This list will rank the best biggest HSA providers in America. People who are covered by the high-deductible health plans (HDHP) might have problems with paying medical expenses. The best way for them to save and collect the money for paying expensive treatments is to open a Health Saving Account.
Individuals or employers can make contributions to the HSA account. All money that you or your employer invest in the HSA, as well as the interest you are getting, are tax deductible. HSA owners also don’t pay taxes for withdrawals, but only if the money is used for paying medical treatments, diagnostics and medications.
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The health savings account can only be opened by (or for) an individual, who is covered by the HDHP. This type of account is not available to people on Medicare, or those who depend on their family members’ tax return. For more help with choosing the adequate health insurance policy, check out the Insider Monkey’s list of the 10 largest health insurance companies in America. Choosing the right HSA provider is not an easy task. You should opt for a respectable company that provides favorable conditions. This usually includes low fees and good investment options that make the HSA fund growing.
Before we rated HSA providers according to this criteria, we had to choose the 10 biggest HSA companies in the United States. The main criteria for determining this was a worth of assets these companies are managing. In order to choose what are the best biggest HSA providers in America, we used Investor’s Business Daily and 20 Something Finance. Since the amount of managed assets also largely contributes to the amount of interest you will be able to get, we have also taken this criterion into consideration and awarded each provider with a number of points that is reversely proportional to their ranking. In addition to the points awarded for the asset size, we have also taken into consideration the annual and maintenance fees.
Apart from the size and fees, our list is also offering a realistic look into other important parts of the HSA saving process. Although most providers offer similar investment options, which include mutual funds or self-brokerage, we have used this criterion for giving extra points and comparing companies that provide similar terms when it comes to fees and dividends. Since the Investors platform gave out awards to certain providers for their exceptionally good offer, we have used this data to add more points to the awarded companies. This way we have made our list of best biggest HSA providers in America more diverse and comprehensive.
10. Elements Financial
Score: 12 points;
Assets Under Management: $1.32 billion (3 points);
Monthly maintenance fee: $4 (2 points);
Investing and trade fees: $0 (6 points);
Investment options: interest dividend rate depends on account balance (1 point);
Apart from allowing you to save money for your family’s medical expenses, Elements Financial’s health saving account offers competitive rates, which can earn you a lot of extra funds in the long run. This company manages a small number of assets, comparing to the market giants of the health savings niche. Still, it offers HSA services with very affordable rates, which is why it easily found a place on our list.
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9. Health Savings Administrators
Score: 12 points;
Assets under management: $500 million (1 point);
Monthly maintenance fee: $3.75 (2 points);
Investing and trade fees: $0.625 per $1,000 on every three months (investing fee with no cap) (3 points);
Investment options: 115 mutual funds and 8 OBS financial model portfolios (4 points);
Awarded for investment options by Investors (2 points);
Health Saving Administrators is offering an interesting investment option for an average monthly fee and a capless charge of $0.625 per every $1,000 you invest. This company is running the HSA business since the establishment of medical savings accounts in 1997. Currently, they manage $500 million assets and offer investments in both mutual funds and OBS portfolios.
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8. Avidia Bank
Score: 15 points;
Assets under management: $90 million (0 points);
Monthly maintenance fee: $0 (8 points);
Investing and trade fees: $2.25 per month (4 points);
Investment options: 13 mutual funds (1 point);
Awarded for low fees by Investors (2 points);
Avidia Bank manages health savings accounts through its division called Avidia Health. They work in 50 states and manage almost $1 billion assets. The Investors website awarded Avidia Health for their low fees. For this HSA you won’t need to pay any monthly maintenance fees, and when it comes to investments and trade, you will only pay $2.25 per month. The company offers regular mutual funds investment opportunities.
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7. Select Account
Score: 15 points;
Assets under management: $1 billion (2 points);
Monthly maintenance fee: up to $4 per month (2 points);
Investing and trade fees: $18 per year (investing fee) and Schwab trading fees that go from $4.95 to $25 (3 points);
Investment options: 24 mutual funds, stocks, bonds and 2,500 funds via Charles Schwab (6 points);
Awarded for investment options by Investors (2 points);
Select Account, next in line on our list of best biggest HSA providers in America is offering a wide variety of investment options, including standard 24 mutual funds, various blue chip stocks, bonds and more than 2,500 additional funds available through the Charles Schwab Corporation. Such a huge investment offer requires diverse investing and trade fees. The regular investing fee is $18 on an annual basis, while the company also charges additional fees for trading through the Charles Schwab Corporation that can go from $4.95 to $25. Like most other HSA providers Select Account offers taxable income reduction, tax-free earnings (if used for covering medical expenses) and the distribution that is also not affected by taxation.
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6. Health Equity
Score: 16 points;
Assets Under Management: $5 billion (6 points);
Monthly maintenance fee: $3.95 (2 points);
Investing and trade fees: $0 (6 points);
Account opening: $10 (-1 point);
Investment options: 26 mutual funds (1 point);
Awarded for low fees by Investors (2 points);
Health Equity promotes their HSA program as both medical expenses savings and a retirement strategy. They charge a costly monthly fee, but both investing and trading are free of charge. Unlike most companies from our list Health Equity also charges $10 for the account opening. In spite of this, they have received an award from Investors website for low fees. When it comes to investment options, the company offers standard mutual funds choice to their clients.
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5. HSA Bank
Score: 18 points;
Assets Under Management: more than $5 billion (7 points);
Monthly maintenance fee: $2.5 (4 points);
Investing fee: $3 (3 points);
Investment options: mutual funds or TD Ameritrade (2 points);
Awarded for the best investment options by Investors (2 points);
HSA Bank is one of the best biggest HSA providers in America. They are offering several types of HSA accounts, the classic saving ones, and the ones that provide flexible spending. Health Savings accounts provided by the HSA Bank come with relatively low monthly fees and a standard investing fee, which provides access to mutual funds and other investing options through TD Ameritrade. If used as retirement savings, the HSA funds can be collected after the owner turns 65, without paying any special fees or penalties. Still, the income tax on these funds will be charged if they aren’t used for paying medical expenses.
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4. Optum Bank
Score: 19 points;
Assets under management: $7 billion (9 points);
Monthly maintenance fee: $2.75 (4 points);
Investing and trade fees: 0.03% of invested balance (3 points);
Investment options: 26 mutual funds (1 point);
Awarded for low fees by Investors (2 points);
Up next on our list of best biggest HSA providers in America is Optum Bank that offers a standard HSA package that provides tax benefits to both individuals and employers. They manage the large portfolio of assets worth more than $7 billion. Monthly maintenance fees are close to the lists’ average and investing, and trading is not charged according to the standard fee model, but with the 0.03% of the invested balance. This system has earned Optum Bank a ‘low fees’ reward from the Investors platform. When it comes to investment opportunities, they offer a standard selection of mutual funds.
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3. Lake Michigan Credit Union
Score: 20 points;
Assets Under Management: $3.6 billion (5 points);
Monthly maintenance fees: $0 (8 points);
Investing and trade fees: $0 (6 points);
Investment options: from 0.5% to 1% of dividend rate (1 point);
We are continuing our list of best biggest HSA providers in America with Lake Michigan Credit Union’s HSA that offer is a great option for individuals and employers who want to save money on benefits. When it comes to investing the account holders can earn dividend rates that range from 0.5% to 1%. The first figure is the base rate and the annual percentage yield for the health savings accounts with less than $5,000, while the second one is applied to the accounts with more of $5,000 in funds. The LMCU also provides the dedicated debit card and an unlimited number of checks. You can also access your account through their website and a specialized mobile app.
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2. Alliant Credit Union
Score: 20 points;
Assets Under Management: $8.2 billion (10 points);
Monthly maintenance fees: $0 (8 points);
Investing and trade fees: $5.95/month (1 point);
Investment options: 0.65% dividend rate (from 125+ mutual funds, self-brokerage) (3 points);
In the Alliant Credit Union, every account with a balance higher than $100, earns a 0.65% dividend rate and annual percentage yield. One of the best benefits of the ACU offer is that standard monthly maintenance fees are not charged. The investing fee, on the other hand, is far from being affordable, and it is paid on a monthly basis. Apart from that, the ACU charges fees for issuing a Paper Statement ($1) and for having a Non-Sufficient Fund Items ($25). The company provides its users with a VISA debit card and online and mobile banking options, free of charge.
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1. Fidelity Investments
Score: 23 points;
Assets under management: $2.07 billion (4 points);
Monthly maintenance fee: $0 (8 points);
Investing and trade fees: $4.95 per trade (1 point);
Investment options: 5,000+ investment options (4 points);
Awarded for low fees, investment options and easy account access by Investors (6 points);
On top of our list of best biggest HSA providers in America manages around $2 billion assets. Although there are much bigger companies on the list, Fidelity Investments offers the most competitive HSA package with incredibly low fees and more than 5,000 different investment options. They have received Investors’ awards in three separate categories. The benefits that this company provides range from a robust trading platform that comes with access to the no-transaction-fee funds and the FDIC insurance option for every contribution made by employers or individuals.
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