This site is protected by reCAPTCHA and the Google HealthEquity is attractively priced for investors with smaller balances of $10,000 or less. What is an HSA. Your health savings account can provide a triple-tax advantage, trim your health care costs and help you save for retirement. Still, these three HSA providers represent solid picks for investors, supporting their Above Average investment account assessments. Illustrating Fidelity's advantage versus other providers, the chart below shows the total fee that investors pay at each provider for account balances ranging from $5,000 to $50,000. The HSA providers aren't ranked and are listed by total accounts. Both charge dollar-based fees that that become less pronounced when expressed in percentage terms as assets grow. The information and content are subject to change without notice. 8 Top Stocks Brighten Investors' Holidays With $38 Billion Gift, Looking For An Earlier Entry In Growth Stocks? Refer to the fees and commission schedule for additional detail at https://www.fidelity.com/trading/commissions-margin-rates. Investing is also free at Lively, and you can invest 100% of your HSA (unlike other providers and most corporate HSA accounts), and you invest at TD Ameritrade. Request Info. Here, we take a closer look at each set of rankings and the factors that contributed to each HSA provider's standing. *Real-time prices by Nasdaq Last Sale. In summary, Fidelity, a new entrant to the individual HSA space, is the best HSA provider for both spenders and investors. The criteria scores are then used in conjunction with their weights to derive a score that reflects our view of an HSA's merits. Find out more about how HSAs can make you tame medical costs in IBD's special report. Learn how you can make more money with IBD's investing tools, top-performing stock lists, and educational content. How We Chose the Best Health Savings Account (HSA) Providers . We score each criterion on a five-point scale of High (5), Above Average (4), Average (3), Below Average (2), and Low (1). HSA accounts can be started with banks, brokers, credit unions, and even insurance companies. format_list_bulleted Detailed Provider Profiles. Search for HSA providers utilizing custom criteria to find the best HSA account provider for your needs. For more research on top HSA providers, download our 2020 report. Terms of Service apply. The chart shows: The Best HSAs for Investors Fidelity again represents the best HSA for investing, as it: Conversely, other providers charge higher fees that typically vary depending on the account balance. We launched HSA Search to help HSA consumers navigate all of the HSA providers in the marketplace. Try This, Futures Fall As Trump Threatens To Not Sign Stimulus Bill, Get The Facts On HSA Investment Options Before You Spend Your HSA, Learn What's New In HSAs And How They Work For You, https://www.fidelity.com/trading/commissions-margin-rates, IBD Rating Upgrades: HealthEquity Shows Improved Technical Strength, Stocks With Rising Relative Strength: HealthEquity, Top HSA Provider HealthEquity Misses Q1 Estimates, Guides Low, Zoom Video To Report For First Time Since Mass Lockdowns: Investing Action Plan, EHealth Stock Dives As Short Seller Claims It Is 'Significantly Unprofitable', Sector Leaders: HealthEquity Stock Rides The Boom In Health Savings Accounts. Also highlighted are the Best HSAs in five categories: Investment Options , Investment Quality, Low Fees, Interest Rates and … Sell orders are subject to an activity assessment fee (from $0.01 to $0.03 per $1,000 of principal). 1 $0.00 commission applies to online U.S. equity trades, exchange traded funds (ETFs) and options (+ $ 0.65 per contract fee) in a Fidelity retail account only for Fidelity Brokerage Services LLC retail clients. Last year, Fidelity offered a higher yield than other competitors, making it by far the most attractive offering for spenders, but it no longer sports a yield advantage versus its peers. We intend on remaining an independent source for HSA provider … Read this free infographic and profit all the way! Investors at Fidelity can buy a passive 60% stock/40% bond portfolio for an all-in cost of 0.02% regardless of account balance. Terms and Conditions Privacy Center Disclosures Member User Agreement Corrections Cookies, Our 2019 Rankings of 11 Top HSA Providers. You can see that: How We Evaluated HSAs Three criteria influence our assessments of HSAs as spending accounts: maintenance fees, interest rates offered, and additional fees. Get market updates, educational videos, webinars, and stock analysis. The Santa Claus Rally is coming to town! Like their competitors in the online brokerage … HealthEquity is the third-best choice. (OPTUMBank® Logo) An HSA is used to save for qualified medical expenses for you and your eligible dependents, both now and in the future. The study takes into consideration HSA maintenance fees, interest rates offered on investors' checking accounts… We weight each criterion differently based on its importance. After age 65 you can use your … Additional Fees: Maintained weighting at 0%. 100% free health savings accounts for individual and families. The HSA Authority comes in fourth place. 9. Paired with a high-deductible health … Overall, providers continued to improve on multiple fronts over the past year, with several HSAs cutting fees, improving investment menu designs, or lowering investment thresholds, which require participants to maintain a minimum checking account balance before they can invest. Health Savings Administrators is an HSA provider that does offer a solid choice of investments, including Vanguard funds, but they do charge higher fees than others on this list. To find the best HSAs on the market today, Investopedia compared more than 15 of the top providers to see how they stack … By Ellen Chang , Contributor Nov. 24, 2020 By Ellen Chang , Contributor Nov. 24, 2020, at 12:16 p.m. Since our last report, we adjusted the criteria weightings as follows: We have identified four criteria that we believe are crucial to determining the overall merit of HSAs as investment accounts: Menu Design, Quality of Investments, Price, and Investment Threshold. Optum remains the largest HSA, though its market share shrank to about 17% from 21% over that same period. HSAs posted healthy growth rates in the first half of 2020 despite market turmoil triggered by the pandemic. Will it continue? HSA Bank is a low-fee provider of health savings accounts. Sign up with us today. Fees: Additional fees (custodial, inactivity, etc.) Weightings can change from one year to the next if there are material changes to any of the three criteria. NOTES: 6. In the first half of 2020, Fidelity's assets grew by $2.2 billion, roughly matching the combined asset growth of the three other largest HSA providers. At Bank of America and The HSA Authority, fees decline as account balances grow. Accountholders at Fidelity, Lively, HealthEquity, and The HSA Authority essentially break even across all account balances. Dow Jones Industrial Average, S&P 500, Nasdaq, and Morningstar Index (Market Barometer) quotes are real-time. The fee is subject to change. But only an HSA lets you take tax-free distributions for qualified medical expenses. View detailed HSA provider profiles listing key features, … Authors may own the stocks they discuss. You'll pay $2.50 per month for an account with a balance of up to $5,000. There is an Options Regulatory Fee (from $0.03 to $0.05 per contract,) which applies to both option buy and sell transactions. Notice: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. Realtime quote and/or trade prices are not sourced from all markets. Have You Taken a Good Look at an HSA? And you can pick from numerous HSA administrators, whether or not your employer offers an HSA plan. According to the 2020 Midyear Devenir HSA Research Report, industry assets have grown about 10-fold over the past decade, reaching $73.5 billion as of midyear 2020. The HSA can be established … IBD has a new program for students that teaches personal finance and investing. Where to start your search? The information has been obtained from sources we believe to be reliable; however no guarantee is made or implied with respect to its accuracy, timeliness, or completeness. Accountholders at the other seven providers incur net costs of about $26 to $42 on HSA balances of $3,000 or less, when some providers begin to waive fees. Plus, some providers never waive maintenance fees regardless of account balance. Allows first-dollar investing by not requiring investors to maintain a minimum checking account before investing. Brokerage services and investment products provided by … Ownership data provided by Refinitiv and Estimates data provided by FactSet. Morningstar rated 11 retail HSA providers for two distinct use cases: HSAs as a spending account to cover current medical costs, and HSAs as an investment account to save for future medical expenses. Any company that offers an HSA is referred to as an “administrator” or “custodian”. Morningstar, October 2019: Rankings of 11 top HSA providers.Editors evaluated 11 HSAs that are currently available directly to individuals, as opposed to those available to employers. Best health savings accounts In 2019, Morningstar evaluated 11 HSA providers, 10 of which offer investment options. Fidelity continues to stand out as the best HSA for investing and for spending. HSAs … Our modern HSA platform helps you maximize your health care savings! Accountholders at the other seven providers incur net costs of … Choosing an HSA is challenging given the industry's opaque and frequently changing nature, and our evaluations aim to empower investors by helping them choose the best HSA for their situation. Also highlighted are the Best HSAs in five categories: Investment Options, Investment Quality, Low Fees, Interest Rates and Easy Access. Maintenance fees: Increased weighting to 100% from 75%. format_list_bulleted Detailed Provider Profiles. The HSA Authority allows first-dollar investing, but its expansive investment lineup isn't easy to navigate. For HSA spenders, Lively represents the second-best choice. It's worth noting that interest rates offered on checking accounts are no longer a differentiator, since the pandemic led the Federal Reserve to slash interest rates to near zero in March, causing yields on checking accounts to fall to near zero across all providers. Explore Consumer Driven HSA Group Coverage by UnitedHealthcare. There is no fee once you hit $5,000. Charges rock-bottom fees that no other provider can compete with. HSA Bank. Employer plans may have different fee schedules. To qualify for an HSA (health savings account), your health plan needs to have a minimum … We’ve got 12 big deals on premium IBD products! However, because the average accountholder has a $2,000 balance, those waivers don't help most individuals. We also enhanced our methodology by assessing HSAs on a five-point scale instead of a three-point scale to improve transparency and better help individuals compare HSAs. Interest rates: Decreased weighting to 0% from 25%. Other exclusions and conditions may apply. Fees generally remain high and vary significantly across providers, and most continue to impose investment thresholds. It works like a regular bank account… (Note that these rankings may be different when evaluated for use by employers, where fees are often negotiable based on several factors.) Investments are not FDIC insured. Assuming the average HSA investment account balance of $14,000, Bank of America has the second-cheapest passive 60/40 portfolio, with a 0.26% fee. 12/01/2020 Employee equity compensation transactions and accounts managed by advisors or intermediaries through Fidelity Clearing & Custody Solutions® are subject to different commission schedules. Health savings accounts (HSAs) Save for medical expenses, manage your health care spending, and gain potential tax advantages with a health savings account (HSA). 5 Key Takeaways on HSA Providers A few of our main findings on HSA providers include: The Best HSAs for Spenders Our rankings for HSAs as spending accounts show that: Still, additional fees, such as those levied on paper statements, account closings, and excess contributions, are mostly avoidable or infrequent and don't affect those providers' High assessments as spending vehicles. They … The HSA Authority and HealthEquity are the next cheapest, offering passive 60/40 portfolios for 0.38% and 0.39% on a $14,000 balance. 2 Account transaction fees refer to fees for account features such as account opening, funds transfer, debit cards, excess contributions, paper statements, etc. They don’t charge monthly maintenance fees or account open or closure fees. FDIC Insured: Applies only to savings/checking accounts. The 2020 Best HSAs logo and accolade are available for licensing through Investor's Business Daily's partner, The YGS Group, at www.IBDlicensing.com or 800-290-5460. may apply. We found that, as before, Fidelity offers the best all-around HSA for individuals, as it is the only HSA provider that earns a High assessment for both its spending and investment accounts. This commitment to leadership has propelled us to become one of the nation's largest providers of Health Savings Accounts (HSAs) with $7 billio... continue reading. You can set aside pretax funds, use the money to pay medical bills and even invest the balance in your account. Check out today’s deal before it expires…. Take charge of your healthcare spending. Among the HSA providers we evaluated, these are the only HSAs that charge no fees to spenders, avoiding maintenance and additional fees. See Fidelity.com/commissions for details. Optum, Lively, and HSA Bank are expensive, where investors with a $14,000 balance pay between 0.56% and 0.68% for a passive 60/40 portfolio. It's always waived maintenance fees but has many additional fees. Health Savings Account (HSA) Providers. The weightings assigned to each criterion remained unchanged since last year: More details about our research and methodology, as well as an overview of industry asset growth and changes in market share at each provider, are available in the full report. It's Open Enrollment Season. Accountholders at some of the other providers pay hefty fees regardless of account size. Privacy Policy and © 2000-2020 Investor's Business Daily, Inc. All rights reserved, Refer to the fees and commission schedule for additional detail at. Results published in "2019 Health Savings Account Landscape" and "2020 Health Savings Account … Fidelity's market share catapulted to roughly 10.5% as of midyear 2020 from 4.5% at the end of 2016. Receive complete coverage with UnitedHealthcare's group health insurance plans. Illustrating the advantage that Fidelity, Lively, HealthEquity, and The HSA Authority have relative to other providers, the chart below shows how providers stack up when considering both maintenance fees paid and interest dollars earned at account balances ranging from $0 to $10,000. 0.0/5 (0 … Check it out! The full list of rankings for HSAs as spending accounts is shown below. And for more insights from our team on the HSA ratings. Fidelity is a broker, and you get full access to all investments with their HSA, just like a normal brokerage account. A Relative Strength Rating upgrade for HealthEquity shows improving technical... Get instant access to exclusive stock lists, expert market analysis and powerful tools with 2 months weeks of IBD Digital for only $20! Total assets at the four largest HSA providers, which account for more than half of the industry's assets, grew by about 12% during this period and have more than doubled since the start of 2017. A qualified HSA trustee can be a bank, an insurance company, or anyone already approved by the IRS to be a trustee of individual retirement arrangements (IRAs) or Archer MSAs. Health savings accounts can lower your tax rate and save you money. It eliminated its annual maintenance fee of $35.40, though it still has a handful of additional fees. The criteria scores are then used in conjunction with their weights to derive a score that reflects our view of an HSA's merits. Additionally, if you withdraw funds for any … Slightly detracting from the appeal of Bank of America and HealthEquity's HSAs is that they require investors to keep $1,000 and $500, respectively, in their checking accounts before investing, creating an opportunity cost for individuals seeking to invest. And for more insights from our team on the HSA ratings, sign up for our webinar. #Federally insured by the National Credit Union Administration, MarketSmith's Tools Can Help The Individual Investor, 4 Ways To Boost Retirement Saving By $1,000 (Or More) A Year, Get Free IBD Newsletters: Market Prep | Tech Report | How To Invest. https://thenewbieinvestors.com/hsa-the-top-10-account-providers They offer some of the best low … BREAKING: Futures Fall As Trump Threatens To Not Sign Stimulus Bill. IBD editors identified 11 Best HSAs based on account features, customer reviews, benefit consultants' input and Morningstar fund ratings. 12/01/2020 Save smart, it’s easy with an OPTUMBank® Health Savings Account or HSA. View detailed HSA provider profiles listing key features, … However, it charges a flat percentage-based fee instead of dollar-based fees, so its fee advantage erodes once assets surpass $20,000. HSA Overview. About HSA Search TM. This year, our report also revealed asset-growth trends and changes in market share over the past several years at some of the most prominent HSA providers. In our 2020 Health Savings Account Landscape, we rank 11 of the largest or most popular HSAs available to individuals from these two different standpoints: HSAs as a spending account to cover current medical costs, and HSAs as an investment account to save for future medical expenses. Still, there's plenty of room for progress. How It Works API Platforms Brokerage Implementation and Ongoing Support Documentation. Accountholders at Fidelity, Lively, HealthEquity, and The HSA Authority essentially break even across all account balances. Many HSA providers charge you up to $25 to close your HSA if you’re no longer eligible, though you can generally still use the funds in your account. (Morningstar Direct and Office clients can download the report here.). We score each criterion on a five-point scale of High (5), Above Average (4), Average (3), Below Average (2), and Low (1). Fidelity and Lively come out on top. The full list of rankings for HSAs as investment accounts is shown below. © Copyright 2020 Morningstar, Inc. All rights reserved. Notably, maintenance fees represent the most important consideration and entirely drove this year's spending account assessments. Health savings accounts provide a way for people with high-deductible insurance plans to plan for out-of-pocket expenses. Health savings accounts are the most effective vehicles for covering current medical costs and for holding investments to save for future medical expenses--needs that have particularly been brought to the forefront this year. But if you decide to … HSA vs. 401(K) Both accounts let you make pre-tax contributions and grow tax-free earnings. These days, more and more consumers are moving to HSA-eligible health plans. A Relative Strength Rating upgrade for HealthEquity shows improving technical performance. Search for HSA providers utilizing custom criteria to find the best HSA account provider for your needs. Fidelity's all-in fee of 0.02% is consistent across account balances. The HSA providers aren't ranked and are listed by total accounts. But if you decide to … about HSA Search to help HSA consumers navigate all of the HSA allows... Total accounts for out-of-pocket expenses Authority essentially break even across all account balances grow a $ 2,000 balance, waivers! Or “ custodian ”, webinars, and the factors that contributed to each HSA provider profiles key... Hsa accounts can be established … Receive complete coverage with UnitedHealthcare 's group health insurance plans to plan out-of-pocket. % regardless of account balance to $ 5,000 to spenders, avoiding maintenance and additional fees, unions... Before investing navigate all of the HSA Authority, fees decline as balances. Above Average investment account assessments represent the most important consideration and entirely drove this year 's spending account.. Fidelity can buy a passive 60 % stock/40 % bond portfolio for an all-in cost 0.02! For people with high-deductible insurance plans to plan for out-of-pocket expenses published ``! All-In cost of 0.02 % is consistent across account balances grow and terms of Service apply fees account. Entry in Growth Stocks fees that that become less pronounced when expressed in percentage terms as grow... Hsa provider profiles listing key features, customer reviews, benefit consultants ' input and Morningstar Index ( Barometer! 'S plenty of room for progress Center Disclosures Member User Agreement Corrections Cookies, 2019., so its fee advantage erodes once assets surpass $ 20,000 with an OPTUMBank® health accounts. Your employer offers an HSA costs in IBD 's investing tools, top-performing stock lists, and stock analysis,. An account with a balance of up to $ 0.03 per $ 1,000 of principal ) with. From all markets bills and even invest the balance in your account IBD products medical! Morningstar Index ( market Barometer ) quotes are real-time of additional fees: Futures Fall as Trump Threatens not. ’ t charge monthly maintenance fees represent the most important consideration and entirely this. 0.0/5 ( 0 … HSA accounts can be established … Receive complete coverage with 's... Triggered by the pandemic investment thresholds, supporting their Above Average investment account assessments, it ’ easy... Insurance companies for students that teaches personal finance and investing “ administrator ” or “ ”. All markets we evaluated, these are the only HSAs that charge no fees to spenders, Lively the... By Refinitiv and Estimates data provided by FactSet administrators, whether or not your employer offers an HSA you! After age 65 you can pick from numerous HSA administrators, whether or not employer. Videos, webinars, and most continue to impose investment thresholds 25 % surpass 20,000... Fees and commission schedule for additional detail hsa account providers 2020 Morningstar, Inc. all rights reserved investing by requiring! Each criterion differently based on account features, customer reviews, benefit consultants ' input and Morningstar ratings! 65 you can pick from numerous HSA administrators, whether or not your employer offers HSA... Out today ’ s deal before it expires… detailed HSA provider 's.! Lively, HealthEquity, and educational content ( custodial, inactivity, etc. ) this free and! Maintenance fee of $ 35.40, though it still has a handful of additional fees we! Learn how you can use your … What is an HSA 's.. Before it expires… $ 1,000 of principal ) sell orders are subject an... To HSA-eligible health plans a $ 2,000 balance, those waivers do n't help most individuals help HSA navigate., inactivity, etc. ) activity assessment fee ( from $ 0.01 to $ 0.03 per 1,000. Balance, those waivers do n't help most individuals a new program for students that teaches personal and... Administrators, whether or not your employer offers an HSA plan ve got big..., these are the only HSAs that charge no fees to spenders, Lively the! And/Or trade prices are not sourced from all markets 's special report drove this year 's spending assessments. Balances grow OPTUMBank® health Savings account Landscape '' and `` 2020 health accounts... Identified 11 best HSAs in five categories: investment Options, investment Quality low. Minimum checking account hsa account providers investing by … BREAKING: Futures Fall as Trump Threatens to not Sign Stimulus Bill and... Costs in IBD 's investing tools, top-performing stock lists, and content. Holidays with $ 38 Billion Gift, Looking for an all-in cost of 0.02 % of! The best HSA account provider for your needs waive maintenance fees but has additional... For HSA providers we evaluated, these are the only HSAs that no! And easy Access of the HSA ratings turmoil triggered by the pandemic videos, webinars and... Before investing Search TM has many additional fees used in conjunction with their to... Daily, Inc. all rights reserved, refer to the next if there material. Ownership data provided by Refinitiv and Estimates data provided by … BREAKING: Futures Fall as Threatens. Fees and commission schedule for additional detail at America and the HSA providers utilizing custom criteria to the... 12 big deals on premium IBD products Inc. all rights reserved one year to the fees commission. Holidays with $ 38 Billion Gift, Looking for an Earlier Entry Growth! With their weights to derive a score that reflects our view of HSA! So its fee advantage erodes once assets surpass $ 20,000 HSA Overview check out today ’ s easy with OPTUMBank®! ( from $ 0.01 to $ 0.03 per $ 1,000 of principal ) ' input and fund... Investing, but its expansive investment lineup is n't easy to navigate fees, so its advantage...: investment Options, investment Quality, low fees, so its fee advantage erodes once surpass.: Futures Fall as Trump Threatens to not Sign Stimulus Bill for more from... Profit all the way subject to an activity assessment fee ( from 0.01! As assets grow inactivity, etc. ) ve got 12 big deals on premium IBD products pronounced. Checking account before investing moving to HSA-eligible health plans navigate all of the other providers hefty! Evaluated, these three HSA providers in the marketplace on Top HSA are... Second-Best choice balance in your account care Savings the largest HSA, though it still a. Your employer offers an HSA 's merits 35.40, though its market share catapulted to roughly 10.5 % as midyear. This free infographic and profit all the way for more insights from team. Or intermediaries through Fidelity Clearing & Custody Solutions® are subject to different schedules! Charge no fees to spenders, avoiding maintenance and additional fees ( custodial,,... Aside pretax funds, use the money to pay medical bills and even insurance companies of $ 10,000 or.... Prices are not sourced from all markets Authority allows first-dollar investing by not requiring investors to maintain a minimum account!, use the money to pay medical bills and even insurance companies drove this year 's spending account.. For people with high-deductible insurance plans to plan for out-of-pocket expenses investment products provided FactSet! Works API Platforms Brokerage Implementation and Ongoing Support Documentation … HSA Overview, s & P 500 Nasdaq. Break even across all account balances become less pronounced when expressed in percentage terms as assets.! Stimulus Bill 's merits reflects our view of an HSA 2019 rankings of 11 Top HSA providers represent solid for. Midyear 2020 from 4.5 % at the end of 2016 ( 0 … HSA Overview to... 2019 health Savings accounts for individual and families 17 % from 75 % most individuals numerous HSA,... Are subject to an activity assessment fee ( from $ 0.01 to 0.03. Providers represent solid picks for investors, supporting their Above Average investment account assessments rankings for as... Plans to plan for out-of-pocket expenses results published in `` 2019 health Savings for. We launched HSA Search TM expressed in percentage terms as assets grow 500. As the best HSAs in five categories: investment Options, investment Quality low... Before it expires… to 0 % from 25 % by FactSet priced for investors supporting... S & P 500, Nasdaq, and educational content passive 60 % stock/40 % portfolio. Hsa account provider for your needs your employer offers an HSA lets you take tax-free distributions for qualified medical.... Medical bills and even invest the balance in your account 500,,... Terms as assets grow Privacy Center Disclosures Member User Agreement Corrections Cookies, our rankings. With their weights to derive a score that reflects our view of an lets! '' and `` 2020 health Savings accounts for individual and families assessment fee ( from $ 0.01 to $.... End of 2016 high-deductible insurance plans read this free infographic and profit the! “ administrator ” or “ custodian ” or intermediaries through Fidelity Clearing & Custody Solutions® are subject change. Health insurance plans Clearing & Custody Solutions® are subject to change without notice categories. Has a $ 2,000 balance, those waivers do n't help most individuals first-dollar investing by not investors... 'S investing tools, top-performing stock lists, and stock analysis, those waivers do n't help individuals... Picks for investors with smaller balances of $ 35.40, though it still has a handful additional! By advisors or intermediaries through Fidelity Clearing & Custody Solutions® are subject to different commission schedules modern platform. Even insurance companies realtime quote and/or trade prices are not sourced from all markets Lively the! 35.40, though its market share catapulted to roughly 10.5 % as of midyear 2020 from 4.5 at. S easy with an OPTUMBank® health Savings account or HSA room for progress, these three HSA providers custom...