Morningstar ranked 11 of the largest Health Savings Account (HSA) providers in 2 categories:

  1. HSAs as a spending account to cover current medical costs.
  2. HSAs as an investment account to save for future medical expenses.
(All photos: Shutterstock)

11. HEALTH SAVINGS ADMINISTRATORS

As spending accounts: Overall assessment: Negative (1 point, ranked 11 out of 11) │ Maintenance fees: Negative (1 point) │ Interest rates: Neutral (0 points) │ Additional fees: Neutral (Upgraded since last year)

As investing accounts: Overall assessment: Neutral (8 points, ranked 5 out of 10) │ Menu design: Negative (1 point) │ Quality of investments: Positive (3 points, upgraded since last year) │ Price: Neutral (4 points) │ Performance: Positive │ Investment threshold: Positive

10. FURTHER.

As spending accounts: Overall assessment: Negative (1 point, ranked 10 out of 11) │ Maintenance fees: Negative (1 point) │ Interest rates: Neutral (0 points) │ Additional fees: Positive

As investing accounts: Overall assessment: Neutral (8 points, ranked 4 out of 10, downgraded since last year) │ Menu design: Neutral (2 points, downgraded since last year) │ Quality of investments: Positive (3 points, upgraded since last year) │ Price: Neutral (4 points, downgraded since last year) │ Performance: Positive │ Investment threshold: Neutral (-1 point)

9. BANK OF AMERICA.

As spending accounts: Overall assessment: Negative (1 point, ranked 9 out of 11) │ Maintenance fees: Negative (1 point) │ Interest rates: Neutral (0 points) │ Additional fees: Positive

As investing accounts: Overall assessment: Positive (10 points, ranked 3 out of 10) │ Menu design: Neutral (2 points, downgraded since last year) │ Quality of investments: Positive (3 points, upgraded since last year) │ Price: Positive (6 points) │ Performance: Positive │ Investment threshold: Neutral (-1 point)

8. FIFTH THIRD.

As spending accounts: Overall assessment: Neutral (2 points, ranked 8 out of 11) │ Maintenance fees: Neutral (2 points) │ Interest rates: Neutral (0 points; downgraded since last year) │ Additional fees: Neutral (upgraded since last year)

As investing accounts: Overall assessment: Negative (6 points, ranked 8 out of 10; downgraded since last year) │ Menu design: Positive (3 points) │ Quality of investments: Positive (3 points) │ Price: Negative (2 points; downgraded since last year) │ Performance: Positive │ Investment threshold: Negative (-2 points)

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7. UMB BANK.

As spending accounts: Overall assessment: Neutral (2 points, ranked 7 out of 11) │ Maintenance fees: Neutral (2 points) │ Interest rates: Neutral (0 points) │ Additional fees: Neutral (upgraded since last year)

As investing accounts: Overall assessment: Negative (7 points, ranked 7 out of 10; downgraded since last year) │ Menu design: Positive (3 points) │ Quality of investments: Positive (3 points) │ Price: Negative (2 points; downgraded since last year) │ Performance: Positive │ Investment threshold: Neutral (-1 point)

6. OPTUM.

As spending accounts: Overall assessment: Neutral (2 points, ranked 6 out of 11) │ Maintenance fees: Neutral (2 points) │ Interest rates: Neutral (0 points) │ Additional fees: Neutral (downgraded since last year)

As investing accounts: Overall assessment: Negative (5 points, ranked 10 out of 10; downgraded since last year) │ Menu design: Neutral (2 points; downgraded since last year) │ Quality of investments: Positive (3 points) │ Price: Negative (2 points; downgraded since last year) │ Performance: Positive │ Investment threshold: Negative (-2 points)

5. HSA BANK.

As spending accounts: Overall assessment: Neutral (2 points, ranked 5 out of 11) │ Maintenance fees: Neutral (2 points) │ Interest rates: Neutral (0 points) │ Additional fees: Neutral

As investing accounts: Overall assessment: Negative (6 points, ranked 9 out of 10) │ Menu design: Neutral (2 points; downgraded since last year) │ Quality of investments: Positive (3 points) │ Price: Negative (2 points) │ Performance: Positive │ Investment threshold: Neutral (-1 point)

4. HealthEquity.

As spending accounts: Overall assessment: Neutral (2 points, ranked 4 out of 11) │ Maintenance fees: Neutral (2 points) │ Interest rates: Neutral (0 points) │ Additional fees: Neutral

As investing accounts: Overall assessment: Neutral (7 points, ranked 6 out of 10; upgraded since last year) │ Menu design: Neutral (2 points; downgraded since last year) │ Quality of investments: Positive (3 points) │ Price: Neutral (4 points; upgraded since last year) │ Performance: Positive │ Investment threshold: Negative (-2 points)

3. THE HSA AUTHORITY.

As spending accounts: Overall assessment: Positive (3 points, ranked 3 out of 11) │ Maintenance fees: Positive (3 points) │ Interest rates: Neutral (0 points) │ Additional fees: Negative

As investing accounts: Overall assessment: Positive (10 points, ranked 2 out of 10) │ Menu design: Negative (1 point; downgraded since last year) │ Quality of investments: Positive (3 points) │ Price: Positive (6 points │ Performance: Positive │ Investment threshold: Neutral (-1 point)

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2. LIVELY.

As spending accounts: Overall assessment: Positive (3 points, ranked 2 out of 11) │ Maintenance fees: Positive (3 points) │ Interest rates: Neutral (0 points) │ Additional fees: Positive

Not ranked as investment accounts

1. FIDELITY.

As spending accounts: Overall assessment: Positive (4 points, ranked 1 out of 11) │ Maintenance fees: Positive (3 points) │ Interest rates: Positive (1 point) │ Additional fees: Positive

As investing accounts: Overall assessment: Positive (11 points, ranked 1 out of 10) │ Menu design: Neutral (2 points) │ Quality of investments: Positive (3 points) │ Price: Positive (6 points │ Performance: Positive │ Investment threshold: Positive

(Related: 12 Cheapest States for a Comfortable Retirement: 2019)

As health savings accounts have grown in use, now accounting for more than $60 billion in assets, Morningstar decided to take a look at the 11 largest HSA providers as a means of helping investors choose the best one for their needs.

According to Morningstar, these rankings “represent the best choices for individuals as opposed to employers, where fees are often negotiable based on a number of factors.”

The providers were ranked for two separate categories: HSAs as a spending account to cover current medical costs, and HSAs as an investment account to save for future medical expenses.

While HSAs have come a long way, there’s still plenty of room for improvement. In fact, says Morningstar, “Only one provider earns positive marks across the board as a spending account, and none meet that standard as an investing account.”

In addition, there are pervasive issues with transparency, fees vary widely, and investors are usually stuck having to keep money in the checking account before they can invest.