FDIC Insured
Federal deposit insurance that protects your HSA cash balance up to $250,000 if your bank fails.
What is FDIC Insured?
FDIC insurance protects the cash portion of your HSA held at FDIC-member banks. If the bank fails, the Federal Deposit Insurance Corporation insures your deposits up to $250,000.
This protection only applies to cash deposits, not investments. If you invest your HSA in mutual funds or stocks, those aren't FDIC insured (though they may have SIPC protection for the securities themselves).
Most HSA custodians that are banks offer FDIC insurance. Credit union HSAs may have similar protection through NCUA. Always verify your custodian's insurance status, especially for larger balances.
Frequently Asked Questions
Is my entire HSA FDIC insured?
Only the cash portion at an FDIC-member bank, up to $250,000. Investments aren't FDIC insured.
What if my HSA is at a credit union?
Credit unions offer similar protection through NCUA (National Credit Union Administration) insurance, also up to $250,000.
Are HSA investments protected?
Not by FDIC. Securities may be protected by SIPC (up to $500,000) if your custodian is a member, but that protects against broker failure, not investment losses.
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