But according to the latest HSA trends report by Devenir Research, most people aren’t making the most of these valuable accounts. For every 10 dollars contributed in an HSA, about seven are withdrawn in the same year. Also, only about $6.8 billion of HSA assets (less than 16 percent) are held in accounts where they can be invested for growth. Instead, almost 85 percent of HSA assets are held in HSA bank accounts which pay very low interest rates.
Why is this such a big deal? Due to much better long-term growth rates, the average HSA investment account balance is about $15,150, which is over six times more than the average HSA bank account balance.