HSA administrators have a maze of fees to navigate as well, sadly. If you get stuck with the wrong HSA account provider, it can really cut into your HSA savings. You need to do your homework. In this article, I will do some of the heavy lifting, to get you started.

The HSA marketplace is still young, but quickly growing. HSAs are fairly new to the health insurance and investing worlds. They weren’t established until 2003. In 2008, only about 6 million Americans had one. But that number has more than quadrupled since, and there are now 32 million HSA accounts in the United States, with total HSA assets surpassing $100 billion.

HSA accounts can be started with banks, brokers, credit unions, and even insurance companies. Any company that offers an HSA is referred to as an “administrator” or “custodian”. HSAs were originally designed for modest deposits through payroll, followed by frequent small withdrawals. This is why most started and are still administered by banks and credit unions, which makes investing tricky, because most banks and credit unions don’t have their own investing platform. But, the good news is that you are not locked in. If you’re not happy with your current HSA(s), you can transfer your HSA funds to one of the best HSAs at any time.

Best HSA Account Provider Discussion:

  • Who is your current HSA account administrator and what are their fees, policies, and investment options?
  • Have you invested within your HSA account?
  • What is your pick for the best HSA account?

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