Most banks and credit unions offer HSAs, but you choose the custodian separately from your health plan
Your health insurance plan does not pick your HSA bank for you. Instead, you open an HSA with any bank, credit union, or financial institution that offers them — and that choice is completely separate from which health plan you have. This means you can shop around for the best rates, lowest fees, and features that matter to you, just like opening any other savings account.
The catch is that your HSA custodian (the bank holding your money) must be IRS-approved. This is not a long list of obscure institutions — it includes most major banks, many regional banks, most credit unions, and several online-only financial companies. The IRS does not publish a master list, but your health plan's paperwork usually includes a list of approved custodians they work with, and you can ask your plan administrator for other options.
You do not have to use a custodian your plan recommends. You can open an HSA anywhere that is IRS-approved, even if your plan has never heard of that bank. The only requirement is that you tell your health plan which custodian you chose, so they know where to send your employer contributions (if you have them) and so the IRS can track your account.
Key Takeaways
- Your HSA custodian is your choice and does not have to be connected to your health insurance plan in any way.
- Any IRS-approved bank, credit union, or online financial company can hold an HSA, and most major institutions offer them.
- Compare fees, interest rates on savings, and investment options before opening, because costs vary widely between custodians.
- You must notify your health plan which custodian you chose so employer contributions reach the right account.
- If you switch jobs or health plans, your HSA stays with you and moves to whichever custodian you choose next.
Where to find an IRS-approved HSA custodian
Start by checking the list your health plan provided when you enrolled. Most plans include a list of custodians they work with regularly, which means those banks have already done the paperwork to be IRS-approved and the plan knows how to route contributions. This is the fastest route if one of those options works for you.
If you want to look beyond your plan's list, call your plan's customer service line and ask for the full list of IRS-approved custodians they recognize. They may have more options than the printed materials showed. You can also search online for "HSA custodians" or "HSA banks," but verify that any institution you find is actually IRS-approved by checking their website or calling them directly.
Credit unions often offer HSAs and may have lower fees than banks, especially if you are already a member. If you belong to a credit union, ask whether they offer HSAs and what the fees are. Many credit unions participate in shared branching networks, which means you can do in-person banking at other credit unions if you travel or move.
What to compare when choosing an HSA custodian
Not all HSA accounts are the same. Before opening, look at the fee structure. Some custodians charge a monthly maintenance fee (ranging from nothing to several dollars per month), a per-transaction fee, or a fee to invest your HSA money. Others charge nothing if you keep a minimum balance. Over a year, these fees add up — a $3 monthly fee costs $36 annually, which is real money in an account you are trying to grow.
Check the interest rate on the savings portion of your account. Some custodians offer a savings account within the HSA that earns interest; others offer almost nothing. If you plan to keep your HSA as a savings account rather than investing it, the interest rate matters. Compare rates the same way you would for any savings account.
Ask whether the custodian offers investment options. If you want to invest your HSA money in stocks, bonds, or mutual funds (rather than keeping it in cash), not all custodians support this. Some require a minimum balance before you can invest. Others make it straightforward and cheap. If investing is important to you, confirm the custodian offers it before you open the account.
Finally, check how straightforward it is to use the account. Can you access it online? Is there a mobile app? Can you see your balance and transaction history easily? Some custodians make this straightforward; others make it frustrating. Since you will be using this account for years, ease of use matters.
Large banks that offer HSAs
Most major national banks offer HSAs. Bank of America, Wells Fargo, Chase, and Citibank all have HSA products. These banks usually have physical branches, which can be helpful if you prefer in-person banking or need to deposit checks. However, large banks often charge monthly maintenance fees and may have higher minimums to avoid fees.
Call your bank's main customer service line or visit their website and search for "HSA" to find out whether they offer them and what the terms are. If you already bank there, opening an HSA might be convenient because you can manage all your accounts in one place. Just compare their fees and rates to other options before deciding.
Online banks and smaller institutions with HSAs
Online banks often have lower fees and higher interest rates than large national banks because they do not have the cost of physical branches. Custodians like Fidelity, Lively, HealthEquity, and Betterment all offer HSAs online. These companies specialize in HSAs, so they often have features designed specifically for HSA users, like straightforward investment options and clear tracking of how much you can contribute each year.
The trade-off is that online custodians do not have physical locations. If you need to deposit a check, you may have to mail it or use mobile deposit (taking a photo of the check with your phone). For most people, this is not a problem, but it is worth knowing before you open an account.
Regional and community banks also offer HSAs. If you have a relationship with a local bank or credit union, ask them about HSA options. They may offer competitive rates and fees, and you will have the option of talking to someone in person if you have questions.
How to open an HSA with a custodian
Once you have chosen a custodian, the process is straightforward. Visit their website or call their customer service line and ask to open an HSA. You will need to provide your name, address, Social Security number, and information about your health plan (usually just the plan name and your member ID). Some custodians let you open an account entirely online; others may require you to mail in a form or call.
After you open the account, you will receive account details and routing information. Give this information to your employer's benefits department or your health plan so they know where to send any contributions. If you are self-employed or contributing on your own, you will use this information when you make deposits.
The account is usually active within a few business days. You can start using it right away, though employer contributions may take a paycheck or two to arrive if you just set it up mid-year.
What happens if you change jobs or health plans
Your HSA belongs to you, not to your employer or your health plan. If you change jobs, switch health plans, or leave your job entirely, your HSA stays with you. The money in the account is yours to keep and use for may have access to medical expenses whenever you need it, even years later.
If you change custodians (for example, if your new employer uses a different bank), you can transfer your HSA balance to the new custodian. This is called a trustee-to-trustee transfer, and it is free. You do not have to close your old account when ready — you can keep it open if you like, though most people close it once the balance is moved. Ask your new custodian how to request the transfer; they will handle the paperwork with your old custodian.
Frequently Asked Questions
Can I have an HSA with more than one bank?
Technically yes, but it is not recommended. You can open HSAs at multiple custodians, but your total contributions across all accounts cannot exceed the annual limit set by the IRS. Tracking contributions across multiple accounts is confusing and increases the risk of over-contributing, which triggers taxes and penalties. Most people keep one HSA with one custodian.
Do I have to use the custodian my employer recommends?
No. Your employer may recommend a custodian for convenience, but you can choose any IRS-approved custodian. If you find a better option elsewhere, you can open an account there and tell your employer where to send contributions. Your employer is required to send contributions wherever you direct them.
What if my bank is not IRS-approved?
If your current bank does not offer HSAs or is not IRS-approved, you will need to open an account at a different institution. This does not mean closing your regular bank account — you can keep both. Many people maintain a checking account at one bank and an HSA at another.
Are there fees if I do not use my HSA?
Some custodians charge a monthly maintenance fee whether you use the account or not. Others charge nothing as long as you keep a minimum balance. Check the fee structure before opening. If you are not sure whether you will use the account right away, choose a custodian with no monthly fees.
Can I move my HSA to a different bank later?
Yes. You can transfer your HSA balance to a different custodian at any time using a trustee-to-trustee transfer. The process is free and usually takes one to two weeks. This is useful if you find a custodian with better rates or features after you have already opened your account.