As we enter the second half of 2024, Health Savings Account (HSA) interest rates continue their upward trajectory, with increases across all balance tiers. As of June 30th, the average rate for $1,000 balances reached 0.44%, up from 0.42% in December 2023. More substantial gains are seen in higher balances, with $10,000 accounts now averaging 0.55% (up from 0.52%) and $50,000 balances hitting 0.62% (up from 0.57%).
These increases, despite a steady federal funds rate, reflect ongoing competition among HSA providers. The persistent upward trend and widening spread between low and high balance tiers (now 18 basis points from $1,000 to $50,000) underscore the industry’s focus on account growth and high-value customer retention.
For context, the asset-weighted seven-day yield of government money market funds stood at 5.38% as of May 2024, highlighting the broader high-yield environment that HSA providers are operating within.
We will continue to monitor HSA deposit rates throughout the industry and look forward to sharing these insights in future updates.
Note: Data above represents Devenir’s assessment of readily available public data. For specific interest rates that apply to your HSA, please contact your HSA provider.
References
- U.S Securities and Exchange Commission. 2024. “Money Market Fund Statistics”.
https://www.sec.gov/files/investment/mmf-statistics-2024-05.pdf