My Fidelity HSA Account Review (Updated for 2024)

This Fidelity HSA review has been updated for 2024. If you’ve completed research in an attempt to find the best HSA account (see our rankings), you’re probably well aware that it is a bit of the “Wild West” out there. Because health savings accounts (HSAs) are still a relatively new type of investment account (they didn’t even exist prior to 2003), they have been slow to get the attention and resources of the big players in the investment brokerage world.

In fact, until recently, zero of the largest investment brokerages – Vanguard, Schwab, Fidelity, E-Trade, and Ally Invest – offered HSA accounts for individual investors (though Schwab has offered self-directed accounts to other HSA providers).

What we’ve been left with is a number of small independent banks that don’t specialize in investment accounts, taking lead. A small bank creating an investment platform on its own is near impossible, so the HSA administrators that are out there typically charge annoyingly high fees for the administration of the HSA account, as it is their only revenue source from the account, then outsource the investment component to a 3rd party (usually Schwab). Or, alternatively, they offer no brokerage investment options at all.

Fortunately, this is no longer the case. Fidelity now has individual HSAs. In doing so, they have become the first large investment brokerage to break into the HSA space for individual investors. Fidelity had previously offered employer-sponsored HSA accounts, but not individual HSAs.

This is a promising development for the personal finance world. And, it’s a scary development for existing HSA administrators, most of whom are very underwhelming in their investment offerings. So, what I wanted to do here is provide a Fidelity HSA review.

For starters, if you’ve been following along, you know that I’m a big fan of HSA accounts. After getting a 401K match, I believe that HSAs are the best type of retirement account to contribute to. HSAs offer tax-free contributions (and investment growth), while withdrawals for qualified medical expenses are also tax-free. HSAs are portable, meaning you own the account and can take it with  you from one employer to another or to self-employment. And if you don’t use HSA funds for medical expenses, you can withdraw them in retirement – for any purpose – just like an IRA, without penalty, starting at age 65.

Meanwhile, Fidelity previously slashed its fees in order to compete directly with Vanguard and Schwab, when it announced:

1. Zero minimum investments to open accounts
2. Zero account fees (including account closing/transfer)
3. Zero domestic money movement fees (e.g. bank wire)
4. Zero investment minimums on Fidelity retail and advisor mutual funds and 529 plans
5. Significantly reduced and simplified pricing on existing Fidelity index mutual funds
6. Zero expense ratio mutual funds (Fidelity ZERO Index Funds)

Also in recent years, Fidelity’s commission-free ETF lineup was expanded to 2,500+, and all ETF and stock trade fees were eliminated.

And, finally, even if you already have an existing HSA account, you can get a Fidelity HSA. Anyone can have multiple HSA accounts (similar to IRAs) and can contribute to an HSA outside of employer payroll deductions – though you will want to make sure you first get any employer matching to your employer-sponsored HSA. Note that you must have a qualified HDHP to initially get and then continue contributing to an HSA.

Fidelity has 2 types of HSA accounts – let’s review both of them in more detail.

Fidelity HSA Self-Directed Brokerage Account Review Details

I’ve taken an in-depth look into Fidelity HSA self-directed brokerage account details, and here is what I found:

• Account Type: participants choose (self-directed) their own investments.
• Minimum Balance: There is no minimum balance to open a Fidelity HSA.
• Opening Fee: There are no account opening fees or money transfer fees.
• Trading Fees: $0 for stocks and ETFs.
• Account Management Fees: no account management fees.
• Maintenance Fees: no monthly account maintenance fees for individual HSAs.
• Investment Options: It appears that the full array of regular Fidelity investment options are available within HSAs. Standard Fidelity investment commissions apply.
• Investment Minimums: There are no investment minimums on Fidelity retail and advisor mutual funds.
• Debit Card: Fidelity HSA accounts come with a Fidelity debit card.

Fidelity Go HSA Account Review Details

Fidelity’s 2nd type of HSA account, “Fidelity Go”, is newer. Here’s the details:

• Account Type: Fidelity Go HSA accounts are managed by Fidelity, “We choose and manage your investments for you, taking into account your goals and risk tolerance.”.
• Minimum Balance: There is no minimum balance to open a Fidelity HSA.
• Opening Fee: There are no account opening fees or money transfer fees.
• Trading Fees: no trading fees (Fidelity manages).
• Account Management Fees: $0 for under $25,000 and 0.35% per year for $25,000 and above.
• Maintenance Fees: no monthly account maintenance fees for individual HSAs.
• Investment Options: Fidelity-managed. Invests in Fidelity Flex^® mutual funds which do not charge management fees or, with limited exceptions, fund expenses.
• Investment Minimums: There are no investment minimums.
• Debit Card: Fidelity HSA accounts come with a Fidelity debit card.

Fidelity Go HSA also touts “unlimited 1-on-1 coaching calls”, which seems like a nice pro.

Fidelity HSA Review Bottom Line

I’ve funneled a portion of my existing HSA balances over to a new Fidelity brokerage HSA and can confirm all of the above information in this review. It’s hard to go wrong with a Fidelity HSA account from a fee and investment perspective. I personally prefer the self-directed HSA option over the newer Fidelity-managed “Go” HSA option for the lowest fees and investment options, but not everyone will have that preference. And to clarify, I have no relationship with Fidelity, financial or otherwise. I’d also recommend taking a look at Lively, which has a very similar offering (with no added fees to invest), but is focused 100% on HSAs.

Fidelity HSA Discussion:

• Who is your current HSA administrator? Why?
• Is Fidelity’s new HSA offering appealing to you? Why or why not?

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