Bank of America Health Savings Accounts: What's Available and How They Work

Bank of America does offer Health Savings Accounts, but only as custodial accounts paired with a high-deductible health plan from an outside provider

Bank of America does not issue or administer HSAs directly. Instead, the bank acts as a custodian—meaning it holds the money and processes transactions, but you must open the HSA through a health insurance provider or a third-party HSA administrator. Bank of America then manages the account once it exists. This is an important distinction because it means you cannot walk into a Bank of America branch and open an HSA; you open it elsewhere first, then designate Bank of America as the custodian.

The HSA itself must be tied to a high-deductible health plan (HDHP). Bank of America does not sell health insurance, so you will need to obtain an HDHP from your employer, the health insurance marketplace, or a private insurer. Once you have that plan, you can then set up an HSA with Bank of America as the custodian if your health plan administrator allows it.

Key Takeaways

Bank of America serves as a custodian for HSAs but does not create or issue them—you must open the account through your health insurance provider or an HSA administrator first.
You can only open an HSA if you are enrolled in a high-deductible health plan, which Bank of America does not sell.
Bank of America HSA custodial accounts come with a debit card, online access, and the ability to invest unused funds in mutual funds or money market accounts.
Not all health insurance plans allow Bank of America as a custodian, so you will need to check with your plan administrator before opening the account.
Bank of America charges annual maintenance fees for HSA accounts, which vary depending on the account type and investment options you choose.

How to set up a Bank of America HSA custodial account

The first step is to confirm you have a high-deductible health plan. Your insurance documents or the Summary of Benefits and Coverage (SBC) will state whether your plan qualifies as an HDHP. For 2024, an HDHP has a minimum deductible of $1,600 for individual coverage or $3,200 for family coverage, though these amounts change annually.

Next, contact your health insurance provider or plan administrator and ask whether Bank of America is an approved HSA custodian. Not all plans allow it. If Bank of America is approved, your plan administrator can provide you with the enrollment process or a link to Bank of America's HSA setup page. You will need your plan information, Social Security number, and initial funding amount ready. Bank of America typically requires a minimum opening deposit, though this amount varies.

Once your account is open, you can fund it through payroll deduction (if your employer offers it), direct transfer from another bank account, or by mailing a check. Contributions are tax-deductible, and the money grows tax-free as long as you use it for may have access to medical expenses.

What Bank of America HSA accounts include

Bank of America HSA custodial accounts come with a debit card that works like a regular bank card but is restricted to may have access to medical expenses. You can use it at pharmacies, doctors' offices, hospitals, and other healthcare providers. The card is linked to your HSA balance, so you cannot overspend.

The account includes online banking access through Bank of America's website or mobile app, where you can view your balance, track spending, and read statements. You can also set up automatic transfers to fund the account if you receive regular paychecks.

If you have money left over after paying current medical expenses, Bank of America allows you to invest those funds in mutual funds or money market accounts. This is different from a regular savings account—your HSA balance can grow through investment returns, and that growth is also tax-free as long as the money is used for may have access to medical expenses eventually.

Fees and costs associated with Bank of America HSAs

Bank of America charges an annual maintenance fee for HSA custodial accounts. The exact amount depends on whether you choose to invest your HSA funds or keep them in a cash account. Accounts with no investments typically have lower fees than those with mutual fund investments. As of 2024, maintenance fees range, but you should confirm the current fee schedule directly with Bank of America because these amounts change.

If you invest your HSA funds through Bank of America, you may also pay investment fees or expense ratios on the mutual funds themselves. These are separate from the custodial maintenance fee and vary depending on which funds you choose.

There are no fees for using the debit card at the point of sale, but some transactions—such as ATM withdrawals or balance inquiries at non-Bank of America ATMs—may incur charges depending on your account type.

may have access to medical expenses you can pay from your HSA

The IRS maintains a strict list of what counts as a may have access to medical expense. Common expenses include copayments, coinsurance, deductibles, prescription medications, dental work, vision care, and mental health treatment. You can also use HSA funds to pay for medical equipment like wheelchairs, crutches, or blood pressure monitors.

Expenses that do not may have access to include cosmetic procedures, over-the-counter medications (with some exceptions for items like pain relievers if prescribed by a doctor), gym memberships, and general wellness products. If you use HSA funds for a non-may have access to expense, you owe income tax on that amount plus a 20% penalty.

Bank of America provides a list of may have access to expenses in your account documentation, and the IRS publishes a informational guide on its website. When in doubt, keep receipts and check the IRS rules before withdrawing money for an expense you are unsure about.

Alternatives if Bank of America is not an option for you

If your health plan does not allow Bank of America as a custodian, or if you prefer a different provider, other banks and financial institutions offer HSA custodial services. Fidelity, Lively, HealthEquity, and Optum Bank are common alternatives. Some are free or low-cost, while others charge annual fees similar to Bank of America's.

You can also open an HSA through your health insurance provider directly. Many insurers offer their own HSA products or partner with third-party administrators. The trade-off is that you may have fewer investment options or higher fees, but the setup is often simpler because everything is coordinated through your plan.

If you change jobs or switch health plans, you can roll your Bank of America HSA into another custodian's account without penalty. This gives you flexibility if you later want to move to a provider with lower fees or better investment options.

Frequently Asked Questions

Can I use my Bank of America HSA debit card everywhere?

No. The debit card is restricted to may have access to medical expenses and will decline at merchants that do not fall into that category. You cannot use it at grocery stores, gas stations, or general retailers. If you need to pay for a may have access to medical expense that the card declines, you can request reimbursement from your HSA by submitting a receipt and claim form to Bank of America.

What happens to my Bank of America HSA if I leave my job?

Your HSA remains yours and does not disappear. You own the account, not your employer. You can continue to use it to pay medical expenses, and you can keep it with Bank of America or roll it to another custodian. If you enroll in a new high-deductible health plan with your new employer, you can continue contributing to the same HSA.

Can I withdraw money from my Bank of America HSA for non-medical expenses?

Yes, but you will owe income tax on the withdrawal plus a 20% penalty if you are under age 65. After age 65, you can withdraw money for any reason without the penalty, though you still owe income tax on non-medical withdrawals. Keep receipts for all medical expenses to prove they were may have access to if the IRS ever audits your account.

Does Bank of America charge a fee if I do not use my HSA?

Yes. Bank of America charges an annual maintenance fee regardless of whether you make withdrawals or contributions. The fee applies as long as the account is open. If you no longer need the HSA, you can close it, but you should roll the remaining balance to another custodian or withdraw it (and pay taxes and penalties if it is not used for medical expenses) before closing.

Can I open a Bank of America HSA if my employer does not offer one?

Yes, as long as you enroll in a high-deductible health plan on your own through the health insurance marketplace or a private insurer. You would then contact Bank of America to set up the custodial account. Your plan administrator must approve Bank of America as a custodian, so confirm that before you open the account.

This guide is for general information only and is not medical, financial, legal, or other professional advice. For decisions specific to your situation, consult a qualified professional. See our Editorial Policy.