Which Are The Best HSA Accounts In The Market To Choose From? Know More!

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Which Are Best HSA Accounts In The Market To Choose From Know More!

HSA, which are otherwise known as Health Savings Accounts, refer to a strong tax-advantaged account where you may save or invest funds that you can use for any qualified healthcare expenses or to supplement your retirement.

In order to open the best HSA accounts, you or your family should be covered under a high-deductible health plan. If you are eligible, only then may you contribute up to $3,850 in the HS for coverage for only yourself as of 2023, while the families may contribute up to $7,750.

The best HSA account providers charge no fees and low to no premium deposit

requirements. These HSa providers also provide debit cards to pay for health expenses and have easy navigating online management tools.

There are many criteria that play a fundamental role in determining the best HSA accounts in the market. Some of those criterias are:

  • Investment and maintenance fees
  • Debit card access
  • Investment options
  • Mobile app availability
  • How easily can a user open the account
  • Minimum deposit requirements
  • Years in business
  • Account management tools

By examining all these factors, we came up with some of the best HSA account providers.

Stay with me as I list down the best HSA account providers for you to choose from.

Contents

List Of The Three Best HSA Providers

Here is the ultimate list of the best HSA providers as per the record of 2023.

  • Fidelity
  • Lively
  • HealthEquity

Let us now explore the details of the above-mentioned options to get further insights into what makes them the best in town.

Fidelity 

Fidelity allows users to invest their HSA funds into bonds, stocks, mutual funds, fractional shares, and ETFs. It even provides a bunch of fund alternatives that may only be available to clients that have a Fidelity HSA account, which includes the Fidelity Health Savings Index Fund and Fidelity Health Savings Fund.

Clients do not even need a minimum balance to open an account, and the HSA does not even charge any account fees on a monthly basis.

Pros

  • Investing the HSA into high-quality, low-cost Fidelity index funds, and mutual funds.
  • There is no need for a minimum deposit or fees for managing the account.
  • Users get a debit card that they may use to pay for the healthcare expenses that stand eligible.

Cons 

  • There are underlying fund expenses that may apply when a user invests their HSA money, and they may vary as well.
  • Some HSA investment options under Fidelity come with an expense ratio that might go as high as 0.96%.

Overview

“If you’re looking for an HSA provider who has been around for a while, you might be interested to know that Fidelity was founded in 1946. However, we chose Fidelity for our ranking not for their longevity, but because you can invest your HSA funds in many low-cost options aimed at long-term growth.”

HealthEquity

While the best HSA accounts providers have a personalized mobile app of their own, Healthequity works as one of the best mobile apps in this sector because of the broad area of operations that their app offers.

Not only does the app let the user track their HSA money and healthcare charges using the HealthEquity app, but you can also take a photo of any healthcare bill and submit it while claiming it while using your mobile phone.

Pros

  • Investing in lower cost Vanguard funds with no minimum threshold for investments.
  • Users get a debit card for healthcare expenses.
  • The underlying fund fees for the Vanguard fund options are an average of 0.15%.
  • The mobile app is user-friendly.

Cons

  • The annual fee for maintenance is $36; however, that may vary.
  • Needs an annual investment fee of 0.25%.

Overview

“While HealthEquity was founded in 2002, this provider now manages over $8.1 billion in custodial assets. With a focus on the future, HealthEquity has one of the most helpful healthcare apps in the business. With the HealthEquity app, you can keep track of your HSA balance and its growth and you can track your healthcare spending throughout the year. Best of all, you can take a picture of your medical bills and file a claim with a few clicks using your favorite mobile device.”

Lively

Lively does not charge a fee to get access or maintain an HSA account, which includes no hidden fees either. This, indeed, is a great option if you are looking for an account where unnecessary fees will consume most of your savings.

Pros 

  • There are no fees for their HSAs.
  • The whole process of opening an account and funding it is online.

Cons

  • Out of the two investment solutions that Lively offers is free, the other requires an annual fee of 0.50%.
  • The company is absolutely new and lacks years of experience.

Overview 

“Lively was founded in 2016, so this HSA provider hasn’t been around that long. However, we chose Lively as the best for no fees because their HSAs don’t come with any account opening fees, maintenance fees, fund transfer fees, debit card fees, or hidden fees of any kind. Lively also gives you a debit card connected to your account, which lets you pay for medical expenses over the phone or in an office, with the money being automatically debited from your HSA.”

How Can You Be Eligible For The Best HSA Accounts? 

How Can You Be Eligible For The Best HSA Accounts

HSA is, after all, a tax-advantaged account. One needs to have a high-deductible health insurance plan that has a minimum deductible of $1,500 for individual persons, while for families, it is $3,000 as of 2023.

The maximum balance in an account may not exceed $7,500 for a single person. The limit for families for the same is $15,000.

One may deduct the contributions as long as they maintain these limits on their tax returns, which will then grow tax-free in an investment account.

With the best HSA accounts, an individual may contribute up to $3,850, while the limit for families is $7,750 as of 2023 as long as they meet the criteria of the plan.

The Bottom Line

The best HSA accounts are needed in 2023. They save you in times of emergencies and protect you from any financial burden.

Opening a HSA will only secure your and your family’s future and safeguard you financially.

Thank you for staying with us for this long. I hope you enjoyed reading this article. Please feel free to comment with your feedback below!

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Upasana is a budding journalist who has a keen interest in writing. She considers writing as therapeutic and is most confident when she writes. She is passionate about music, movies and fashion. She writes in a way that connects with the audience in a personal level. She is optimistic, fun loving and opinionated.

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