Where to open an HSA

You open an HSA through a bank, credit union, or insurance company—not through your employer or the government, even if your employer offers the plan. Your employer may have partnered with one or two specific providers and will tell you who they are during benefits enrollment, but you are not required to use their choice. You can open an HSA with any provider that offers them, as long as you are enrolled in an HSA-may be able to access health plan.

The most common places to open an HSA are large banks (Chase, Bank of America, Wells Fargo), online banks (Fidelity, Lively, HealthEquity), and insurance companies themselves. Some credit unions offer HSAs, though fewer than banks do. Start by checking whether your employer's benefits materials list a preferred provider—if they do, that provider usually waives setup fees and may offer employer matching contributions. If you are choosing on your own, compare the three things that matter: monthly fees, investment options, and how straightforward the account is to use online.

Key Takeaways

  • You must be enrolled in an HSA-may be able to access health plan to open an HSA, and your plan must be a high-deductible health plan (HDHP) with no other health coverage.
  • Your employer may have a preferred HSA provider, but you can open an account with any bank, credit union, or insurance company that offers HSAs.
  • Compare providers on monthly fees (some charge $0, others charge $2 to $5), investment options, and whether they let you invest unused money or just hold it in cash.
  • You will need your Social Security number, proof of income, and your health plan details to open an account.
  • If you change jobs or health plans, you keep your HSA and can move money between providers if fees or features no longer suit you.

What you need before you open an account

Have three things ready: your Social Security number, a government-issued ID, and the details of your HSA-may be able to access health plan. The provider will ask for your plan name, deductible amount, and the date your coverage started. If you are opening an account through your employer's benefits portal, the plan information is usually filled in automatically.

You will also need a way to fund the account—either a bank account for transfers or a payroll deduction form if your employer is contributing. If you are self-employed or your employer does not offer payroll deduction, you will fund the account yourself through bank transfers or checks.

Checking whether your health plan qualifies

Not every health plan is HSA-may be able to access. Your plan must be a high-deductible health plan (HDHP), which means it has a deductible of at least $1,600 for individual coverage or $3,200 for family coverage in 2024. The exact amounts change each year. Your plan documents or your insurance company's website will state whether it is HSA-may be able to access—look for the phrase "HSA-may be able to access" or "HSA-compatible" in the plan name or description.

You also cannot have other health coverage at the same time. If you have Medicare, Medicaid, a spouse's plan, or coverage through a parent, you may not be able to open an HSA. The one exception is a limited-scope dental or vision plan, which does not disqualify you. If you are unsure whether your coverage counts, call your insurance company and ask directly whether you can open an HSA.

Comparing HSA providers on fees and features

Monthly maintenance fees range from $0 to $5, and some providers waive fees if you keep a minimum balance (usually $1,000 to $2,500). A $3 monthly fee costs you $36 a year, which matters if your balance is small. Online banks and some credit unions tend to charge lower fees than traditional banks.

The second thing to compare is whether the provider lets you invest your HSA money. If you only keep cash in the account, your money sits idle. If the provider offers investment options—mutual funds, index funds, or brokerage accounts—you can grow your balance over time. This matters more if you plan to keep money in the account for years rather than spend it when ready on medical costs.

The third is ease of use: Can you check your balance and make transfers on a mobile app? Can you pay medical bills directly from the account, or do you have to transfer money out first? Some providers issue debit cards; others do not. Read reviews or call the provider's customer service line and ask how long transfers take and whether you can pay providers directly.

Opening an account through your employer

If your employer offers an HSA, you will usually enroll during your company's benefits open enrollment period, which is typically once a year in the fall. Your employer will direct you to their chosen provider's website or enrollment portal. You will create a login, enter your information, and choose how much to contribute from each paycheck. Your employer may also contribute money on your behalf, which is information programs—check your benefits materials to see whether they do.

If you miss open enrollment, you may not be able to open an HSA until the next enrollment period, unless you have a may have access to life event (marriage, birth, loss of coverage, or a change in your employer's plan). Some employers allow HSA enrollment year-round, so ask your benefits department.

Opening an account on your own

If you buy your own health plan through the individual market or are self-employed, you can open an HSA directly with any provider. Visit the provider's website, click "Open an Account" or "Sign Up," and follow their steps. You will enter your personal information, Social Security number, and health plan details. Most providers let you open an account in 10 to 15 minutes online.

You will then choose how to fund it: one-time transfers from your bank account, recurring monthly transfers, or checks mailed to the provider. If you are self-employed, you can also deduct your HSA contributions on your tax return, which lowers your taxable income. Keep records of all contributions for tax time.

Moving your HSA to a different provider

You are not locked into your first provider. If you find a provider with lower fees, better investment options, or a better app, you can move your HSA. This is called a trustee-to-trustee transfer, and it does not count as a withdrawal, so there are no taxes or penalties.

Contact your new provider and ask them to initiate the transfer. They will request your account information from your old provider and move the money over. The process usually takes one to two weeks. You can do this as many times as you want, though some providers charge a small fee ($25 to $50) to process an outgoing transfer. Check before you move.

Frequently Asked Questions

Can I open an HSA if I am on Medicare?

No. Once you enroll in Medicare, you are no longer may be able to access to open a new HSA or contribute to an existing one. If you already have an HSA, you can keep it and withdraw money for medical costs without penalty, but you cannot add new money to it.

What happens to my HSA if I change jobs?

Your HSA stays with you. It is your account, not your employer's. You keep the money and can continue to use it for medical costs even after you leave the job. If your new employer offers an HSA with a different provider, you can keep your old account or move the money to the new one—the choice is yours.

Do I have to use my employer's HSA provider?

No. Your employer may have a preferred provider, but you can open an HSA with any bank or insurance company that offers them, as long as you are enrolled in an HSA-may be able to access plan. Using your employer's provider may save you fees or earn you matching contributions, so compare before you choose.

How much does it cost to open an HSA?

Opening an account is free. Some providers charge monthly maintenance fees ($0 to $5), and some waive fees if you keep a minimum balance. You will only pay fees after the account is open, not to open it.

Can I open an HSA if I am self-employed?

Yes, as long as you are enrolled in an HSA-may be able to access health plan. You can open an account with any provider and contribute up to the annual limit set by the IRS (which varies by whether you have individual or family coverage). You can deduct your contributions on your tax return.