In the dynamic realm of personal finance, Health Savings Accounts (HSAs) have become a cornerstone for savvy savers, offering a blend of medical expense management and investment potential. As we navigate through 2025, several HSA providers stand out, each with its own unique set of features, benefits, and quirks. Let’s take a deep dive into some of the top contenders.
Lively: A Breath of Fresh Air
Lively presents itself as an enticing option, especially for individuals seeking a straightforward and cost – effective HSA. One of its most appealing features is the offer of a free HSA account for individuals, with no hidden fees lurking in the shadows. The account is FDIC – insured, providing that much – needed peace of mind when it comes to safeguarding your funds. Embracing the digital age, Lively operates 100% paperless, making it convenient and eco – friendly.
For investors, Lively has a special treat. With a unique promo, you can invest for free. However, there’s a catch. To access the investment features, you must maintain an account at both Charles Schwab and Lively. While this isn’t a deal – breaker, it does add an extra layer of administrative work. Additionally, if you want to avoid a $24 annual fee, you’ll need to keep at least $3,000 in cash in your Lively account. But here’s a sweet deal for College Investor readers: sign up through the designated site, and that pesky annual fee is waived permanently.
The partnership with Charles Schwab opens the door to a vast universe of investment options. From individual stocks and bonds to CDs, ETFs, and over 13,000 mutual funds, the choices are abundant. Plus, enjoy the perk of $0 commissions for online stock, ETF, and option trades at Schwab. If you’re a fan of commission – free ETFs with low expense ratios, Lively could be your ideal match.
Fidelity HSA®: Flexibility at Its Finest
Fidelity’s HSA® is a brokerage account that prides itself on flexibility. Say goodbye to monthly account fees and minimum balance requirements just to open an account. This accessibility makes it a great option for those just dipping their toes into the world of HSAs.
When it comes to investing, Fidelity shines bright. It offers a wide array of investment choices, including stocks, bonds, mutual funds, and ETFs, all commission – free. The ability to invest in fractional shares is an added bonus, allowing you to build a diversified portfolio even with a small amount of capital.
Managing your HSA funds is a breeze with Fidelity. You can easily add funds by transferring from a bank account or using mobile check deposit. And when it’s time to pay for qualifying medical expenses, the Fidelity HSA debit card and BillPay services make the process seamless.
HSA Bank: A Blend of Tradition and Innovation
HSA Bank comes equipped with all the modern conveniences you’d expect, such as online access and a mobile app. Paying for medical expenses is a simple task, with options to use a check, debit card, or bill – pay system.
For the investment – inclined, HSA Bank offers opportunities through TD Ameritrade Self – Directed Brokerage or DEVENIR Self – Directed Mutual Fund Program. The bank has eliminated monthly maintenance fees for individual HSA accounts, which is a huge plus. However, if you opt for the Devenir Guided Portfolio Self – Directed Investment Program, there’s an annual fee of 0.30% of assets under management, invoiced quarterly with a minimum fee of $1.50 per quarter (only assessed on the first $50,000 in your investment account).
Investing with HSA Bank requires a minimum of $1,000 in your cash account, and only funds above this amount can be transferred to your investment account.
Optum Bank: The Corporate Choice
Optum Bank, a part of the UnitedHealth Group’s technology services division, often serves as the default HSA for employees of major companies. With a monthly fee of $2.75 (usually covered by the employer) and no minimum balance requirement, it’s an accessible option for many. It offers all the standard features like a debit card, checking, online banking, and a mobile app.
As an FDIC member, managing over three million accounts and $9 billion in assets, Optum Bank has a solid foundation. It provides a plethora of investment options, but you’ll need to meet a $2,000 investment threshold first. Once you do, rebalancing your portfolio and moving funds between investments and your main account is straightforward.
However, Optum Bank has its drawbacks. You’re locked into its platform and fund choices, which may not always be the most competitive in the market. And if you leave your employer, be prepared for those monthly fees to start coming out of your account, as Optum isn’t the most cost – effective option on its own.
In the hunt for the perfect HSA provider in 2025, it all boils down to your individual needs, investment goals, and tolerance for administrative requirements. Whether you prioritize free accounts, investment flexibility, or corporate – friendly features, there’s an HSA provider out there ready to help you make the most of your health savings.
