Bank of America HSA
Bank of America offers an HSA with a $2.50 monthly fee and investing through Merrill once your balance reaches $1,000. Cash balances are FDIC-insured because Bank of America, N.A. is an FDIC member; invested funds carry market risk. It's a straightforward option, especially if you already bank with BofA.
Is the Bank of America HSA worth it?
Bank of America offers an HSA with a $2.50 monthly fee and investing through Merrill once your balance reaches $1,000. We source this from Bank of America; it carries our ◆ Partner data label.
An HSA is a triple-tax-advantaged account for medical expenses. Bank of America, N.A. is an FDIC member, so cash balances are insured up to $250,000 per depositor; money you invest is not FDIC-insured and can lose value.
The honest caveat: figures are partner-supplied and plan terms can change, so confirm current details on Bank of America’s own site. This is not financial advice.
How does a high-yield savings account work?
A high-yield savings account holds cash and pays interest, quoted as an annual percentage yield (APY). The bank can change a variable APY at any time, and federal rules may limit certain withdrawals. Interest compounds — usually daily or monthly — and is taxable income in the year you earn it.
What are the pros and cons of the Bank of America HSA?
The Bank of America HSA stands out for investing through Merrill once the balance reaches $1,000, though a $2.50 monthly fee applies.
- Investing through Merrill once the balance reaches $1,000
- Cash balances are FDIC-insured (Bank of America, N.A.)
- Integrates with existing BofA online banking
- A $2.50 monthly fee applies
- Investing only starts above a $1,000 balance
- Invested funds are not FDIC-insured and can lose value
Who should get the Bank of America HSA?
The Bank of America HSA is best for existing Bank of America customers who want everything in one place.
- Existing Bank of America customers who want everything in one place
- People who want investing through Merrill
- Savers who value a large, established bank
How does the Bank of America HSA compare?
Among the 6 health savings accounts (hsas) we track, the Bank of America HSA ranks #6 with a money8020 score of 75/100.
| Product | Score | Tier | Provider |
|---|---|---|---|
| Fidelity HSA | 97 | Essential | Fidelity Investments |
| Lively HSA | 96 | Essential | Lively |
| HealthEquity HSA | 81 | Strong | HealthEquity |
| HSA Bank | 79 | Strong | HSA Bank (a Webster Bank brand) |
| Optum Bank HSA | 77 | Strong | Optum Bank |
See all health savings accounts (hsas), ranked →
Common mistakes to avoid with a high-yield savings account
- Chasing a teaser rate without checking the ongoing APY or any balance tier needed to earn it.
- Leaving an emergency fund in a 0.01% big-bank account instead of a high-yield account.
- Assuming the APY is fixed — it is variable and can drop after you open.
- Overlooking transfer times: moving money to a linked bank can take one to three business days.
Key takeaways
- Bank of America HSA earns a money8020 score of 75/100, ranking #6 of 6 health savings accounts (hsas).
- Investing through Merrill once the balance reaches $1,000
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- Best for existing Bank of America customers who want everything in one place.
- Rate and terms sourced from our verified data partner.
Frequently asked questions about the Bank of America HSA
What does a Bank of America HSA cost?
It carries a $2.50 monthly fee, and you can invest through Merrill once your balance reaches $1,000. Confirm current terms on Bank of America's site. This is not financial advice.
Is a Bank of America HSA FDIC insured?
Cash balances are FDIC-insured because Bank of America, N.A. is an FDIC member, up to $250,000 per depositor. Money invested through Merrill is not FDIC-insured and can rise or fall in value.
Can the rate on the Bank of America HSA change?
Yes. A high-yield savings APY is variable, so the bank can raise or lower it at any time, often following moves in the federal funds rate. Check the rate before you open and review it periodically.
How is interest from the Bank of America HSA taxed?
Savings interest is taxable as ordinary income in the year you earn it. If you earn more than $10, the bank sends a Form 1099-INT, and you report it on your federal return.
Sources
We sourced these figures from our verified data partner and independently confirmed the provider’s regulator status, last checked May 30, 2026. Primary sources: