Best Health Savings Account (HSA) Providers

By Triston Martin Updated on Aug 04, 2022
The health savings account is more advantageous in terms of taxation than a 401(k), standard or Roth individual retirement account, or 529 college savings plan. There are various ways to utilize this account, from a checking account to an investment account to a mix of the two, depending on your needs

Individuals and families should explore new methods to save money as healthcare costs continue to rise across the country. Tax-advantaged health savings accounts allow you to do just that, but you must have a health insurance plan that qualifies. Even if you're eligible for a retirement plan, you'll be subject to annual contribution caps, which are usually rather generous. As of 2022, individuals and families can contribute up to $3,650 and $7,300, respectively.

What Is a Health Savings Account?

Using a health savings account, individuals may set money aside tax-free to cover certain medical bills. High-deductible health plans or plans with at least $1,400 for individuals or $2800 for families in 2022 are required to utilize an HSA. Individual plans have an annual maximum out-of-pocket expense limit of $7,050; family plans have an annual maximum out-of-pocket expense limit of $14,100.

In 2022, individuals can make contributions of up to $3,650, and families can make contributions of up to $7,300 to a health savings account. Pre-tax saving allows you to deduct the full amount of your contributions from your taxable income. Tax-free money grows over time, and you don't have to pay taxes on distributions if you use the money for qualifying healthcare expenditures.

How Is HSA Different From FSA?

Because HSA funds belong to the account owner, they can be carried over yearly without expiration. Because of this, health savings accounts are distinct from flexible spending accounts. Regarding medical and dental expenditures, flexible spending accounts are savings accounts that employees may contribute a percentage of their wages.

Additionally, FSA payments are tax-deductible, reducing the user's taxable income. A worker's FSA balance will be depleted if they don't spend the funds before the plan year's end unless their employer grants them a grace period of up to two and a half months.

Are Health Savings Accounts Worth It?

If you have health insurance with a high deductible and are eligible for a health savings account, you should open one immediately. To save money on taxes, even if you do not invest your HSA funds and merely contribute money to your account when needed, you should consider funneling contributions into an HSA before paying medical expenditures.

In addition, after you reach the age of 65, you can take money out of your HSA penalty-free without having to use the funds for medical expenditures. Because of this, an HSA account can serve as a good fallback for your retirement savings if you don't need to use the funds in it for medical bills.

The Best Health Savings Account (HSA) Providers of 2022

Health Equity

Health Equity was established in 2002 and acquired Health Savings Administrators and Further in 2021, both of which are HSA providers. Health savings accounts will be transferred to the Health Equity platform by the company's first quarter of the fiscal year 2023. All new versions will be established and handled by Health Equity as of January 28, 2022. In the meantime, though, it is a separate company with its management team.

We decided to go with Health Equity since not only does it continue to provide low-cost Vanguard and Dimensional Funds alternatives with its HSAs, but there is no minimum account balance for your funds to be invested. You may utilize a simple mobile application to keep track of spending and balances and make claims.


This HSA provider was only active for a short time, created in 2016 by Lively. Nevertheless, we selected Lively as the top provider of HSAs with no fees due to their HSAs' lack of account establishment, maintenance, fund transfer, debit card, or other hidden costs. If you have a Health Savings Account (HSA), Lively also provides an HSA debit card that may be used to pay medical costs by phone or at an office.

A smartphone app is available from Lively to help you keep track of your HSA savings on the go. You may also use the app to keep track of your health insurance deductible and manage your healthcare expenses. Additionally, Lively provides paperless account rollovers and transfers of cash between trustees.

The HSA Authority

Because they provide so many options for online co-management of an HSA, The HSA Authority was our top pick for families. Online bill pay, text banking, mobile bill payments, and electronic statements are some web-based services you can access through their common interface.

Although the HSA Authority was established in 2004, it's crucial to note that this HSA provider is a part of Old National Bank, which has a history dating back to 1834. The HSA Authority does not need a minimum balance to start an account. The HSA Authority's investing partner, Devein, allows you to invest in mutual funds through the HSA.