HSA - Which one do you recommend?

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Andydc69
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HSA - Which one do you recommend?

Post by Andydc69 »

Hi bogleheads,

Which company do you recommend to open an HSA? Thank you.
pobox2001
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Re: HSA - Which one do you recommend?

Post by pobox2001 »

Fidelity.
Arnold Ziffel
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Re: HSA - Which one do you recommend?

Post by Arnold Ziffel »

CIT bank!
HYSA
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NYHawkeye
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Re: HSA - Which one do you recommend?

Post by NYHawkeye »

Previously was with HSA Bank through work - was not a great experience.

Moved everything to Fidelity which has been very smooth and they have been easy to work with.
terran
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Re: HSA - Which one do you recommend?

Post by terran »

pobox2001 wrote: Wed Jan 29, 2025 6:18 amFidelity.
This is all that needs to be said.
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life in slices
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Re: HSA - Which one do you recommend?

Post by life in slices »

+1 on Fidelity - opened mine about 3-ish years ago and transfer my HSA deduction from HealthEquity over to my Fidelity HSA once a quarter - no issues

My wife's catchup HSA contribution are at Fidelity as well
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Feldman
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Re: HSA - Which one do you recommend?

Post by Feldman »

Arnold Ziffel wrote: Wed Jan 29, 2025 6:24 am CIT bank!
HYSA
Thread is about Health Savings Accounts (HSAs), not High Yield Savings Accounts (HYSAs).
Dufus
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Re: HSA - Which one do you recommend?

Post by Dufus »

NOT Optum.
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mhc
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Re: HSA - Which one do you recommend?

Post by mhc »

Fidelity

No fees.
Can invest 100%.
Has worked well for me. I have never made a withdrawal. I don't know how well that works. Also don't know how well the debit card works if you want to go that route.
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GoldStar
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Re: HSA - Which one do you recommend?

Post by GoldStar »

Fidelity
Many other places charge fees or limit options. Several other well known brokerages (E.g. Vanguard) don't bothrr to offer this account type to their customers. Fidelity was the only and best option I found.
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retired@50
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Re: HSA - Which one do you recommend?

Post by retired@50 »

Andydc69 wrote: Wed Jan 29, 2025 6:18 am Hi bogleheads,

Which company do you recommend to open an HSA? Thank you.
Fidelity.

Regards,
"All of us would be better investors if we just made fewer decisions." - Daniel Kahneman
Rob't
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Re: HSA - Which one do you recommend?

Post by Rob't »

I’m not a Fidelity fan (all my other brokerage accounts are at Vanguard), but definitely agree with Fidelity for HSA.
I have done withdrawals online and they are easy and funds transfer to personal checking fast.
MedEngineer
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Re: HSA - Which one do you recommend?

Post by MedEngineer »

Dufus wrote: Wed Jan 29, 2025 7:28 amNOT Optum.
Agree, NOT Optum. Opened my spouse HSA at Fidelity.
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tuningfork
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Re: HSA - Which one do you recommend?

Post by tuningfork »

I went through several different HSA providers through my work. Eventually ended up at Fidelity, best of all worlds for HSAs.
cowbman
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Re: HSA - Which one do you recommend?

Post by cowbman »

Fidelity is loved by many BHers due to 0 fees and 0 EE mutual funds, and no fee ETFs. As long as you're not in California or New Jersey, it's hard to find a better option.
vanuber
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Re: HSA - Which one do you recommend?

Post by vanuber »

I use Inspira, carry over from a previous employer plan. The love for Fidelity has me looking at fees...

Inspira investment asset based fee:
$0.01 - $400.00 balance = 0.00%
$400.01 - $33,733.33 balance = 0.03%
Over $33,733.3 balance = 0.00%

Fidelity advisory fee:
The Fidelity Go® HSA does not charge advisory fees on balances under $25,000, but there is a 0.35% advisory fee per year for balances of $25,000 and above.

Inspira wins on high balances. The 0.35% from Fidelity seems quite high in comparison. I imagine most Bogleheads aspire to use HSAs as long-term, triple-tax advantaged investments.

Am I missing something here? I can't imagine BH love for a product steeped in fees.
AlwaysLearningMore
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Re: HSA - Which one do you recommend?

Post by AlwaysLearningMore »

Have had three, and Fidelity has by far been the best for us.

Which ever you choose, make sure you review all the features, expenses, etc.

Good luck.
Retirement is best when you have a lot to live on, and a lot to live for. * None of what I post is investment advice.* | FIRE'd July 2023
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life in slices
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Re: HSA - Which one do you recommend?

Post by life in slices »

vanuber wrote: Wed Jan 29, 2025 7:44 pm I use Inspira, carry over from a previous employer plan. The love for Fidelity has me looking at fees...

Inspira investment asset based fee:
$0.01 - $400.00 balance = 0.00%
$400.01 - $33,733.33 balance = 0.03%
Over $33,733.3 balance = 0.00%

Fidelity advisory fee:
The Fidelity Go® HSA does not charge advisory fees on balances under $25,000, but there is a 0.35% advisory fee per year for balances of $25,000 and above.

Inspira wins on high balances. The 0.35% from Fidelity seems quite high in comparison. I imagine most Bogleheads aspire to use HSAs as long-term, triple-tax advantaged investments.

Am I missing something here? I can't imagine BH love for a product steeped in fees.
I don't use Fidelity advisory services nor the Fidelity Go HSA - rather I use their standard self-directed HSA which has 0% fees
Last edited by life in slices on Wed Jan 29, 2025 8:20 pm, edited 1 time in total.
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dogagility
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Re: HSA - Which one do you recommend?

Post by dogagility »

Fidelity. For HSA and many other financial services.
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rene
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Re: HSA - Which one do you recommend?

Post by rene »

vanuber wrote: Wed Jan 29, 2025 7:44 pm I use Inspira, carry over from a previous employer plan. The love for Fidelity has me looking at fees...

Inspira investment asset based fee:
$0.01 - $400.00 balance = 0.00%
$400.01 - $33,733.33 balance = 0.03%
Over $33,733.3 balance = 0.00%

Fidelity advisory fee:
The Fidelity Go® HSA does not charge advisory fees on balances under $25,000, but there is a 0.35% advisory fee per year for balances of $25,000 and above.

Inspira wins on high balances. The 0.35% from Fidelity seems quite high in comparison. I imagine most Bogleheads aspire to use HSAs as long-term, triple-tax advantaged investments.

Am I missing something here? I can't imagine BH love for a product steeped in fees.
You’re doing it wrong. Just invest in your favorite ETF or park $$ in the core fund. I am actively moving my paycheck deductions from Inspira to Fidelity a few times a year. Inspira is better than HSA Bank but still miles below Fidelity.
Atretes1
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Re: HSA - Which one do you recommend?

Post by Atretes1 »

Dufus wrote: Wed Jan 29, 2025 7:28 amNOT Optum.
MedEngineer wrote: Wed Jan 29, 2025 10:44 am
Dufus wrote: Wed Jan 29, 2025 7:28 amNOT Optum.
Agree, NOT Optum. Opened my spouse HSA at Fidelity.

Why not Optum? My work goes through them? They do have a .003% investment fee.
Last edited by Atretes1 on Thu Jan 30, 2025 2:17 am, edited 1 time in total.
cacophony
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Re: HSA - Which one do you recommend?

Post by cacophony »

cowbman wrote: Wed Jan 29, 2025 5:11 pm Fidelity is loved by many BHers due to 0 fees and 0 EE mutual funds, and no fee ETFs. As long as you're not in California or New Jersey, it's hard to find a better option.
Why is it not the best option for CA or NJ as well?
boomer_techie
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Re: HSA - Which one do you recommend?

Post by boomer_techie »

cacophony wrote: Thu Jan 30, 2025 1:20 am
cowbman wrote: Wed Jan 29, 2025 5:11 pm Fidelity is loved by many BHers due to 0 fees and 0 EE mutual funds, and no fee ETFs. As long as you're not in California or New Jersey, it's hard to find a better option.
Why is it not the best option for CA or NJ as well?
California (and I presume New Jersey) does not recognize an HSA as a tax advantaged account. Thus an HSA is treated by the state as just another taxable investment account. The default/sweep fund options for cash in Fidelity HSA's all pay state taxable "interest". You can keep cash in a tax exempt fund, but it will be hard to fully avoid taxable income.
Dufus
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Re: HSA - Which one do you recommend?

Post by Dufus »

Atretes1 wrote: Thu Jan 30, 2025 1:12 am
Dufus wrote: Wed Jan 29, 2025 7:28 amNOT Optum.
MedEngineer wrote: Wed Jan 29, 2025 10:44 am

Agree, NOT Optum. Opened my spouse HSA at Fidelity.

Why not Optum? My work goes through them? They do have a .003% investment fee.
They may have changed, but last time we were with Optum in addition to fees, you could not invest your whole balance.
cacophony
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Re: HSA - Which one do you recommend?

Post by cacophony »

boomer_techie wrote: Thu Jan 30, 2025 3:08 am
cacophony wrote: Thu Jan 30, 2025 1:20 am

Why is it not the best option for CA or NJ as well?
California (and I presume New Jersey) does not recognize an HSA as a tax advantaged account. Thus an HSA is treated by the state as just another taxable investment account. The default/sweep fund options for cash in Fidelity HSA's all pay state taxable "interest". You can keep cash in a tax exempt fund, but it will be hard to fully avoid taxable income.
Fidelity still seems like the superior option. Many HSA providers have very limited fund choices that do not include any treasury funds, so you're paying a little state tax regardless. As long as Fidelity makes it easy to track the interest, reporting the interest on taxes is not difficult.
Atretes1
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Re: HSA - Which one do you recommend?

Post by Atretes1 »

Dufus wrote: Thu Jan 30, 2025 6:46 am
Atretes1 wrote: Thu Jan 30, 2025 1:12 am




Why not Optum? My work goes through them? They do have a .003% investment fee.
They may have changed, but last time we were with Optum in addition to fees, you could not invest your whole balance.
Yeah like 2k cash and I need to keep 3k cash in it to also avoid a $2 monthly fee. I have no choice because my work uses it. Maybe I can transfer out the invested portion and do that once a year. Its a $20 fee for outbound transfers also.
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MillennialFinance19
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Re: HSA - Which one do you recommend?

Post by MillennialFinance19 »

HSA Bank = trash
Fidelity = treasure
Target: FI at 43, Retire at 52. VOO/VTI and chill...
kd2008
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Re: HSA - Which one do you recommend?

Post by kd2008 »

Employer health insurance is through UHC. We earn $2000 in rewards for completing wellness activities. These "earnings" get transferred to HSA of our choice.

In 2025, they started using plaid for verification but it doesn't work with Fidelity.

So I ended up signing up for a new account with HSA bank. Loved how easy it was to set it up all online.

Will do a 60-day rollover (indirect) to Fidelity.

Not interested in investing in HSA Bank. But didn't seem bad in fees for their investment of platform.

A few folks quibble over minor irritants about HSA bank. They are not bothersome to me. YMMV.

Fidelity is definitely the best. No doubt there.
mc2
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Re: HSA - Which one do you recommend?

Post by mc2 »

Left HSA bank for Fidelity. No fees, better investment options. I've also migrated a few accounts to Fidelity and was able to score a $200 bonus and a 2% cash back credit card.
User interface online and for iphone is easy and efficient
kinless
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Re: HSA - Which one do you recommend?

Post by kinless »

boomer_techie wrote: Thu Jan 30, 2025 3:08 am California (and I presume New Jersey) does not recognize an HSA as a tax advantaged account. Thus an HSA is treated by the state as just another taxable investment account. The default/sweep fund options for cash in Fidelity HSA's all pay state taxable "interest". You can keep cash in a tax exempt fund, but it will be hard to fully avoid taxable income.
As a CA resident I keep 100% of my Fidelity HSA in FUAMX (Treasury bond index fund) which is tax-exempt at the state level. With a return of around 4.5% it may not be the most lucrative in terms of growth, but avoiding the tax implications on my returns is worth it to me. When I eventually move out of state maybe I'll be more aggressive with it.

Also vote for Fidelity. I used Lively for a few years before that, but their investment options are no longer completely fee free. Still spending that account down.
furiouschads
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Re: HSA - Which one do you recommend?

Post by furiouschads »

Fidelity Cash Management Account.

I keep my balance in FDLXX (Fidelity® Treasury Only Money Market Fund) since I pay MD state income tax.
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Da5id
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Re: HSA - Which one do you recommend?

Post by Da5id »

I like Fidelity. But I can't say how well it works if you actually spend money as I'm just using it for a savings vehicle for now. I deposit the max every year, buy stock index ETFs, and don't withdraw.
OldGoat
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Re: HSA - Which one do you recommend?

Post by OldGoat »

I use Fidelity, and have my HSA in 100% FRZOX.
AnEngineer
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Re: HSA - Which one do you recommend?

Post by AnEngineer »

kd2008 wrote: Thu Jan 30, 2025 7:56 pm Employer health insurance is through UHC. We earn $2000 in rewards for completing wellness activities. These "earnings" get transferred to HSA of our choice.
Does this bypass HSA contribution limits?
That your facts or argument are wrong does not necessarily mean I disagree with your conclusion
kd2008
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Re: HSA - Which one do you recommend?

Post by kd2008 »

AnEngineer wrote: Fri Jan 31, 2025 6:54 am
kd2008 wrote: Thu Jan 30, 2025 7:56 pm Employer health insurance is through UHC. We earn $2000 in rewards for completing wellness activities. These "earnings" get transferred to HSA of our choice.
Does this bypass HSA contribution limits?
No, it does not.
notinuse
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Re: HSA - Which one do you recommend?

Post by notinuse »

I recommend Fidelity. No fees and you have access to all of their investment options. You are able to invest the entire amount in the HSA. Transfers out of the HSA are quick. They also have a debit card to use with the HSA if you prefer, but I pay with a cash back credit card and withdraw funds in blocks tracked with a spending file. I am mostly invested in FZROX, with a small amount in the settlement fund for spending as needed. My HSA investments are entirely self-directed.

I can't think of any negatives for the Fidelity HSA.
MedEngineer
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Re: HSA - Which one do you recommend?

Post by MedEngineer »

Atretes1 wrote: Thu Jan 30, 2025 5:52 pm
Dufus wrote: Thu Jan 30, 2025 6:46 am

They may have changed, but last time we were with Optum in addition to fees, you could not invest your whole balance.
Yeah like 2k cash and I need to keep 3k cash in it to also avoid a $2 monthly fee. I have no choice because my work uses it. Maybe I can transfer out the invested portion and do that once a year. Its a $20 fee for outbound transfers also.
I also have Optum, not happy about it but I don't get to chose. $24/year in fees and stuck in a treasury fund (I'm in NJ) :( At some point I'll have to weigh the cost/pain of transferring to a Fidelity HSA. If I understand the rules I only have about 2.5 more years where I can contribute if I take medicare @ 65, so maybe I tough it out until then.
AnEngineer
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Re: HSA - Which one do you recommend?

Post by AnEngineer »

kd2008 wrote: Fri Jan 31, 2025 6:58 am
AnEngineer wrote: Fri Jan 31, 2025 6:54 am

Does this bypass HSA contribution limits?
No, it does not.
Then why not take the money as cash and contribute yourself where you want?
That your facts or argument are wrong does not necessarily mean I disagree with your conclusion
kd2008
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Re: HSA - Which one do you recommend?

Post by kd2008 »

AnEngineer wrote: Fri Jan 31, 2025 9:01 am
kd2008 wrote: Fri Jan 31, 2025 6:58 am

No, it does not.
Then why not take the money as cash and contribute yourself where you want?
Because the health plan allows the rewards to be sent only to an HSA.
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sycamore
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Re: HSA - Which one do you recommend?

Post by sycamore »

I had an HSA with three custodians: Aetna (employer-chosen), HealthSavings Administrators, which I transferred out of to Fidelity. HealthSavings Administrators later closed down and merged into HealthEquity.

Fidelity is my recommendation. No fees, all the investment choices I could want, Fidelity has a good website & app, reliable tax document reporting.
jwc1754
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Re: HSA - Which one do you recommend?

Post by jwc1754 »

I recommend Fidelity! Recently moved everything from HSABank to Fidelity. Great investment options for a long term.
trees
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Re: HSA - Which one do you recommend?

Post by trees »

Another fidelity vote. The only downside (which may be an upside for some) is they don’t require any documentation for qualified withdrawals, so you don’t have any paperwork backup and it’s more critical that you maintain your own documentation in an easy to find manner. I liked that health equity saved the receipts I was withdrawing money for so I had a backup documentation location (but didn’t like their fees to invest, so only used them for short term stop for employer deposited HSA money).
BabaWawa
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Re: HSA - Which one do you recommend?

Post by BabaWawa »

Another vote for Fidelity HSA. I transferred my taxable, IRA and Roth accounts to another brokerage, but kept the HSA and Charitable accounts at Fidelity as those products are hard to beat anywhere else.
AnEngineer
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Re: HSA - Which one do you recommend?

Post by AnEngineer »

trees wrote: Sun Feb 02, 2025 12:46 pm Another fidelity vote. The only downside (which may be an upside for some) is they don’t require any documentation for qualified withdrawals, so you don’t have any paperwork backup and it’s more critical that you maintain your own documentation in an easy to find manner.
I this as a major advantage. I don't want to have to satisfy my custodian's expectations for documentation when their view ultimately doesn't count for anything. I don't know if having them store your records satisfies the legal requirements that you keep records. I also wouldn't want to be exposed to the risk of them losing the data. I can that if it's implemented as an option (which I've heard Fidelity does have) that it can be convenient, but I don't want someone acting as a gatekeeper to money I'm entitled to (e.g. for an indirect rollover or if I just don't want to give them my medical records for privacy or security concerns).
That your facts or argument are wrong does not necessarily mean I disagree with your conclusion
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anon_investor
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Re: HSA - Which one do you recommend?

Post by anon_investor »

pobox2001 wrote: Wed Jan 29, 2025 6:18 amFidelity.
+1. Fidelity has the best HSA hands down.
lessismore22
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Re: HSA - Which one do you recommend?

Post by lessismore22 »

Another vote for FIDELITY.
TroyS
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Re: HSA - Which one do you recommend?

Post by TroyS »

+1 for Fidelity
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