Where to open an HSA: the main options

You can open an HSA through a bank, a credit union, an investment firm, or an insurance company—but not every institution offers them. The most common route is your current bank: most large national banks (Chase, Bank of America, Wells Fargo, Citibank) offer HSAs, as do many regional banks and credit unions. Some people open an HSA through their health insurance company or their employer's benefits administrator, who may partner with a specific financial institution. Others choose a dedicated HSA provider like HealthEquity, Lively, or Fidelity, which specializes in these accounts and often charges lower fees.

The institution you choose matters because HSAs vary in fees, investment options, and ease of use. A bank HSA might have a monthly maintenance fee but offer the simplicity of managing it alongside your checking account. An investment-focused HSA provider might charge nothing monthly but require you to invest your balance rather than keep it in cash. Your employer may have already chosen a provider for you—check your benefits paperwork before opening your own.

Key Takeaways

  • Large national banks, regional banks, and credit unions all offer HSAs, though not every branch or account type includes one.
  • Your employer's benefits plan may already partner with a specific HSA provider, so check before opening an account elsewhere.
  • Dedicated HSA providers like HealthEquity and Fidelity often have lower or no monthly fees but may require you to invest your balance.
  • Compare monthly fees, debit card costs, investment options, and customer service before choosing where to open your account.
  • You can move your HSA to a different institution later, though the process takes a few weeks and may involve paperwork.

Major banks that offer HSAs

Chase, Bank of America, Wells Fargo, and Citibank all offer HSAs to customers who meet their requirements. Chase's HSA is available through some employer plans and directly to individuals; it includes a debit card and online access but typically charges a monthly maintenance fee (the amount varies by account type and region). Bank of America offers HSAs through employer plans and has partnered with certain HSA administrators, though direct individual accounts are less common. Wells Fargo and Citibank similarly offer HSAs, often bundled with employer benefits rather than as standalone products.

The catch with bank HSAs is that fees can add up. Monthly maintenance fees range from $2 to $5 depending on the bank and whether you meet balance minimums. Some banks waive fees if you maintain a certain balance or set up direct deposit. Debit card fees (for replacement cards or out-of-network ATM use) may apply. Before opening an HSA at your bank, ask specifically about all fees and whether they apply to your account type.

Credit unions and regional banks

Many credit unions offer HSAs to their members, often with lower fees than national banks. Institutions like Navy Federal Credit Union, Alliant Credit Union, and Connexus Credit Union have HSA products. Regional banks—depending on your location—may also offer them. Credit unions sometimes charge no monthly maintenance fee or waive it for members who maintain a minimum balance or use direct deposit.

The advantage of a credit union HSA is often lower cost and more personalized service. The disadvantage is that credit union HSAs may have fewer investment options than larger institutions, and you may not be able to access your account as easily if you travel or move out of the credit union's service area. Check whether the credit union offers online and mobile access, and whether you can use their ATM network or partner networks nationwide.

Insurance companies and employer-sponsored HSA providers

If you have a high-deductible health plan (HDHP), your insurance company may offer an HSA directly or partner with a specific HSA administrator. UnitedHealthcare, Aetna, Cigna, and Anthem all have HSA offerings tied to their health plans. When you enroll in an HDHP through your employer, the benefits administrator often selects the HSA provider for you—you do not choose. This can be convenient because contributions may be deducted directly from your paycheck, and customer service is integrated with your health plan.

The downside is that you have no choice in provider if your employer has already selected one. If the provider charges high fees or offers poor investment options, you can transfer your HSA to a different institution later—a process called a trustee-to-trustee transfer. This takes two to four weeks and requires paperwork from both the old and new providers, but it is free and does not count as a withdrawal.

Dedicated HSA providers: lower fees, more control

Dedicated HSA providers like HealthEquity, Lively (owned by Embark), Fidelity, and Optum Bank specialize in HSAs and often charge no monthly maintenance fee. HealthEquity is one of the largest independent HSA custodians and offers investment options, a debit card, and mobile access. Lively charges no monthly fee and partners with Evolve Bank to hold the account. Fidelity offers HSAs with no monthly fee and extensive investment options if you want to grow your balance beyond cash. Optum Bank (part of UnitedHealth Group) offers HSAs with no monthly fee and integrates with UnitedHealthcare plans.

These providers make money from investment management fees or interchange fees on debit card transactions, not from charging you directly. This model works well if you plan to keep your HSA long-term and invest the balance, or if you simply want to avoid monthly fees. However, some dedicated providers require a minimum balance to avoid fees, or charge a fee if your balance drops below a threshold. Read the fee schedule carefully before opening an account.

How to compare HSA providers

Start by checking whether your employer has already chosen a provider for you. If so, you can open an account there with no decision to make. If you are choosing on your own, compare these factors: monthly maintenance fees (some charge $0, others $2–$5), debit card replacement fees, out-of-network ATM fees, minimum balance requirements, and investment options. If you plan to invest your HSA balance, look at the fund choices and expense ratios. If you plan to keep your balance in cash, prioritize low fees and easy access.

Also check customer service availability—whether you can reach someone by phone, email, or chat, and during what hours. Read reviews from current users about how easy it is to use the debit card, make transfers, and access your account online or on mobile. Some providers are known for excellent customer service; others have poor reputations for slow transfers or confusing interfaces. Spend 15 minutes comparing two or three providers before committing.

Moving your HSA to a different provider

You are not locked into your current HSA provider. If you open an account with one bank and later want to move to another, you can do so through a trustee-to-trustee transfer. Contact the new provider and ask them to initiate the transfer. They will send paperwork to your current provider requesting that all funds be moved directly to the new account. This process takes two to four weeks and is free—the money does not pass through your hands, so it does not count as a withdrawal and does not trigger taxes or penalties.

A trustee-to-trustee transfer is different from a withdrawal. If you withdraw money from your HSA and try to deposit it yourself into a new account, the IRS treats it as a taxable distribution. Always ask your new provider to handle the transfer directly. Keep copies of all paperwork confirming the transfer was completed, in case there are questions later.

Frequently Asked Questions

Can I open an HSA at any bank?

No. While most large banks offer HSAs, not every branch or account type includes one. Call your bank's customer service line and ask specifically whether they offer HSAs. If they do not, you can open one at a credit union, insurance company, or dedicated HSA provider instead.

What if my employer chose an HSA provider I do not like?

You can transfer your HSA to a different provider at any time through a trustee-to-trustee transfer. The process takes two to four weeks and is free. Contact the new provider and they will handle the paperwork. You can also keep your employer's HSA open and open a second HSA elsewhere, though you cannot exceed the annual contribution limit across all accounts combined.

Do I have to invest my HSA balance, or can I keep it in cash?

You can keep your balance in cash. Most banks and HSA providers offer a cash option (sometimes called a savings sweep or money market option) that earns a small amount of interest. Investment options are available if you want them, but they are not required. Ask your provider what cash options they offer and what interest rate they pay.

Are there fees if I do not use my HSA?

Some providers charge a monthly maintenance fee whether you use the account or not. Others charge no monthly fee but may charge a fee if your balance falls below a minimum (often $1,000 or $2,500). Check your provider's fee schedule. If fees are high and you are not using the account, consider transferring to a no-fee provider.

Can I use my HSA debit card anywhere?

Your HSA debit card can only be used for may have access to medical expenses—the merchant category codes are restricted. If you try to use it for groceries or gas, the transaction will be declined. You can withdraw cash from an ATM and use it for anything, but that cash is no longer HSA money and does not get the tax benefit. Use the debit card only for medical, dental, vision, and pharmacy purchases.