First American Bank vs HealthEquity

2026 side-by-side comparison of fees, investment options, and features.

First American Bank

Bank
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First American Bank offers a fee-free HSA for individuals with access to Vanguard mutual funds and a Schwab brokerage option. They've been recognized by Investor's Business Daily as one of the best HSA providers.

HealthEquity

Fintech
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HealthEquity is the largest non-bank HSA custodian with over 8 million accounts. They offer a curated lineup of low-cost Vanguard funds and strong employer integrations.

Quick Verdict

Choose First American Bank if...

Individual HSA holders who want a solid bank-based HSA with Vanguard funds

Choose HealthEquity if...

Employees with employer-sponsored HSAs who want solid Vanguard funds

Feature Comparison

FeatureFirst American BankHealthEquity
Monthly Fee$0 (individual accounts)$0 (maintenance fee eliminated)
Investment Minimum$1,000$500
Investment Options28 Vanguard mutual funds, Schwab brokerage23 low-cost Vanguard mutual funds
Interest Rate0.01%–0.35% APY (tiered)0.05%–0.30% APY (tiered)
Account Typebankfintech
FDIC InsuredYesYes
Mobile AppYesYes
Debit CardYesYes

First American Bank

Pros

  • No monthly maintenance fee for individuals
  • Strong Vanguard fund lineup including target-date funds
  • Schwab brokerage option (8,500+ investments)
  • Named to IBD Best HSAs list
  • FDIC insured

Cons

  • $2.95/month fee for investment account (HSA PLUS)
  • $1,000 threshold before investing
  • 0.30% annual investment custodial fee
  • Limited branch network (IL, FL, WI)

HealthEquity

Pros

  • Largest HSA administrator by accounts
  • Excellent low-cost Vanguard fund lineup
  • No maintenance fees
  • Strong employer integration
  • Monthly investment fee capped at $10

Cons

  • 0.033%/month investment admin fee (capped at $10)
  • $500 investment threshold
  • $25 fee for partial transfers (as of Nov 2025)
  • Fees add up at higher balances

Provider Details

First American Bank

First American Bank offers a fee-free HSA for individuals with access to Vanguard mutual funds and a Schwab brokerage option. They've been recognized by Investor's Business Daily as one of the best HSA providers.

Monthly Fee

$0 (individual accounts)

Investment Minimum

$1,000

Investment Options

28 Vanguard mutual funds, Schwab brokerage

Best For

Individual HSA holders who want a solid bank-based HSA with Vanguard funds

HealthEquity

HealthEquity is the largest non-bank HSA custodian with over 8 million accounts. They offer a curated lineup of low-cost Vanguard funds and strong employer integrations.

Monthly Fee

$0 (maintenance fee eliminated)

Investment Minimum

$500

Investment Options

23 low-cost Vanguard mutual funds

Best For

Employees with employer-sponsored HSAs who want solid Vanguard funds

Frequently Asked Questions

Which has lower fees, First American Bank or HealthEquity?

First American Bank charges $0 (individual accounts) per month, while HealthEquity charges $0 (maintenance fee eliminated). Compare total costs including investment fees before deciding.

Which has better investment options?

First American Bank offers 28 Vanguard mutual funds, Schwab brokerage. HealthEquity offers 23 low-cost Vanguard mutual funds. The best choice depends on your investment style and preferences.

Is my money FDIC insured with First American Bank or HealthEquity?

Both First American Bank and HealthEquity offer FDIC insurance on cash deposits, protecting up to $250,000 per depositor. Invested funds are not FDIC insured but may have SIPC protection.

Can I transfer my HSA from First American Bank to HealthEquity?

Yes, you can transfer your HSA funds between any HSA providers. Most transfers take 2-4 weeks. Check with both First American Bank and HealthEquity for any transfer fees - incoming transfers are usually free, but outgoing transfers may incur a fee.

Which HSA is better for long-term investing?

For long-term investing, consider HealthEquity with $500 investment minimum. First American Bank is individual hsa holders who want a solid bank-based hsa with vanguard funds. HealthEquity is employees with employer-sponsored hsas who want solid vanguard funds. Both can work well for building retirement health savings.

Does HSA Trackr work with First American Bank and HealthEquity?

Yes, HSA Trackr works with any HSA provider including both First American Bank and HealthEquity. Track your medical expenses, store receipts, and know exactly how much you can reimburse tax-free - regardless of which HSA you choose.

Related Comparisons

This comparison is for informational purposes only. HSA provider features and fees may change. Verify current information directly with each provider before opening an account.

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