Banks and financial institutions offer HSAs directly to individuals

You can open a Health Savings Account at most banks, credit unions, and online financial companies. The account itself works like a regular savings account — you deposit money, it sits there earning a small amount of interest, and you withdraw it to pay medical bills. The difference is that HSAs have tax advantages that regular savings accounts don't have, but only if you meet certain requirements (which you can read about in the Health Savings Accounts guide).

The easiest place to start is your current bank. Call or visit their website and ask if they offer HSAs. If they do, they'll walk you through opening one. If they don't, you can open an HSA at another bank without closing your existing accounts — many people keep their HSA at one place and their regular checking at another.

Online banks and financial companies often have lower fees and higher interest rates on HSAs than traditional banks do. You can search for "HSA providers" online and compare what each one charges. Common providers include Fidelity, Lively, HealthEquity, and Optum Bank, though this list changes and new providers appear regularly.

Your health insurance company may offer an HSA option

Some health insurance plans come with an HSA already set up through a specific provider. When you enroll in a plan that allows an HSA, the insurance company will tell you which HSA provider they work with. You don't have to use their provider — you can open an HSA elsewhere — but using theirs is sometimes simpler because the insurance company and HSA provider already share information about your coverage.

If your employer offers health insurance, ask your HR or benefits department whether your plan includes an HSA option. They can tell you which provider is connected to your plan and whether your employer contributes money to it (some employers do, which is information programs for medical expenses).

Key Takeaways

  • You can open an HSA at most banks, credit unions, and online financial companies by calling or visiting their website.
  • Your health insurance company may offer an HSA through a specific provider, which can simplify setup if you choose to use it.
  • You are not required to use your insurance company's HSA provider — you can open an account at any bank or financial company that offers HSAs.
  • Before opening an HSA, confirm that your health insurance plan qualifies — only certain types of plans allow HSAs, and using one with the wrong plan type can create tax problems.
  • Compare fees and interest rates across providers, because HSA fees vary and can reduce the money available for medical expenses over time.

What to bring when you open an account

Opening an HSA is similar to opening any bank account. You'll need a government-issued photo ID (a driver's license or passport), your Social Security number, and proof of your address (a recent utility bill or lease works). Some providers also ask for your health insurance information to confirm that your plan qualifies for an HSA.

If you're opening an HSA online, you can usually upload photos of your documents instead of visiting in person. The process typically takes 10 to 15 minutes, and your account is ready to use within a few business days.

Employer-sponsored HSAs through payroll

If your employer offers an HSA, you can have money deducted from your paycheck before taxes are taken out. This saves you money on taxes compared to opening an HSA on your own and depositing after-tax money. Your employer will give you enrollment forms during open enrollment (usually once a year) or when you first become may be able to access.

Even if your employer offers an HSA through payroll, you can still open a separate HSA at another bank if you want to. Some people do this to move money between accounts or to have more control over how their HSA is invested. The rules about how much you can contribute in total still explore — you can't put in more money across all your HSAs than the annual limit, regardless of how many accounts you have.

Individual HSAs if you don't have employer coverage

If you buy your own health insurance (not through an employer), you can still open an HSA as long as your plan qualifies. You'll open it the same way — at a bank or financial company — and you'll deposit money yourself rather than through payroll deduction. The tax advantage is smaller because you have to handle the paperwork yourself at tax time, but it's still there.

Self-employed people and people who work for small employers without health benefits often use individual HSAs. The process is the same: find a provider, open an account, and deposit money. You'll report the contributions on your tax return to get the tax deduction.

HSA providers to consider

No single provider is right for everyone — what matters is fees, interest rate, and whether they work with your insurance plan. Some providers charge monthly maintenance fees (ranging from nothing to several dollars), some charge per transaction, and some charge for investment options if you want to invest your HSA money rather than keep it in savings.

Before opening an account, ask the provider about all their fees in writing. A provider with a low interest rate but high fees might cost you more than one with a higher interest rate and no fees. Many providers publish their fee schedules online, so you can compare before you decide.

Frequently Asked Questions

Can I have more than one HSA at the same time?

You can have multiple HSA accounts, but the total amount you deposit across all of them in a year cannot exceed the annual contribution limit set by the IRS. If you exceed the limit, you'll owe taxes and penalties. Most people keep one HSA to avoid confusion, but some people move money between accounts for investment or fee reasons.

Do I have to use the HSA provider my insurance company recommends?

No. Your insurance company may recommend a provider, but you can open an HSA at any bank or financial company that offers them. Using your insurance company's provider can be simpler because they share information automatically, but it's not required.

What happens to my HSA if I change jobs or health insurance?

Your HSA stays yours. The money in it doesn't disappear, and you can keep the account open even if you change employers or switch to a different health plan. You can only add new money to it if your new plan qualifies for an HSA, but money already in the account is yours to use for medical expenses anytime.

Can I open an HSA online, or do I have to go to a bank in person?

Most banks and all major online HSA providers let you open an account entirely online. You upload photos of your ID and proof of address, and your account opens within a few business days. Some local banks may require an in-person visit, so ask before you start the process.

What if my bank doesn't offer HSAs?

You can open an HSA at a different bank without closing your current accounts. Many people keep their HSA at one institution and their regular checking at another. Online providers like Fidelity or HealthEquity often have lower fees than traditional banks, so they're worth comparing even if your bank does offer HSAs.