What Bank of America charges for HSA accounts

Bank of America does charge fees for its HSA, but the amount depends on which HSA product you choose and how you use it. The bank offers two main HSA options: the Bank of America HSA (a basic savings account) and the Bank of America Advisors HSA (which includes investment options). The basic HSA has no monthly maintenance fee, but the Advisors version charges an annual advisory fee based on your account balance — typically 0.35% to 0.60% per year, depending on how much money you have invested.

Beyond the account fee itself, you may encounter other charges. Bank of America charges $2.50 per withdrawal if you use an out-of-network ATM, and $10 if you overdraft the account. If you request a wire transfer, that costs $15 for domestic transfers and $45 for international ones. Debit card replacement runs $15. These are not automatic charges — they only appear if you actually use those services.

The investment options within the Advisors HSA also carry their own costs. If you invest your HSA balance in mutual funds or other securities, those funds have expense ratios (annual costs charged by the fund manager), which are separate from Bank of America's advisory fee. A fund's expense ratio typically ranges from 0.05% to 1% per year, depending on the fund.

Key Takeaways

  • Bank of America's basic HSA has no monthly or annual maintenance fee, but the Advisors HSA charges an annual advisory fee of 0.35% to 0.60% based on your balance.
  • Out-of-network ATM withdrawals cost $2.50 each, overdrafts cost $10, and wire transfers cost $15 to $45 depending on destination.
  • If you invest money within the Advisors HSA, the mutual funds or other investments charge their own expense ratios on top of Bank of America's advisory fee.
  • The basic HSA is free to maintain but offers no investment options — your money sits in a savings account earning interest.

How the advisory fee works on the Advisors HSA

The Advisors HSA fee is charged as a percentage of your invested balance, not your total HSA balance. If you have $10,000 in the account but only $6,000 is invested in funds, the fee applies to that $6,000. The fee is deducted automatically from your account, usually quarterly, so you do not see a separate bill — it straightforward reduces your balance.

Bank of America calculates the fee based on your average daily balance during the quarter. If your balance fluctuates throughout the quarter, the bank averages those daily balances and applies the percentage to that average. This means the exact fee you pay varies slightly from quarter to quarter depending on how much money you have invested and when.

When you pay nothing at all

If you choose the basic Bank of America HSA and never invest the money, you pay no fees to the bank. You can keep your HSA balance in the savings account indefinitely, earn a small amount of interest (the rate varies and is set by the bank), and withdraw money without penalty as long as you use Bank of America ATMs or make transfers through the bank's website or app.

You also avoid fees if you never trigger the optional services. If you do not overdraft, do not use out-of-network ATMs, and do not request wire transfers, those fees never appear on your statement. The only unavoidable charge on the Advisors HSA is the annual advisory fee itself if you choose that account type.

Comparing Bank of America HSA to other banks

Other banks and HSA custodians structure their fees differently. Some charge a flat monthly fee ($2 to $5 per month) regardless of balance, while others charge no fees at all but offer limited investment options or pay lower interest rates on savings. Some custodians charge per transaction — for example, $1 per withdrawal or $5 per investment trade. A few charge nothing and offer both savings and investment options, though they may limit which funds you can choose from.

The total cost of an HSA depends on how you use it. If you keep a small balance and rarely invest, a flat monthly fee might cost you more than Bank of America's percentage-based advisory fee. If you have a large balance and invest heavily, the opposite is true. Before opening an account, compare the fee structure to your expected usage and balance.

HSA fees versus employer-sponsored HSA plans

If your employer offers an HSA through a third-party custodian (rather than Bank of America), that plan may have different fees entirely. Many employer plans charge no fees at all, or charge only when you invest beyond a certain threshold. Some employers subsidize the HSA fees for their employees, meaning the employer pays the custodian's charges and you see no cost.

If you have access to an employer HSA, compare its fee structure to Bank of America's before opening a personal account. You may be able to keep your employer HSA and open a Bank of America HSA separately, but you cannot contribute more than the annual IRS limit across all HSAs combined. The limit for 2024 is $4,150 for individual coverage and $8,300 for family coverage (these amounts change yearly).

How to minimize HSA fees at Bank of America

If you want to use Bank of America's HSA with the lowest possible cost, choose the basic HSA and keep your money in the savings account rather than investing it. This eliminates the advisory fee entirely. Use Bank of America's ATMs and online transfers to avoid the $2.50 out-of-network ATM fee. Keep your account in good standing to avoid overdraft charges.

If you do want to invest your HSA balance, the Advisors HSA fee may be worth it if your balance is large enough that the investment growth outpaces the advisory fee. Generally, if you have more than $5,000 to $10,000 invested, the potential returns from investing may exceed the cost of the advisory fee, but this depends on market performance and the specific funds you choose.

Frequently Asked Questions

Does Bank of America charge a monthly fee for HSA accounts?

The basic HSA has no monthly fee. The Advisors HSA does not charge a monthly fee either, but instead charges an annual advisory fee of 0.35% to 0.60% based on your invested balance, deducted quarterly.

Can I avoid the advisory fee by not investing?

Yes. If you choose the basic HSA, there is no advisory fee. If you choose the Advisors HSA but keep all your money in the savings portion and do not invest, you still pay the advisory fee on zero dollars, which means no charge. However, the Advisors HSA is designed for people who want to invest, so the basic HSA is the better choice if you do not plan to invest.

What happens if I use an ATM that is not Bank of America?

Bank of America charges $2.50 per out-of-network ATM withdrawal. The ATM operator may also charge their own fee on top of that. Using Bank of America ATMs is free.

Are HSA investment fees the same as the advisory fee?

No. The advisory fee is what Bank of America charges you. The investment fees (called expense ratios) are what the mutual fund or other investment charges. Both are deducted from your account, so your total cost is the sum of both.

Can I move my HSA to a different bank to avoid fees?

Yes. You can transfer your HSA balance to another custodian. The process is called a trustee-to-trustee transfer, and Bank of America does not charge a fee for this. However, your new custodian may charge a transfer fee, and you should research their fee structure before moving.