Opening a Health Savings Account at Fidelity: Step-by-Step

How to open an HSA at Fidelity

Fidelity lets you open an HSA in two ways: through an employer plan if your company uses Fidelity as the administrator, or as an individual account if you have a high-deductible health plan (HDHP) and are not covered by another HSA. The process takes about 10 to 15 minutes online, and you can fund it when ready with a bank transfer or by rolling over money from an existing HSA at another institution.

If you are opening through your employer, your HR or benefits department will direct you to Fidelity's enrollment portal during open enrollment or when you first become may be able to access. If you are opening an individual HSA, you go directly to Fidelity's website, confirm you meet the HDHP requirement, and complete the account setup form. Either way, you will need your Social Security number, a valid ID, and proof of your HDHP coverage (your insurance card or a letter from your plan showing the deductible amount).

Key Takeaways

Fidelity offers HSAs both through employers and as standalone accounts for people with individual high-deductible health plans.
You need proof of HDHP coverage before opening an account; your insurance card or a plan document showing the deductible will work.
The online setup takes 10 to 15 minutes and you can fund the account the same day through bank transfer or rollover.
Fidelity charges no monthly maintenance fee for HSAs, though investment options and fees vary depending on how you invest the balance.

What you need before you start

Gather these documents before you begin: your Social Security number, a government-issued ID (driver's license or passport), and proof that you are enrolled in an HDHP. The proof can be your insurance card, a benefits summary from your employer, or a letter from your health plan showing the deductible amount. If you are rolling over money from another HSA, you will also need the account number and routing information from that institution.

Confirm that your health plan actually qualifies as an HDHP. For 2024, an HDHP has a minimum deductible of $1,600 for individual coverage or $3,200 for family coverage, and an out-of-pocket maximum of no more than $4,000 for individual or $8,000 for family. Your insurance company or employer benefits team can tell you whether your plan meets these thresholds. If you are unsure, ask before you open the account—opening one when you do not meet the requirement can create tax complications later.

Opening an account through your employer

If your company uses Fidelity to administer HSAs, the enrollment happens through your employer's benefits portal, usually during open enrollment or when you first become may be able to access. Your HR department will send you a link or instructions pointing you to Fidelity's enrollment page. You log in with your employer credentials, confirm your HDHP coverage, and complete the account setup. Fidelity will then send you a confirmation email with your account number and login details.

Some employers automatically enroll may be able to access employees in an HSA; others require you to opt in. Check your benefits materials or ask HR whether enrollment is automatic or whether you need to take action. If your employer offers an HSA match (a contribution they make on your behalf), that money will be deposited once your account is open and active.

Opening an individual HSA at Fidelity

Go to Fidelity's website and navigate to the HSA section. Click the button to open a new account and select "Individual HSA" if that option appears. You will be asked to confirm that you have an HDHP and are not covered by any other HSA. Answer these questions honestly—Fidelity does not verify HDHP status at account opening, but the IRS can audit this later, and false answers can result in penalties and taxes on your withdrawals.

Complete the process form with your personal information, Social Security number, and contact details. You will then be asked how you want to fund the account: when ready transfer from a bank account, a check, or a rollover from another HSA. If you choose a bank transfer, have your routing and account numbers ready. The account is usually active within one business day, and you can begin making contributions or investments right away.

Funding your account and choosing investments

Once your account is open, you can deposit money in several ways. You can transfer funds from your bank account, mail a check, or roll over money from an existing HSA at another bank or brokerage. If your employer contributes to your HSA, those deposits will arrive on the schedule your company sets (usually monthly or per paycheck). You can also make catch-up contributions if you are 55 or older, which allows you to add an extra $1,000 per year beyond the standard limit.

Fidelity lets you keep your HSA balance in a cash account (similar to a savings account) or invest it in mutual funds, exchange-traded funds (ETFs), or stocks. The cash option earns a small amount of interest and carries no investment risk. If you invest, you pay Fidelity's standard fund expense ratios, which vary by fund but are typically between 0.03% and 0.50% per year. You can switch between cash and investments at any time without penalty.

Using your HSA debit card and making withdrawals

Fidelity will mail you a debit card linked to your HSA, usually within 5 to 10 business days of account opening. You can use this card to pay for may have access to medical expenses at the point of sale—copays, prescriptions, dental work, vision care, and many other costs. The card works like any other debit card, and the money comes directly from your HSA balance.

Keep receipts for all debit card purchases. The IRS requires you to be able to prove that the expense was may have access to if you are ever audited. You can also withdraw money by transferring it to your personal bank account or requesting a check. Withdrawals for non-may have access to expenses are taxed as income plus a 20% penalty, so only take money out for medical costs unless you are 65 or older (at which point the penalty goes away, though income tax still applies to non-medical withdrawals).

Fees and account maintenance

Fidelity charges no monthly maintenance fee for HSAs. You will not pay an annual account fee, a setup fee, or a fee to close the account. If you invest your HSA balance, you pay the expense ratio of the funds you choose, which is deducted automatically from your investment returns. If you keep your balance in cash, there is no investment fee, though the interest rate is typically very low (often below 0.5% annually).

Your account requires no ongoing action. Money you do not spend stays in the account and rolls over year to year—there is no "use it or lose it" important date like there is with flexible spending accounts. You can leave the account open even if you change jobs or switch health plans, as long as you remain enrolled in an HDHP. If you move to a non-HDHP plan, you can no longer make new contributions, but you can keep the account and continue to withdraw money for may have access to medical expenses.

Frequently Asked Questions

Can I open a Fidelity HSA if my employer does not use Fidelity?

Yes. You can open an individual HSA directly with Fidelity as long as you have an HDHP and are not covered by another HSA. You do not need your employer to be involved. However, if your employer offers an HSA through a different provider, you may not be able to have both accounts at the same time—check your employer's plan rules.

How long does it take to open an account and start using it?

The online process takes 10 to 15 minutes. Your account is usually active within one business day, and you can make transfers or investments when ready. Your debit card arrives by mail in 5 to 10 business days. If you need to pay a medical expense before the card arrives, you can withdraw money by transfer or check.

What happens to my HSA if I leave my job?

Your HSA stays yours. If your employer-sponsored HSA is at Fidelity, you can keep it open and continue to use it for may have access to medical expenses. You can also roll it over to an individual HSA at Fidelity or another provider. If your employer's HSA is at a different institution, you can roll that money into a Fidelity HSA without tax or penalty.

Can I invest my entire HSA balance, or do I need to keep some in cash?

You can invest as much or as little as you want. Some people keep a few months of expected medical expenses in cash and invest the rest. Others invest everything and withdraw from investments as needed. There is no requirement to keep a minimum cash balance, so the choice is yours based on how soon you think you will need the money.

What if I withdraw money for something that is not a may have access to medical expense?

You will owe income tax on the amount withdrawn plus a 20% penalty. For example, if you withdraw $500 for a non-may have access to expense and you are in the 24% tax bracket, you would owe $120 in income tax plus $100 in penalty, for a total of $220. The penalty goes away at age 65, but income tax still applies. Keep receipts so you can prove an expense was may have access to if needed.

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.