Question 1

Which HSA provider has lower fees, HealthEquity or Fidelity?

Accepted Answer

Fidelity has a clear fee advantage. Fidelity states there are zero account fees and zero account minimums for HSAs opened directly through Fidelity.com. HealthEquity's fee structure is more complex. They report an investment fee of 0.03% per month, capped at $10 per month on some plans. While maintenance fees are eliminated for some accounts, investment and administrative charges often still apply, especially in employer-sponsored plans.

Question 2

What are the investment minimums for HealthEquity and Fidelity HSAs?

Accepted Answer

Investment minimums are a major differentiator. Fidelity has no minimum balance to start investing; you can buy fractional shares of many funds with any dollar amount. HealthEquity's thresholds vary. For direct-to-consumer accounts, a $500 minimum is commonly reported. However, within employer-sponsored plans, the investment threshold can range from $0 to $2,500, depending on your specific employer's agreement.

Question 3

Can I earn interest on my HSA cash balance with these providers?

Accepted Answer

Yes, but the rates differ significantly, which matters if you keep a large cash reserve for near-term medical expenses. As of April 2026, Fidelity's default money-market cash reserve yield was posted at 3.37%. Their sweep program APYs can be as low as 0.02% to 0.10%. HealthEquity's cash APY, based on one comparison, ranges from 0.05% to 0.30%. For a cash balance of $5,000, the difference between a 3.37% yield and a 0.

Question 4

Are there fees to transfer money out of a HealthEquity or Fidelity HSA?

Accepted Answer

Transfer fees are another cost to consider. Fidelity typically charges $0 for outgoing transfers, though a $25 account closing fee may apply in some cases. HealthEquity, for some plans since November 2024, may charge $25 per partial transfer. A partial transfer moves some funds while keeping the account open, which is a common strategy for regularly moving invested funds to a lower-cost provider like Fidelity.

Question 5

My employer uses HealthEquity. Should I switch to Fidelity?

Accepted Answer

This depends on your balance and investment goals. If your employer contributes to your HealthEquity HSA, you should keep that account open to receive those funds. However, you can perform a trustee-to-trustee transfer to Fidelity periodically. This strategy lets you capture employer contributions in HealthEquity, then move the funds to Fidelity's lower-fee environment to invest. Be mindful of HealthEquity's potential $25 partial transfer fee.

Question 6

How do the investment fund choices compare between HealthEquity and Fidelity?

Accepted Answer

Fidelity offers a vastly broader and more flexible investment menu. You have access to Fidelity's full brokerage platform, including their own low-cost index funds (like FZROX with zero expense ratio), ETFs, and individual stocks. HealthEquity's investment menu is typically more limited, often consisting of a curated list of mutual funds. This restrictive menu, combined with their investment fees, creates a higher cost structure.

Question 7

What happens to my HSA if I leave my job and my employer used HealthEquity?

Accepted Answer

Your HSA is your account, so it remains open. However, the fee structure may change. Employer-sponsored HealthEquity accounts often have fees subsidized by the employer. When you leave, you may become responsible for any monthly maintenance or investment fees that were previously waived. At this point, it becomes especially attractive to transfer the entire balance to a provider like Fidelity, which charges no account fees regardless of employment status.

Question 8

Is one provider better for beginners, HealthEquity or Fidelity?

Accepted Answer

For a complete beginner who is not yet investing, the employer-default provider (often HealthEquity) is fine for holding contributions. But for a beginner who wants to start investing HSA funds, Fidelity is simpler and less intimidating. The lack of an investment minimum means you can start with $50. The absence of complex tiered fees means you won't face surprise charges. Fidelity's educational resources and straightforward platform lower the barrier to entry.

Question 9

Does Fidelity really have no monthly or annual HSA fees?

Accepted Answer

Yes, for HSAs opened directly through Fidelity.com, the company states there are zero account fees and zero minimums. This includes no opening fee, no monthly maintenance fee, and no annual custodial fee. This is a core part of their value proposition and a major differentiator from many other providers, including HealthEquity.

Question 10

What is HealthEquity's 0.03% monthly investment fee?

Accepted Answer

HealthEquity charges an investment fee calculated as 0.03% of your invested balance each month. This fee is often capped at $10 per month on certain plans. On an annualized basis, this equates to a 0.36% fee on your invested assets. For a $20,000 invested balance, you'd pay about $72 per year, while Fidelity would charge $0 for the same balance.

Question 11

Are there fees just to have the HSA account open with HealthEquity?

Accepted Answer

It depends entirely on your employer's plan. Many employer plans subsidize or eliminate the basic account maintenance fee. However, for individual accounts or after leaving an employer, monthly maintenance fees can apply. You must review your HealthEquity plan's fee schedule, as these administrative fees can vary widely and are separate from the investment fee.

Question 12

What is the $25 transfer fee for HealthEquity?

Accepted Answer

For some HealthEquity plans, a $25 fee is charged for each partial trustee-to-trustee transfer. A partial transfer moves some funds to another HSA provider while leaving your HealthEquity account open. This fee was implemented in November 2024 for certain plans. A full transfer, which closes the account, may have a different fee or none at all. Always verify with your specific plan.

Question 13

How do fees impact long term HSA growth?

Accepted Answer

Fees have a direct and compounding negative effect on growth. An extra 0.36% in annual fees (like HealthEquity's investment fee) on a $50,000 balance invested over 20 years could reduce your ending balance by thousands of dollars. Choosing a provider with minimal fees, like Fidelity, ensures more of your money stays invested and compounds for future healthcare needs or retirement.

Question 14

Can I start investing with $100 in my Fidelity HSA?

Accepted Answer

Yes. Fidelity has no minimum to start investing. You can invest any amount into thousands of available securities, including fractional shares of many stocks and ETFs. This makes it easy for beginners or those with smaller balances to begin investing immediately, without waiting to reach a specific threshold.

Question 15

Why does HealthEquity have an investment threshold?

Accepted Answer

HealthEquity's investment threshold, which can be $500, $1,000, or more, is a common feature among older HSA custodians. It is designed to cover administrative costs associated with managing the brokerage window. This structure can disadvantage savers with smaller balances, as their funds must sit in low-yield cash until the threshold is met, delaying potential market growth.

Question 16

What kind of investment options does Fidelity offer?

Accepted Answer

Fidelity offers its full brokerage platform. This includes Fidelity's own suite of zero-expense-ratio index funds (FZROX, FNILX, etc.), a wide array of other mutual funds, all ETFs traded on major exchanges, individual stocks, and bonds. This open access allows for sophisticated portfolio construction, from simple three-fund portfolios to complex strategies, all within the tax-advantaged HSA wrapper.

Question 17

Is HealthEquity's investment menu limited?

Accepted Answer

Typically, yes. HealthEquity usually provides a pre-selected menu of mutual funds. While this menu may include some reputable index funds, the selection is far narrower than a full brokerage. This limitation, combined with the added investment fee, makes it less ideal for investors who want control, lowest-cost options, or specific asset allocations.

Question 18

Should I invest my entire HSA balance?

Accepted Answer

Not necessarily. A common strategy is to keep an amount equal to your annual insurance deductible in cash or a stable value fund for immediate medical needs. Any funds beyond that can be invested for long-term growth. This approach balances liquidity for near-term expenses with the growth potential for future costs. Both Fidelity and HealthEquity allow you to split your balance between cash and investments.

Question 19

How do I transfer funds from HealthEquity to Fidelity?

Accepted Answer

Open an HSA at Fidelity. Then, within the Fidelity account, initiate a 'Transfer an Account' process. You will provide your HealthEquity account details. Fidelity will handle the trustee-to-trustee transfer. Do not request a check distribution to yourself, as that can have tax implications. Contact Fidelity's HSA team for specific guidance to ensure it's done correctly as a direct transfer.

Question 20

Can I have two HSA accounts open at once?

Accepted Answer

Yes, you can have multiple HSA accounts. However, your total contributions across all accounts must not exceed the annual limits ($4,400 self-only or $8,750 family in 2026). There is no limit on the number of accounts you own. Many people maintain an employer-sponsored account to receive payroll contributions and a separate self-directed account (like Fidelity) for investing transferred funds.

Question 21

What happens if my employer switches HSA providers?

Accepted Answer

If your employer moves from HealthEquity to another provider, your existing HealthEquity account remains yours. Future employer contributions will go to the new provider. You will then have two HSA accounts. You can choose to leave the old one open, consolidate it into the new employer account, or transfer it to a third-party provider like Fidelity. Evaluate the fees on the old account first.

Question 22

Is the Fidelity HSA user interface easy to use?

Accepted Answer

Fidelity's platform is generally considered robust and user-friendly, consistent with their other brokerage accounts. You can view your cash and investments, pay providers with a linked debit card or checkbook, and track contributions and distributions all in one place. HealthEquity's interface is functional but often reviewed as less intuitive, especially for investment management and tracking.

Question 23

How do I pay medical bills from my invested HSA funds?

Accepted Answer

With Fidelity, you can sell investments as needed to cover a bill. The cash from the sale settles in your core cash position, from which you can pay directly. With HealthEquity, you may need to first transfer funds from the investment account back to the cash account before spending, which can add a step. Both allow for reimbursement to your personal bank account after paying out-of-pocket.

healthequity vs fidelity hsa: Your Questions Answered

Fees and Costs

Investing Your HSA Funds

Account Management and Transfers

Summary

Pro Tips

Quick Answers