As we move into the final quarter of 2024, Health Savings Account (HSA) interest rates have continued their modest ascent across all balance tiers. As of September 30th, the average rate for $1,000 balances reached 0.45%, slightly up from 0.44% in June 2024. Higher balance accounts have also seen incremental increases, with $10,000 balances now averaging 0.56% (up from 0.55%) and $50,000 balances at 0.63% (up from 0.62%).
These subtle rate hikes occur against a backdrop of a declining federal funds rate1, which decreased to 4.83% as of September 30, 2024 from 5.33% last month. Despite this dip, the upward movement in HSA deposit rates suggests that providers remain committed to attracting and retaining account holders through competitive interest offerings.
The spread between the rates offered for $1,000 and $50,000 balances remains steady at 18 basis points.
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 information. For specific interest rates applicable to your HSA, please contact your HSA provider
References
- Federal Reserve Bank of New York, Effective Federal Funds Rate [EFFR], retrieved from FRED, Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/EFFR, October 1, 2024.