Top 11 Health Savings Accounts Rated by Morningstar

Health savings accounts

Image credit: © Zolak Zolak | Dreamstime.com

Fidelity once again reigns in Morningstar’s latest assessment of the country’s top health savings account offerings.

The Boston-based investment behemoth continues to stand well above its peers, with a high overall investment account assessment, comprised of high assessments in the price and investment threshold categories and above-average assessments in menu design and quality of investments.

Morningstar evaluated 11 of the most prominent HSA providers for two different use cases: as an investment account to save for future medical expenses and as a spending account to cover current medical costs. This year’s study found the best HSA provider for investors is Fidelity, and the best HSA providers for spenders are Fidelity and Lively.

The Chicago-based research firm said providers made progress over the past year by cutting fees, streamlining investment menus, and offering higher-quality funds, yet there’s still room for improvement.

Despite cuts, fees vary across providers and by account balance; most require individuals to keep money in spending accounts before they can invest, and fund lineups still hold redundant and niche options that can be difficult to understand.

“There is limited transparency around HSAs and their associated fees, especially when investors are looking to open an account that is not through their employer,” Megan Pacholok, lead author of the study and manager research analyst, said in a statement. “Since we first introduced our HSA assessments five years ago, we’ve seen providers improve their offerings by cutting fees and simplifying investment menus. As HSAs continue to evolve, it is important for providers to continue to be more transparent, include strong investment options, and keep costs low.”

What they found

HSA ProviderOverall Assessment as
Investing Account
Overall Assessment as  Spending Account
Associated BankAbove AverageAverage
Bank of AmericaAbove AverageBelow Average
BendAverageAverage
FidelityHighHigh
HealthEquityAverageHigh
HealthSavingsAverageBelow Average
HSA Bank*AverageHigh
LivelyAverageHigh
OptumBelow AverageAverage
PayFlexBelow AverageBelow Average
The HSA AuthorityAverageHigh
Exit mobile version