Bank of America charges fees for most HSA accounts, but the amount depends on which HSA product you choose and how you use it

Bank of America offers HSAs through two main routes: the Bank of America HSA (their own product) and the Fidelity HSA (which they partner with). The Bank of America HSA charges a monthly maintenance fee of $2.50, though this fee is waived if you maintain a minimum balance—typically $2,500 or more, depending on your account type. The Fidelity HSA, by contrast, has no monthly maintenance fee at all, making it the lower-cost option if you want to avoid recurring charges.

Beyond the monthly fee, both accounts may charge additional fees for specific actions: wire transfers, overdrafts, stop payments, or expedited shipping of a debit card. These are not automatic charges—they only appear if you use those services. Investment fees also apply if you move HSA money into mutual funds or other investments through either account, though the fee structure differs between the two products.

The choice between them comes down to your balance and how you plan to use the account. If you keep $2,500 or more in the Bank of America HSA, the monthly fee disappears. If you prefer to avoid the maintenance fee entirely and do not need Bank of America's specific features, the Fidelity HSA costs nothing monthly.

Key Takeaways

  • Bank of America HSA charges $2.50 per month unless your balance stays at $2,500 or higher, which waives the fee.
  • Fidelity HSA, available through Bank of America, has no monthly maintenance fee at all.
  • Both accounts charge extra fees only when you use specific services like wire transfers, overdrafts, or investment transactions.
  • The monthly fee difference between the two accounts can add up to $30 per year if you choose the Bank of America HSA and fall below the minimum balance.

How the $2.50 monthly fee works and when it disappears

The $2.50 monthly maintenance fee on the Bank of America HSA is not a penalty—it is a standard account charge that Bank of America applies to cover the cost of maintaining the account. However, the fee is waived automatically if your account balance reaches the minimum threshold. Most Bank of America HSA accounts waive the fee at $2,500, though some account types may have different minimums, so you should check your specific account terms.

This means if you contribute to your HSA and keep the balance above $2,500, you pay nothing monthly. If your balance drops below that amount—because you withdrew money for medical expenses or did not contribute that year—the $2.50 charge begins again the following month. The fee is deducted directly from your HSA balance, so it reduces the amount you have available to spend or invest.

Over a year, if you stay below the minimum balance, the monthly fee totals $30. That may seem small, but it compounds: $30 per year over ten years is $300 in fees that could have remained in your account earning interest or available for medical expenses.

Comparing Bank of America HSA and Fidelity HSA fees

Bank of America offers two distinct HSA products, and the fee structure is the main difference between them. The Bank of America HSA charges the $2.50 monthly maintenance fee (waived at $2,500+), while the Fidelity HSA charges no monthly fee at all. If you are deciding between the two and your balance will stay under $2,500, Fidelity is the clear choice financially.

However, the monthly fee is not the only cost to consider. Both accounts charge fees for specific transactions: wire transfers typically cost $15 to $25, stop payments cost around $30, and overdraft fees apply if you overdraw the account. Investment fees also differ. If you invest your HSA balance in mutual funds or other securities, the Bank of America HSA may charge transaction fees, while Fidelity typically offers lower-cost or no-fee investment options through their platform.

The choice also depends on features beyond fees. Bank of America HSA integrates with your Bank of America checking account and debit card, which some people find convenient. Fidelity HSA offers more investment options and is designed for people who want to grow their HSA balance over time rather than spend it immediately. If you plan to invest your HSA money, Fidelity's fee structure and investment options often make it the better choice.

Transaction fees that apply to both accounts

Beyond the monthly maintenance fee, both the Bank of America HSA and Fidelity HSA charge fees when you perform certain transactions. These are not automatic—you only pay them if you use the service. Common transaction fees include wire transfers ($15 to $25), stop payments ($30), and expedited card replacement ($15). Overdraft fees apply if your account balance goes negative, typically $35 per overdraft.

ATM fees may also apply if you withdraw cash from an out-of-network ATM. Bank of America does not charge its own customers for using Bank of America ATMs, but using another bank's ATM usually costs $2 to $3. Fidelity reimburses out-of-network ATM fees up to a certain amount each month, which is an advantage if you travel or do not have easy access to Fidelity ATMs.

Most people never encounter these fees because they do not use those services. If you pay for medical expenses with your HSA debit card or transfer money once a year, you will not see any transaction charges. The fees exist for specific situations, so review your account activity to understand which ones might apply to you.

Investment fees if you invest your HSA balance

If you move money from your HSA into investments—mutual funds, stocks, or other securities—both accounts charge fees related to those investments. These are separate from the monthly maintenance fee and transaction fees. The Bank of America HSA charges transaction fees when you buy or sell investments, and you also pay the expense ratios of any mutual funds you hold (the annual cost of owning that fund, expressed as a percentage of your balance).

Fidelity HSA typically offers lower investment costs. Fidelity has a large selection of no-transaction-fee mutual funds and exchange-traded funds (ETFs), which means you can buy and sell investments without paying a per-trade fee. You still pay the expense ratio of the fund itself, but Fidelity's funds often have lower expense ratios than Bank of America's options.

If you plan to keep your HSA as a savings account and not invest it, these fees do not apply. Many people use their HSA as a spending account for current medical expenses and never touch the investment features. But if you want to grow your HSA balance over time by investing, Fidelity's fee structure is usually more favorable.

How to avoid or minimize HSA fees at Bank of America

The simplest way to avoid the $2.50 monthly fee is to keep your Bank of America HSA balance at $2,500 or higher. If you contribute regularly to your HSA through payroll deductions or annual contributions, this is often easy to do. Many people contribute $3,000 to $4,000 per year, which means the balance naturally stays above the minimum.

If your balance tends to stay below $2,500, switch to the Fidelity HSA instead. There is no monthly fee, and you can move your existing Bank of America HSA balance to Fidelity without tax consequences—it is a direct transfer between HSA accounts. The process takes a few weeks, but it is straightforward and costs nothing.

To minimize transaction fees, use your HSA debit card for medical expenses rather than withdrawing cash or making wire transfers. Pay for prescriptions, copays, and medical supplies directly with the card, and you avoid ATM fees and wire transfer charges. If you do need to move money, use ACH transfers (electronic transfers between bank accounts) instead of wire transfers—they are usually free or cost less.

Frequently Asked Questions

Can I switch from Bank of America HSA to Fidelity HSA without losing money?

Yes. You can transfer your entire Bank of America HSA balance to Fidelity HSA through a direct trustee-to-trustee transfer. This is not a taxable event, and you do not lose any money in the process. The transfer takes two to four weeks. Contact Fidelity to initiate the transfer, and they will handle the paperwork with Bank of America.

Does the $2.50 monthly fee apply if I do not use my HSA?

Yes, if your balance is below $2,500. The monthly maintenance fee is charged as long as the account is open and the balance stays below the minimum, regardless of whether you make any transactions. If you are not using your HSA, consider closing it or transferring it to Fidelity to avoid the fee.

What happens if my balance drops below $2,500 after the fee is waived?

The $2.50 monthly fee resumes the following month. If you withdraw money for medical expenses and your balance falls below $2,500, the fee will be deducted from your account starting the next billing cycle. You can avoid this by making another contribution to bring the balance back above $2,500.

Are there any other hidden fees I should know about?

No hidden fees, but there are fees you might not expect: overdraft fees ($35), out-of-network ATM fees ($2 to $3), and investment transaction fees if you buy or sell mutual funds. Read your account agreement or call Bank of America to confirm the exact fees that apply to your specific account type.

Does Fidelity HSA have any fees at all?

Fidelity HSA has no monthly maintenance fee and no transaction fees for most activities. You only pay investment expense ratios if you invest your HSA balance in mutual funds or ETFs, which is the same as any investment account. If you keep your HSA as cash, there are no fees.