Assets in funded health savings accounts at Fidelity surpassed $10 billion, the company announced on Monday. The number of accounts increased by 19% last year to 1.76 million. Total assets increased 52% to $10.2 billion. Account holders who are using their HSA to invest also grew, increasing 42%, according to Fidelity.
“Whether it’s at home taking care of a family, traveling to a workplace as an essential worker, or operating at a makeshift desk at home—we have all been working hard this year. And with two things top of mind—our health and our finances—it is increasingly important that our money works just as hard,” Begonya Klumb, Head of Health Savings Accounts at Fidelity Investments, said in a statement. “We are thrilled to see more HSA customers investing their money to help it potentially grow. We continue to educate on this benefit, as this is the industry’s ‘secret power’ in managing healthcare expenses.”
Related: How to Maximize HSA Value for Retirees
Jim MacDonald, Head of the Health Care Group at Fidelity Investments, added that “The pandemic has further solidified the undeniable connection between a person’s health and their finances. People are most secure when they are both financially stable and feel confident to manage a potential health-related issue.”
Fidelity is focusing on digital health benefits, MacDonald said. “From our industry-leading health savings accounts to expanding and piloting new offerings, we help individuals manage expenses, plan for retirement costs, and navigate health events at all stages of their lives,” he noted.
One of those new offerings is the Fidelity Health App. The app lets employees track their healthcare expenses, and manage their HSA and flexible spending accounts. The app is currently in a pilot stage and is expected to be available for iOS and Android this winter.
“The Fidelity Health App is just one way we’re investing in our digital capabilities and creating personalized experiences—giving our employer clients the digital healthcare benefits their employees expect and demand so they can better navigate their healthcare journey,” Tom McCarthy, Head of Digital Health Experience at Fidelity, said in the statement. “Data-driven insights inform our strategy to enhance the customer’s experience managing healthcare costs and benefits.”
Fidelity has introduced several new features to make HSAs more valuable to account holders, including:
- Contribution advances, so they can access their annual contributions on the first day of the year.
- A digital interface to simplifies the fund selection process.
- Fractional share trading so account holders can invest small amounts in their HSAs.
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Danielle Andrus works as an editor for The Financial Planning Association® (FPA®). Over the past 15 years, she has worked in various capacities, including writing and editing. Andrus has worked for several notable publications and outlets and spent more than seven years as the executive managing editor at ALM Media, publisher of Investment Advisor magazine and ThinkAdvisor.com. Before that, she was online editor for Summit Professional Networks, where she oversaw newsletter development for four magazines, including Benefits Selling, Senior Market Advisor, Boomer Market Advisor, and Bank Advisor.
