Banks, brokerages, and your health plan all offer HSAs — but the account itself and the investment options are separate decisions
You can open a health savings account through your health insurance plan, a bank, a brokerage firm, or a financial services company that specializes in HSAs. The account where you keep the money and the institution that holds it are not the same thing. Your health plan may offer an HSA, but that does not mean you have to use it — you can open one elsewhere and still be covered by the same insurance. The real choice is between convenience (opening where your insurance is) and investment options (opening where you can invest the money beyond a basic savings account).
Key Takeaways
- Your health insurance plan may offer an HSA, but you can open one at a bank or brokerage instead if you want more control over how the money is invested.
- Banks typically offer HSAs as savings accounts with little or no investment option, while brokerages let you invest HSA funds in stocks, bonds, and mutual funds.
- Health plan HSAs are often free to open and may have lower fees, but they may also have spending restrictions or limited investment choices.
- You need to be enrolled in a high-deductible health plan to open or contribute to an HSA, regardless of where you open it.
- Opening an HSA at a brokerage takes longer than opening one through your health plan, but gives you more options for growing the money over time.
Opening an HSA through your health insurance plan
Most health plans that may have access to for HSA contributions offer an HSA directly to their members. When you enroll in a high-deductible health plan, the insurance company or plan administrator usually sends you information about opening an account. This is the fastest route — you can often open the account online in minutes, and the plan handles the paperwork with the IRS automatically.
Plan-based HSAs are usually free to open and have no monthly maintenance fees. The trade-off is limited investment options. Most plan HSAs function as savings accounts only, earning a small interest rate (often less than 1 percent) but not allowing you to buy stocks or mutual funds. Some larger plans partner with investment firms and do offer investment options, but this varies widely by plan.
If your plan offers an HSA, you will receive the account details and a debit card in the mail. You can start contributing when ready once you are enrolled in the high-deductible plan. The plan will also send you tax forms at the end of the year if you made contributions.
Opening an HSA at a bank
Banks offer HSAs as a middle ground between plan accounts and brokerage accounts. You get a dedicated savings account, often with a debit card and online access, but limited or no investment options. Some banks allow you to link the HSA to a money market account or certificate of deposit for slightly higher interest rates, but most do not offer stock or mutual fund investments.
Bank HSAs typically have monthly maintenance fees ranging from zero to five dollars, though some waive fees if you maintain a minimum balance. Opening takes one to three business days. You will need to provide proof that you are enrolled in a high-deductible health plan — usually a copy of your plan documents or a letter from your insurance company. The bank will issue you a tax identification number for the account and handle the IRS reporting.
Banks that offer HSAs include major institutions like Fidelity Bank, Lively (which partners with multiple banks), and some regional banks. You can search for "HSA savings account" plus your state to find local options, or check with your current bank to see if they offer HSAs.
Opening an HSA at a brokerage or investment firm
Brokerages and investment firms like Fidelity, Vanguard, Charles Schwab, and E*TRADE offer HSAs with full investment options. You can hold the money in a savings account, but you can also buy stocks, bonds, index funds, and mutual funds within the same account. This matters if you plan to keep the HSA long-term and let the money grow — the investment options can significantly increase the account's value over decades.
Brokerage HSAs usually have no monthly fees, but some charge a small annual custodial fee (typically $25 to $50). Opening takes three to five business days. You will need to provide proof of high-deductible health plan enrollment, usually by uploading a copy of your plan documents or insurance card. The brokerage will assign a tax identification number and handle all IRS reporting.
The main drawback is that brokerage HSAs are less convenient for day-to-day medical spending. You may not receive a debit card, or the debit card may only work for withdrawals, not direct purchases. If you plan to use the HSA primarily to pay for current medical expenses, a bank or plan account is simpler. If you plan to save the money and invest it, a brokerage account makes more sense.
Specialized HSA providers
Some companies exist solely to administer HSAs. Lively, HealthEquity, and Conduent are the largest. These firms partner with banks for the savings account portion and with investment firms for the investment options. They handle all the paperwork and tax reporting, and they often have lower fees than traditional banks or brokerages.
Specialized providers typically charge no monthly fees and offer both savings and investment options in one account. Opening takes two to five business days. You will need proof of high-deductible health plan enrollment. These providers are useful if your health plan does not offer an HSA and you want a single account that combines savings and investing without the complexity of managing accounts at multiple institutions.
What you need to open an HSA anywhere
Regardless of where you open the account, you must be enrolled in a high-deductible health plan. The IRS defines a high-deductible plan as one with a deductible of at least $1,550 for individual coverage or $3,100 for family coverage in 2024 (these amounts change yearly). You will need to provide proof of enrollment — usually a copy of your insurance card, plan documents, or a letter from your insurance company confirming the plan qualifies.
You will also need a Social Security number or tax identification number, a valid address, and a way to fund the account (bank account or credit card for initial deposit). Some institutions require a minimum opening deposit, usually $0 to $25, though this varies.
If you are self-employed or have no health insurance yet, you cannot open an HSA until you enroll in a may have access to plan. Once you enroll, you can open an account retroactively for that calendar year, as long as you open it by the tax filing important date (usually April 15 of the following year).
Comparing the routes: a quick reference
| Route | Opening time | Monthly fees | Investment options | Best for |
|---|---|---|---|---|
| Health plan HSA | Minutes to 1 day | Usually $0 | Savings only (usually) | Convenience, low fees, when ready access |
| Bank HSA | 1–3 business days | $0–$5 | Savings, sometimes money market | Debit card access, moderate fees |
| Brokerage HSA | 3–5 business days | Usually $0 | Stocks, funds, bonds, savings | Long-term investing, growth |
| Specialized HSA provider | 2–5 business days | Usually $0 | Stocks, funds, bonds, savings | All-in-one account, no plan HSA available |
Frequently Asked Questions
Can I have more than one HSA at the same time?
No. The IRS limits you to one HSA per year if you have individual coverage, or one HSA per family if you have family coverage. If you open a second account, you must close one of them or face tax penalties. You can move money between HSAs (called a trustee-to-trustee transfer) without penalty, so switching providers is allowed — you just cannot hold two active accounts simultaneously.
Do I have to use my health plan's HSA, or can I open one elsewhere?
You can open an HSA anywhere, even if your health plan offers one. Your HSA and your health insurance are separate. Some people prefer their plan's HSA for convenience, while others prefer a brokerage HSA for investment options. The only requirement is that you are enrolled in a high-deductible health plan — it does not matter which institution holds the account.
What happens to my HSA if I change health plans or leave my job?
Your HSA stays with you and belongs to you personally, not to your employer or health plan. If you change jobs or switch insurance, the account continues to exist and you keep the money in it. You can keep contributing as long as you remain enrolled in a high-deductible plan. If you lose high-deductible coverage, you can no longer contribute, but you can still withdraw money for medical expenses without penalty.
How long does it take to start using the HSA after I open it?
Plan-based HSAs are usually active within minutes to one business day. Bank and brokerage accounts take one to five business days for the account to be fully set up and funded. Once the account is open, you can contribute when ready, but if you are funding it by bank transfer, the money may take one to three additional business days to arrive.
Can I open an HSA if I am self-employed?
Yes, but only if you purchase a high-deductible health plan on your own (through the health insurance marketplace or directly from an insurer). You cannot open an HSA without health insurance. Once you have the plan, you can open an HSA at any of the institutions listed above using the same process as anyone else.