Open enrollment is upon us, and that means most employers have already reviewed their health benefits for 2019. Those offering an HSA eligible health plan have likely settled on an HSA provider for their employee HSA. Considerations like fees and user experience are increasingly factoring into the decision, while other aspects of the account like the deposit interest rate can be influential as well.
In an effort to understand industry trends, we periodically research publicly listed interest rates offered by HSA providers. Recent averages suggest providers may not be feeling much pressure to raise HSA deposit rates, with the largest providers feeling even less pressure as they focus on creating account value through other means.
Source: Devenir Research, FRED Economic Database
HSA providers have kept deposit interest rates on small balances relatively stable since the Federal Reserve began hiking rates. Larger balances have seen more variation compared to smaller balances, albeit small increases.
Source: Devenir Research, FRED Economic Database
We continue to be interested in HSA deposit rates and look forward to sharing new insights!
Note: Data above represents Devenir’s assessment on readily available data, for specific interest rates that apply to your HSA, contact your HSA provider.