Research

HSA Deposit Rate Update – June 2024

July 16, 2024 Research
As we enter the second half of 2024, 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%).
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HSA Deposit Rate Update – March 2024

April 2, 2024 Research
In its fifth consecutive meeting, the Federal Reserve has maintained the federal funds rate between 5.25% and 5.50% for the first quarter of 2024, signaling that the rate may have peaked this cycle. Projections from the Fed’s March FOMC meeting suggest a possibility of 75 basis points reduction in 2024, contingent on economic data aligning with their 2% inflation target. Concurrently, HSA deposit rates have increased slightly since 2021, with average rates at 0.43% for a $1,000 balance and 0.54% for a $10,000 balance as of March 31st, 2024, indicating a gradual upward trend influenced by tiered rate schedules.
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HSA Deposit Rate Update – December 2023

January 8, 2024 Research
The rapid rise in the federal funds rate over the course of 2022 and 2023 has resulted in continued increases in the average rate paid on HSA deposit balances. As of December 31st, 2023, HSA providers are paying an average rate of 0.42% at the $1,000 balance threshold, an increase of 8 basis points from September 2023.
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