Devenir, as part of our continued monitoring of the health savings account (HSA) marketplace, has been tracking HSA deposit rates. The effective federal funds rate has dropped dramatically due to the financial crisis brought on by the COVID-19 pandemic. When we first reported on deposit rates in 2020, on April 16th, we saw providers react quickly to the downward pressure of the Federal Reserve by lowering their rates. This shift reversed a previous trend that was characterized by almost no changes in average HSA deposit rates when the Fed was slowly raising rates during the previous economic expansion (see August 2018 – August 2019 below). Since our last update, average deposit rates for the top 20 HSA providers in the marketplace have remained fairly steady with only a slight decline for both the one-thousand and ten-thousand dollar balance levels.
We continue to remain interested in the health savings account marketplace and we look forward to sharing new insights! If you wish to see more HSA marketplace news, subscribe to our monthly newsletter below.
Note: Data above represents Devenir’s assessment on readily available public data, for specific interest rates that apply to your HSA, please contact your HSA provider.