• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

The College Investor

Student Loans, Investing, Building Wealth

  • About
  • Podcast
  • Research
  • Contact
  • Save For College
      • How To Start

      • How To Save For College
      • How To Pay For College
      • What Is the Average Cost of College?
      • What Is A 529 Plan and Where to Open One in Your State
      • How Much Should You Have In A 529 Plan By Age
      • How To Use A 529 Plan For Private Elementary And High School
      • What Are Qualified Expenses For A 529 Plan (And What Doesn’t Count)?
      • The Best Brokers To Open A 529 Plan
      • Tools + Accounts

      • 529 Plans: The Ultimate College Savings Plan
      • 529 Plan Contribution Limits
      • Prepaid Tuition Plans | What To Know
      • Understanding And Using 529A ABLE Accounts
      • Using A Roth IRA To Save And Pay For College
      • FAFSA Deadlines for Financial Aid
      • CollegeBacker Review
      • Upromise Review
      • UNest Review
      • Other Options

      • Student Loan And Financial Aid Programs By State
      • The Guide To Military And VA Education Benefits
      • How To Fill Out The FAFSA
      • How To Find College Scholarships
      • The Best College Scholarship Search Websites
      • How To Find Grants To Pay For College
      • Pell Grants: What They Are And How To Qualify
      • Understanding Federal Work-Study
      • How To Use A 529 Plan If Your Child Doesn’t Go To College
  • Student Loans
      • Borrowing

        • How Student Loans Work
        • How To Apply For A Student Loan
        • Best Student Loans And Rates In January 2023
        • 10 Best Private Student Loans Of January 2023
        • Best Student Loans To Pay For Graduate School
        • Best Student Loans To Pay For Medical School
        • Parent Loans To Pay For College
        • No-Cosigner Student Loan Options
        • Guide To Income Sharing Agreements (ISAs)
        • Best International Student Loans
      • Get Out Of Debt

        • Best Student Loan Refinance Companies In January 2023
        • Best Student Loan Repayment Plans
        • Best Student Loan Refinancing Bonuses And Promotional Offers Of January 2023
        • Student Loan Forgiveness Programs (The Complete List)
        • The Full List Of Student Loan Forgiveness Programs By State
        • Public Service Loan Forgiveness (PSLF)
        • Top Student Loan Scams
        • Average Student Loan Monthly Payment
        • Average Student Loan Debt By Year
      • Reviews

        • Credible Review
        • Splash Review
        • Ascent Review
        • Citizens Bank Review
        • Commonbond Review
        • Earnest Review
        • ELFI Review
        • Laurel Road Review
        • LendKey Review
        • SoFi Review
  • Investing
      • How To Start

        • How To Start Investing in High School
        • How To Start Investing In College
        • How To Start Investing In Your Twenties For 22 – 29 Year Olds
        • How To Start Investing In Your 30s For 30 – 39 Year Olds
        • How To Start Investing With $100 Or Less
        • How To Give Kids The Gift Of Stock
        • What Is Dividend Growth Investing
        • IRA Rollover Chart
      • Tools + Accounts

        • Best Online Stock Brokers
        • The Best Traditional And Roth IRA Accounts
        • The Best Robo-Advisors
        • The Best Investing Apps
        • The Best Places to Trade Options
        • The Best Places To Open A Health Savings Account
        • The Best Solo 401k Providers
        • The Best Self-Directed IRA Providers Of 2023
        • Best Cryptocurrency Exchanges
      • Reviews

        • Vanguard Review
        • Fidelity Review 2023
        • M1 Finance Review
        • TD Ameritrade Review 2023
        • Charles Schwab Review
        • Robinhood Review
        • Webull Review
        • Betterment Review 2023
        • Wealthfront Review
  • Earn More Money
      • Extra Income

        • 20 Best Side Hustles You Can Start Earning With In 2023
        • 53 Side Hustle Ideas To Make Money Fast
        • 100 Ways To Make Money In College
        • 80 Ways To Make Money From Home In 2023
        • 5 Quick Money Making Ideas (That Take Less Than 1 Hour)
        • 10 Interesting Ways You Can Make Money Driving
        • High-Paying Side Gigs That Earn $1,000 or More Per Month
        • The 10 Best Money-Making Apps
        • Paid Surveys: Earn Money For Giving Your Opinion Online
        • 10 Crazy Ways To Make $10,000 You’ve Never Heard Of
      • Build Wealth

        • 40 Passive Income Ideas You Can Use To Build Wealth In 2023
        • 3 Ways To Make $50,000 Per Year Without Working With Passive Income
        • How To Become A Real Estate Investor With Just $500
        • 15 Best Online Business Ideas
        • Residual Income: 7 Super Smart Ways to Build It
        • The Most Common Multiple Income Streams
        • How To Become A Real Estate Mogul With Only $10,000
      • Reviews

        • Fundrise Review
        • RealtyMogul Review
        • FarmTogether Review
        • AcreTrader Review
        • Swagbucks Review
        • Survey Junkie Review
        • TopCashback Review
        • DoorDash Review
  • Personal Finance
      • Banking

        • 10 Best High Yield Savings Accounts Of January 2023
        • 10 Best Money Market Accounts Of January 2023
        • 10 Best Free Checking Accounts In January 2023
        • Best Bank CD Rates Of January 2023
        • 10 Best Business Checking Accounts In February 2023
        • Best Online Banks Of January 2023
        • Best Credit Unions Nationwide Of January 2023
        • Best College Student Checking Accounts Of January 2023
      • Insurance

        • Best Life Insurance Companies
        • Renters Insurance
        • Car Insurance
        • Pet Insurance
        • Umbrella Insurance
        • Disability Insurance
        • Tuition Insurance
        • Travel Insurance
      • Credit Tools

        • Best Budgeting Apps
        • Cash Advance Apps
        • How To Get A Free Credit Score Report
        • Best Credit Monitoring Services For 2023
        • Debt Settlement: Inside The Secret World
        • Credit Repair Explained: Should You Pay For Help?
        • Best Personal Loan Companies And Lenders
        • Online Loan Companies To Borrow From Home
      • Tax

        • Best Tax Software
        • Free Tax Software
        • IRS Tax Refund Calendar
        • Common IRS Questions and Errors
        • Federal Tax Brackets
        • Capital Gains Tax Brackets
        • 401k Contribution Limits
        • IRA Contribution Limits
        • HSA Contribution Limits
  • Forum
  • Search
Home » Investing » Health Savings Account » HSA Bank Review: An Experienced And Robust HSA Provider

HSA Bank Review: An Experienced And Robust HSA Provider

Updated: November 27, 2022 By Robert Farrington

Tweet
Share
Share
Pin
Email
Print

At The College Investor, we want to help you navigate your finances. To do this, many or all of the products featured here may be from our partners. This doesn’t influence our evaluations or reviews. Our opinions are our own. Any investing information provided on this page is for educational purposes only. The College Investor does not offer investment advisor or brokerage services, nor does it recommend buying or selling particular stocks, securities, or other investments. Learn more here.Advertiser Disclosure

There are thousands of financial products and services out there, and we believe in helping you understand which is best for you, how it works, and will it actually help you achieve your financial goals. We're proud of our content and guidance, and the information we provide is objective, independent, and free.

But we do have to make money to pay our team and keep this website running! Our partners compensate us. TheCollegeInvestor.com has an advertising relationship with some or all of the offers included on this page, which may impact how, where, and in what order products and services may appear. The College Investor does not include all companies or offers available in the marketplace. And our partners can never pay us to guarantee favorable reviews (or even pay for a review of their product to begin with).

For more information and a complete list of our advertising partners, please check out our full Advertising Disclosure. TheCollegeInvestor.com strives to keep its information accurate and up to date. The information in our reviews could be different from what you find when visiting a financial institution, service provider or a specific product's website. All products and services are presented without warranty.

HSA Bank Review

A Health Savings Account (HSA) offers triple tax benefits. It allows you to contribute pre-tax dollars and spend them tax-free on qualified medical expenses.

Then, after you reach age 65, your HSA funds can be withdrawn and spent just like retirement money! Learn more about how the HSA is like a secret IRA.

For these reasons, opening an HSA can be a great way to prepare for your near-term healthcare expenses and your retirement down the road. But to use an HSA, you’ll need to be in a high deductible health plan (HDHP).

There are a lot of expenses that qualify for use with an HSA. To get started, you’ll need an HSA provider to hold your HSA funds. In this article, we’ll review HSA Bank, which is one such HSA provider.

See how HSA Bank compares on our list of the Best HSA Providers.


HSA Bank

Quick Summary

  • Wide selection of DIY investing options with TD Ameritrade
  • Guided portfolios with auto-rebalancing also available
  • No monthly service fee
OPEN AN ACCOUNT

HSA Bank Details

Product Name

HSA Bank

Monthly Fee

$0

Account Minimum

$0

Investment Options

Extensive Through TD Ameritrade

Promotions

None

Table of Contents
Who Is HSA Bank?
What Do They Offer?
Are There Any Fees?
How Do I Open An Account?
Is My Money Safe?
How Do I Contact HSA Bank?
Is It Worth It?
HSA Bank FAQs
HSA Bank Features

Who Is HSA Bank?

HSA Bank is a leader in the consumer-directed healthcare industry. It provides HSA, FSA, and HRA accounts to individuals, employers, and partners.

HSA Bank began offering Medical Savings Accounts (MSAs) in 1997, but slowly began transitioning to HSAs. By 2004, it was only offering HSA accounts. In 2005, it became a division of Webster Bank, N.A. which is a subsidiary of Webster Financial Corporation. HSA Bank currently administers three million HSA accounts and has $10.7 billion in assets.

Currently, HSA Bank is not accredited by the Better Business Bureau (BBB). However, they have been actively responding to each complaint.

What Do They Offer?

HSA Bank offers medical-related savings accounts directly to consumers. These include:

  • HSA (Health Savings Account)
  • FSA (Flexible Spending Account)
  • HRA (Health Arrangement Account)

In this article, we’ll focus on their HSA product for members, which are individuals who buy an HSA directly from HSA Bank. Anyone who wants an HSA will need a High Deductible Health Plan (HDHP). Because of this restriction, not all health insurance plans qualify for an HSA. Health sharing plans are not insurance and do not qualify for an HSA.

In many cases, if you switch employers, your HSA can go with you. Unlike an FSA, an HSA isn’t a use-it-or-lose type of plan. Your funds will keep rolling over each year and be available for use with qualified medical expenses.

Related: HSA vs. FSA: Which Healthcare Savings Account Is Best?

Qualified Medical Expenses

To take advantage of an HSA, any spending must be on qualified medical expenses (QME). These include deductibles, co-insurance, prescriptions, dental and vision care, and a lot more.

To pay for QMEs, you can use your HSA debit card or pay out-of-pocket and later reimburse yourself from the HSA account. You can also withdraw funds from an ATM using your HSA debit card.

There are spending limits on the HSA debit card. You can spend $5,000 per day at merchants dedicated to healthcare, such as a doctor’s office or hospital. And $3,500 per day can be spent at merchants that are not healthcare-specific, such as grocery stores or retail stores.

HSA funds spent on non-QMEs are taxable and will incur a tax penalty. This penalty goes away after age 65. If at some point, you lose your HDHP, your HSA funds will remain with HSA Bank and can be used on QMEs. You just can’t contribute to the HSA anymore.

Contribution Limits

All HSAs have various contribution limits and these are the same across HSA providers. The following limits are for 2022.

Cell

Individuals

Family

Maximum Contribution Limit

$3,650

$7,300

Minimum Deductible

$1,400

$2,800

Maximum Out-Of-Pocket

$7,050

$14,100

Catch-up Contribution (55+)

$1,000

$1,000

HSA Investing

An HSA account is more than just a savings account. You can also invest your HSA funds once you have at least $1,000 in your account. With HSA Bank, if you want to invest in stocks, ETFs, mutual funds, and bonds, you can do so by using the TD Ameritrade Self-Directed Brokerage option. 

HSA Bank TD Ameritrade

Or you can go with the Devenir Guided Portfolio Self-Directed Investment Program which offers guided portfolios and automatic rebalancing.

HSA Bank Devenir Guided Portfolio

If you choose not to invest your HSA funds, you’ll earn the following APYs:

$25,000 or more

0.20%

$5,000.00 - $24,999.99

0.10%

Less Than $5,000.00

0.02%

Are There Any Fees?

HSA Bank no longer charges a monthly service fee on any of its accounts, which is a huge plus. Customers could potentially incur two fees (although both can avoided):

  • Printed HSA Account Summary Fee — $1.50 (can be waived by choosing e-statements)
  • HSA Closure Fee — $25.00

Also, the annual fee for the Devenir Guided Portfolio Self-Directed Investment Program is 0.30% of assets under management, invoiced quarterly, with a minimum fee of $1.50 per quarter. Note: The advisory fee is only assessed on the first $50,000 in your investment account.

How Does HSA Bank Compare?

HSA Bank makes it easy to open an HSA account and invest your funds once you've saved up at least $1,000. And it's one of the few HSA providers that charges no service fees regardless of account balance. If you want to see how HSA Bank compares, check out this quick chart:

Header
HSA Bank Comparison
HSA Bank Comparison: Optum Bank HSA
HSA Bank Comparison: Lively

Rating

Monthly Fees

$0

$2.75

(until min balance met)

$0

Min Deposit

$0

$0

$0

Min For Investing

$1,000

$1,000

$0

APY

Up to 0.20%

Not disclosed

0.01%

FDIC Insured

Cell
OPEN ACCOUNT
READ THE REVIEW
READ THE REVIEW

How Do I Open An Account?

You can visit the HSA Bank website to open an account. It only takes about 10 minutes to fill out the online application and there are no application fees.

HSA Bank review

Is My Money Safe?

Yes — HSA funds are on deposit with Webster Bank, which is an FDIC member. Your funds are protected up to $250,000. Additionally, the HSA Bank website uses encryption.

How Do I Contact HSA Bank?

We were impressed to find that HSA Bank offers 24/7 customer service. And there are a variety of ways to get in touch with a support representative. These include:

  • Phone (English): 800-357-6246 | 414-978-5294
  • Phone (Spanish): (866) 357-6232
  • Email: askus@hsabank.com

You can also start a live chat with a support person after you've logged into your member account. HSA Bank has an A- rating on the Better Business Bureau (BBB) and has been promptly answering and/or resolving complaints after they're filed.

Is It Worth It?

Yes, opening an HSA account can be a great decision. They provide a great tax-advantaged way to cover medical expenses when you have an HDHP. And you don’t lose any contributed funds if you don’t spend them.

Further, HSA Bank is one of the top HSA providers available today. Their fees are reasonable. And account holders can access a vast variety of DIY investment options through TD Ameritrade or get auto-investment service through Devenir.

If you’re paying too much in fees or would like more investing options, you may want to consider switching to HSA Bank. For step-by-step instructions on how to change your HSA provider, check out this guide.

HSA Bank FAQs

Let's answer a few of the most common questions we hear in regards to HSA Bank.

Is HSA Bank legit?

Yes, HSA Bank has a track record of 100+ years, has over 3 million members, and manages over $10 billion in assets.

Can you withdraw from HSA Bank?

Yes, you can withdraw your HSA funds to reimburse out-of-pocket expenses at any time (including cash withdrawals). However, if you decide to close your account, you'll be charged a $25 fee.

Can I open an HSA without an employer?

Yes, as long as you have a High Deductible Health Plan (HDHP), you'll most likely be eligible to open an HSA account with HSA Bank.

What is the daily limit for HSA Bank's debit card?

The daily spending limit is $5,000 at healthcare providers and $3,500 at non-healthcare-specific retailers such as grocery stores and department stores.

HSA Bank Features

Monthly Fee

$0

Paper Account Summary Fee

$1.50 (waived if customer chooses e-statements)

Account Closure Fee

$25

Account Minimum

$0

Minimum Balance For Investing

$1,000

Investment Options

  • TD Ameritrade Self-Directed Brokerage
  • Devenir Guided Portfolio

Guided Portfolio Annual Fee

0.30% (invoiced quarterly)


  • Only charged on first $50,000 in assets

Debit Card Issued

Yes

Debit Card Daily Spending Limits

  • Healthcare Merchants: $5,000
  • Non-Healthcare Merchants: $3,500

APY

  • Less than $5,000: 0.02%
  • $5,000.00 - $24,999.99: 0.10%
  • $25,000 or more: 0.20%

ATM Cash Reimbursements

Allowed

Customer Service Number

1-800-357-6246

Customer Service Hours

24/7 availability

Mobile App Availability

iOS and Android

Bill Pay

Yes

FDIC Certificate

18221

Promotions

None

HSA Bank Review
  • Commissions and Fees
  • Customer Service
  • Ease of Use
  • Tools and Resources
  • Investment Options
Overall
4.1

Summary

HSA Bank is a health accounts provider that offers HSAs, FSAs, and HRAs with low fees and flexible investing options. Read our full review!

Pros

  • Access to TD Ameritrade’s investing platform
  • Earn interest on non-invested cash
  • 24/7 customer service
  • Available in all 50 states

Cons

  • Monthly fee charged on accounts below $3,000
  • $1,000 minimum balance required to start investing
  • Try HSA Bank
Robert Farrington
Robert Farrington

Robert Farrington is America’s Millennial Money Expert® and America’s Student Loan Debt Expert™, and the founder of The College Investor, a personal finance site dedicated to helping millennials escape student loan debt to start investing and building wealth for the future. You can learn more about him on the About Page, or on his personal site RobertFarrington.com.

He regularly writes about investing, student loan debt, and general personal finance topics geared towards anyone wanting to earn more, get out of debt, and start building wealth for the future.

He has been quoted in major publications including the New York Times, Washington Post, Fox, ABC, NBC, and more. He is also a regular contributor to Forbes.

HSA Bank Review: An Experienced And Robust HSA Provider

Editor: Clint Proctor

Editorial Disclaimer: Opinions expressed here are author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, or other advertiser and have not been reviewed, approved or otherwise endorsed by any of these entities.
Comment Policy: We invite readers to respond with questions or comments. Comments may be held for moderation and are subject to approval. Comments are solely the opinions of their authors'. The responses in the comments below are not provided or commissioned by any advertiser. Responses have not been reviewed, approved or otherwise endorsed by any company. It is not anyone's responsibility to ensure all posts and/or questions are answered.
Subscribe
Connect with
I allow to create an account
When you login first time using a Social Login button, we collect your account public profile information shared by Social Login provider, based on your privacy settings. We also get your email address to automatically create an account for you in our website. Once your account is created, you'll be logged-in to this account.
DisagreeAgree
Notify of

I allow to create an account
When you login first time using a Social Login button, we collect your account public profile information shared by Social Login provider, based on your privacy settings. We also get your email address to automatically create an account for you in our website. Once your account is created, you'll be logged-in to this account.
DisagreeAgree

16 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

Primary Sidebar

Featured Bank Reviews

>  CIT Bank (recommended)
>  Discover  (recommended)
>  Barclays
>  Chime
>  Chase Bank
>  American Express Savings
>  Axos Bank
>  Quontic Bank

Checking Accounts

  • Best Free Checking Accounts
  • Best High-Yield Checking Accounts
  • Best College Student Checking Accounts
  • Best Starter Checking Accounts For Kids
  • Best Teen Checking Accounts
  • Best Checking Accounts for Military Members
  • Second-Chance Checking Accounts

Savings Accounts

  • Best High Yield Savings Accounts
  • Best Money Market Accounts
  • Best Student Savings Accounts

Certificates Of Deposit

  • Best No-Penalty CDs Rates
  • Best 12 Month CD Rates
  • Best Jumbo CD Rates
  • Best Overall Bank CD Rates

Business Banking

  • Best Business Checking Accounts
  • Best Business Savings Accounts

More On Banking

  • Best Bank Bonus Offers
  • Best Free Online Banks
  • Best Credit Unions
  • Best Banks For Students
  • Best Bank Accounts To Get Your Tax Refund Or Direct Deposit Early

Footer

Who We Are

The College Investor is an independent, advertising-supported financial media publisher, focusing on news, product reviews, and comparisons.

Connect

  • Contact Us
  • Advertise
  • Press & Media

About

  • About
  • Our Team
  • Podcast
  • Editorial Guidelines
  • How We Make Money
  • Archives

Social

Copyright © 2023 · The College Investor · Privacy Policy ·Terms of Service · DO NOT Sell My Personal Information

wpDiscuz