Important information about your HSA investments
Experience more with HSA Invest
The new HSA Bank investment program is available.
There's a new investment program – HSA Invest. This program is designed to streamline your investment experience while it gives you greater options and control.
Read on for important dates, details, FAQs and actions you may need to take.
Don’t miss the emails about this exciting new program!
Three investment options directly from HSA Bank:
Choice
Get a simplified brokerage experience with a large range of stocks, mutual funds, exchange-traded funds (ETFs) and more. This option is ideal if you're an experienced investor who may not need guidance from a professional.
Select
Get a recommended list of mutual funds, specific to your unique risk tolerance and investment objectives. All funds are selected by an SEC-registered investment advisor (RIA), organized by asset class, and aligned to your investment profile. This option gives you guidance and the opportunity to make the final decision about your investments and allocations.
Managed
Go beyond the tailored guidance in the Select option and have your investments completely managed by an SEC-RIA for an even higher level of personalization.
You may have one or all of the investment options based on your employer program. Your option(s) will show in your online account.
What awaits you:
Integrated experience
You’ll be able to fully manage your investments alongside your HSA cash balance from the HSA Bank Member Website and app. You can save, spend and invest on just one site and app without redirects or additional logins!
Immediate action
Same-day enrollment, funding and trading means there's no lag time between buying and selling your investments.
Personalized investment options
Three investment options offer greater personalization and address different risk tolerances and objectives.
Here’s what else:
Money remains in your HSA cash balance until it’s invested, so it’s available for qualified medical expenses if you need it.
Once invested, dividends and interest are automatically reinvested. Plus, there’s an auto funding feature so new funds go directly to the funds you chose.
Important dates
July 24
- HSA Invest is available for enrollment.
July 24 through Sept. 24
- You have access to trade and manage your existing Devenir and Schwab investments. You can transfer HSA funds from your existing investments to your HSA Bank cash balance.
- If you enroll in HSA Invest, one-time, auto-sweep and recurring transfers to Devenir and Schwab will be canceled.
On or about Sept. 24
You will only be able to invest new HSA funds in the HSA Invest program. One-time, auto-sweep and recurring transfers from your HSA cash balance to Devenir and Schwab will stop.
- For Devenir investors, you can still move money between existing funds and adjust asset allocations. To invest in a similar program, enroll in the Select option. Get details on auto-rebalancing, liquidation and more.
- For Schwab Health Savings Brokerage Account (HSBA) investors, the program changes to sell-only (no new purchases allowed) and any available cash funds at Schwab will automatically transfer daily to your HSA cash balance at HSA Bank. Only invested assets are held at Schwab. To invest in a similar program, enroll in the Choice option. Get details on transfers, sweeps, liquidation and more.
Frequently asked questions
General FAQ
1. Log in to your account.
Use your existing username and password. You only need to create a username and password if you haven’t accessed your account online before.
If you access the Member Website from a third-party site, like your employer benefits site or insurance site, access as you normally do.
2. Go to Manage Investments.
3. Begin HSA Invest enrollment process.
Note: Once you enroll in HSA Invest, one-time, auto-sweep and recurring transfers to Devenir and Schwab will be canceled
Once available, you can access the new investment program on the Member Website under Manage Investments.
You can continue to access your existing investments with Devenir and Schwab on the Member Website under Manage Investments.
Call the number on the back of your HSA Bank Health Benefits Debit Card for help from HSA Bank Client Assistance Center representatives.
We actively review what we offer you, and are pleased to present HSA Invest. This new program offers a seamless investment solution with multiple options. HSA Invest will give you more ways to access and manage the investments in your HSA with a host of enhanced features like:
- Money remains in your HSA cash balance until it’s invested, so it’s available for qualified medical expenses if you need it.
- Dividends and interest are automatically reinvested.
- Same-day enrollment, funding and trading means there’s no lag between buying and selling your investments.
- Better integration of cash balance and investment funds on one site and one app.
- Simplified process to enroll and invest.
You may have been impacted by an investment program change in 2023, which was outside HSA Bank’s control. HSA Bank had a long-standing relationship with TD Ameritrade to provide investment options to accountholders. Then, TD Ameritrade, Inc. was acquired by Charles Schwab. In September 2023, Schwab moved all TD Ameritrade accounts to Schwab, including those of HSA Bank accountholders.
The launch of HSA Invest is the first change initiated by HSA Bank, which happened to be in the same 12 months as the TD Ameritrade to Schwab transition.
You may be required to keep a minimum in your HSA cash balance to invest. Details are available on the Member Website under Manage Investments.
The annual fees are 0.10% for Choice, 0.25% for Select and 0.35% for Managed. HSA Invest annual fees for Select and Managed will be waived through 2024. Annual fees for Choice will be waived through 2025.
The fees are assessed on a quarterly basis and deducted from the investment balance. The fee is calculated on a percentage basis on the fair market value (FMV) on the last day of each quarter.
For every $1,000 you invest you’d pay $0.25 quarterly for Choice, $0.62 quarterly for Select and $0.87 quarterly for Managed.
HSA Invest annual fees are waived for any quarter when your average HSA cash balance for that quarter is $7,500 or more.
If your HSA is through your employer, log in to your account for specific fees.
Yes. When you enroll in HSA Invest you can set up automated funding. You can also set up automated funding after enrollment. Log in to your account, go to Manage Investments then Current Holdings to set up automated funding.
Yes. When you enroll in HSA Invest you can set up automated funding. You can also set up automated funding after enrollment. Log in to your account, go to Manage Investments then Current Holdings to set up automated funding.
Automated funding lets you move HSA funds into your investments and automatically trades according to the allocation you set. Here's what you need to know:
- Timing: Automated funding occurs daily between noon and 2 p.m. CT on market days.
- Deadline: To ensure your funds are moved and traded on the same day, set up automated funding before noon CT.
- Instant, one-time buy versus automated funding: If you prefer immediate trading, go to Available Investments and select Buy. This lets you buy stocks or ETFs instantly during market hours.
View all funds available in your online account or download the list.
This list may change as the investments are continuously monitored by the SEC-registered investment advisor.
The Choice option includes over 6,500 investments including those from American Century Investments, Clearbridge Investments, Dimensional Fund Advisors, Fidelity Investments, Franklin Templeton, Putnam Investments, Royce, Schwab, T. Rowe Price, Vanguard and more.
As of Aug. 15, there are two money market funds: Federated Hermes Government Obligations Fund (GOIXX) and Fidelity Government Money Market Fund (SPAXX).
Download the list of available investments in the Choice option. This list may change as the investments are continuously monitored by the SEC-registered investment advisor.
Yes, as part of the HSA Invest program, dividends are automatically reinvested to help maximize your investment growth. By enrolling in the HSA Invest program, you agree to this automatic dividend reinvestment. There’s no option to opt-out of dividend reinvestment.
All trades placed after 4 p.m. ET will be executed the next business day.
The HSA Invest program is designed to prioritize the stability and growth of your HSA. As such, options trading is not supported, as it doesn't align with the primary goals of an HSA. However, to help you build a well-rounded investment strategy, we offer a range of investment choices including mutual funds, stocks, and ETFs. These investments could help you grow your savings over time while maintaining the security and flexibility needed for healthcare expenses.
There’s no tax implication for liquidating your investments with Schwab, Devenir or HSA Invest because the investments are all part of your overall HSA with HSA Bank. The tax implication occurs when funds are distributed to either a provider or the accountholder to pay for eligible expenses. Form 1099-SA is issued at this time. This applies to residents of California and New Jersey as well, even though HSAs are taxed differently in these states.
HSA Bank does not provide tax or legal advice. Consult a qualified tax professional for assistance.
Managed investment option FAQ
If you select the Managed option, you’ll have the expertise of an SEC-registered investment advisor (RIA) who will make trades and manage your investments for you. It’s a hands-off way to invest. The Managed option offers a variety of exchange-traded funds (ETFs) in recommended portfolios. The portfolios have passively and actively managed ETFs across all major asset classes and investment styles. This option lets accountholders who want a simpler way to invest, do just that.
If you choose the Managed option, you’ll be asked to fill out an HSA-risk tolerance questionnaire to determine your advised risk level and investment objectives. The RIA will then manage a portfolio of exchange-traded funds (ETFs) based on your investment goals, risk tolerance and time horizon.
If you prefer to manage your portfolio yourself, you can enroll in the Choice investment option and/or the Select option for more flexibility to manage your own strategy.
We partnered with LeafHouse Financial Advisors LLC, a firm with substantial experience in managing money and investment strategies. Their team of RIAs are experts in handling investment portfolios. They apply their deep knowledge of the market and asset management to create personalized plans based on each investor’s goals and risk level.
The Managed investment option has an annual fee of 0.35% (charged quarterly). View more details about fees. This fee covers the RIA who will actively manage, complete market research, and make investment decisions on your behalf.
With the Managed option, your portfolio of investments is based on your risk level and how long you want to invest. If either changes, you can adjust your investments to match your current goals. You may choose to be moved to a more conservative model to lower risk or a higher risk model to keep your investments where you want them. Your portfolio also can be rebalanced with subsequent purchases and on a quarterly schedule.
You can monitor your investments in the Manage Investments section of your online account.
Schwab HSBA FAQ
In September, the Schwab HSBA program will change to sell-only (no new purchases allowed). You can enroll in the Choice option beginning in July to invest new HSA funds. You may choose to liquidate your Schwab HSBA securities and transfer cash to your HSA cash balance.
Selling all your securities in your Schwab HSBA.
Yes, you can liquidate your Schwab assets and transfer them to your HSA cash balance to trade in the new HSA Invest program.
Log in to your Schwab HSBA and liquidate your securities. When all trades have settled, log in to your HSA, go to Manage Investments, and select Make a One-Time Transfer from the Manage Your Account drop-down menu to schedule a transfer of your Schwab HSBA available balance to your HSA cash balance.
You may liquidate your Schwab assets and transfer funds to your HSA cash balance, then invest your funds in HSA Invest. If you self-liquidate, there’s no fee. You may be charged certain account activity fees by Charles Schwab for assistance with liquidation. Please reference the Charles Schwab Pricing Guide for Health Savings Accounts for fees.
Assets from Schwab cannot be transferred to HSA Invest through an Automated Customer Account Transfer (ACAT) at this time.
HSA Invest offers unique benefits when compared to the existing Schwab Health Savings Brokerage Account (HSBA) option.
HSA Invest | Schwab HSBA | |
Access to HSA cash balance and investments with one website login, and from one app | Yes | No |
Funds go from your cash balance to investments real-time | Yes | No |
Funds remain in your cash balance until you invest so are accessible for qualified medical expenses | Yes | No |
Streamlined steps to liquidate investments and move funds to your cash balance to use for qualified expenses | Yes | No |
Access to HSA-appropriate investments selected by an SEC-registered investment advisor | Yes | No |
Simple interface for beginner and advanced investors | Yes | No |
Real-time and fractional share trading (during market hours) | Yes | Yes |
Thousands of investments including stocks, mutual funds and ETFs | Yes | Yes |
When the Schwab HSBA program transitions to sell-only on or about Sept. 24, you’ll have the flexibility to keep your CD. There's no need to sell your CD before your Schwab investments become sell-only.
After the Schwab HSBA program becomes sell-only, dividends will continue to be reinvested in existing Schwab HSBA investments since dividend reinvestment is not considered to be an investment buy.
Many of the investments in the Schwab Health Savings Brokerage Account (HSBA) program are available in HSA Invest. However, certain investment types are not offered in HSA Invest. That’s because the HSA Invest program is designed to prioritize the stability and growth of your HSA. HSA Invest offers thousands of investments including mutual funds, stocks, and ETFs that can help you grow your savings over time while maintaining the security and flexibility needed for healthcare expenses.
These investment types aren’t available in HSA Invest:
• Certificate of deposit
• Collateralized mortgage obligation
• Commissioned fixed income
• Corporate bond
• Escrow
• Foreign denominated debt
• Marketplace load funds (equity)
• Marketplace load funds (fixed income)
• Marketplace money market funds
• Mortgage-backed pass through - FNMA
• Municipal bond
• GNMA
• Offshore funds
• OneSource equity & fixed income funds
• Options
• Reorganized debit and stock
• Schwab money market funds
• Schwab variable NAV funds
• Treasury bill
• Treasury coupon
• Treasury Inflation-Protected Securities
• Treasury strip
• Unit investment trust (UIT) – stock-based
• U.S. agency bond
• U.S. denominated debt
Some investments in the below categories aren’t available in HSA Invest. If you have holdings in one of these investment categories call the number on the back of your card or review the list of unavailable investments to find out if your specific holding is impacted.
• American depositary receipt
• Mutual funds
• Common stock
• Convertible preferred stock
• Foreign Canadian and ordinaries
• Limited partnership
• Mixed unit
• Preferred stock
• Real estate investment trust
• Synthetic preferred (fixed rate capital securities)
• Unit investment trust (UIT) – exchange-traded
• Unlisted foreign ordinaries
• Warrant
Beginning on or about Sept. 24, 2024, all Schwab HSBA investments are sell only and no new purchases are allowed. Any Schwab HSBA holdings that are not offered in HSA Invest cannot be transferred to the HSA Invest program.
You can choose to liquidate these investments or keep them in sell-only status. Liquidating these investments allows you to purchase new similar investments and set up automated investment funding in HSA Invest.
If you have liquid balances from dividends or sales in your Schwab account, these will be transferred to your HSA cash balance twice per week, making it easier for you to reinvest through HSA Invest. You'll see the cash credited to your account on Tuesdays and Fridays. If you chose to have your dividends reinvested, they will continue to be reinvested in your Schwab account as usual.
Devenir FAQ
If you enroll in HSA Invest, one-time, auto-sweep and recurring transfers to Devenir will be canceled. You can still move money between existing funds and adjust asset allocations.
You’ll have access to trade and manage your investments, but in September, transfers and sweeps from your HSA cash balance will stop. You can still move money between existing funds as well as adjust asset allocations. Auto-rebalancing will continue as scheduled. You may choose to liquidate and transfer your assets to your HSA cash balance. Then, in 2025, all assets will transfer to the HSA Invest Select option. Details will be shared in the coming months, but this transfer won’t occur before Feb. 1, 2025.
You will need to enroll in the new program to continue investing your HSA funds. You may liquidate and close your Devenir program, or transfer securities that are supported in the new program.
Log in to your HSA, go to Manage Investments, and select Make a One-Time Transfer from the Manage Your Account drop-down menu to schedule a transfer of your Devenir available balance to your HSA cash balance.
You may liquidate your Devenir assets and transfer funds to your HSA cash balance, then invest your funds in HSA Invest.
Assets from Devenir cannot be transferred in kind to HSA Invest at this time. A transfer in kind will be initiated by HSA Bank on your behalf in 2025. Details will be provided.
SECURITIES AND INVESTMENTS
Not Insured by FDIC or Any Other Government Agency |
Not Bank Guaranteed |
Not Bank Deposits or Obligations |
May Lose Value |
You may be required to keep a minimum balance in your HSA cash balance to invest funds.
Schwab Health Savings Brokerage Account (HSBA) is offered through Charles Schwab & Co., Inc. (Member SIPC), a registered broker dealer, which also provides other brokerage and custody services to its customers. Devenir Mutual Fund Selection Option is provided by Devenir Investment Advisors, LLC, a registered investment advisor that selects and monitors the performance of the mutual fund lineup. The HSA Invest program is administered by DriveWealth, LLC, a FINRA registered broker dealer. LeafHouse Financial Advisors, LLC is a registered investment advisor with the U.S. Securities and Exchange Commission that selects and manages the investments. Registration does not imply a certain level of skill or training. More information about LeafHouse Financial Advisors, LLC, including investment strategies, fees and objectives, can be found in the ADV Part 2A, which is available on the Member Website.
HSA Bank, Charles Schwab & Co., Inc., Devenir Investment Advisors, LLC, DriveWealth, LLC and LeafHouse Financial Advisors, LLC are not affiliated and not responsible for the products and services provided by the other. Neither HSA Bank, Devenir nor DriveWealth can provide investment advice to investors. Past performance is not indicative of future results. All investments involve risk, including loss of principal, and there is no guarantee that investment objectives will be met. The ability to replace investment losses may be limited by the annual HSA contribution limits.