HSA Bank
HSA Bank, a brand of Webster Bank, N.A., is a long-running HSA custodian available both to individuals and through employers. It offers a self-directed brokerage option through Charles Schwab. Cash balances are FDIC-insured because Webster Bank is an FDIC member; invested funds carry market risk.
Is the HSA Bank worth it?
HSA Bank, a brand of Webster Bank, N.A., is a long-running HSA custodian available both to individuals and through employers. It offers a self-directed brokerage option through Charles Schwab. We source this from HSA Bank; it carries our ◆ Partner data label.
An HSA is a triple-tax-advantaged account for medical expenses. Webster Bank, 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: maintenance fees are variable by balance and plan, so confirm the current fee schedule on HSA Bank’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 HSA Bank?
The HSA Bank stands out for established custodian backed by Webster Bank, N.A., though monthly maintenance fees can apply depending on balance and plan.
- Established custodian backed by Webster Bank, N.A.
- Self-directed investing through Charles Schwab
- Cash balances are FDIC-insured (Webster Bank)
- Monthly maintenance fees can apply depending on balance and plan
- Invested funds are not FDIC-insured and can lose value
- Fee schedule varies — confirm before opening
Who should get the HSA Bank?
The HSA Bank is best for people who want an established, bank-run HSA custodian.
- People who want an established, bank-run HSA custodian
- Savers who want Charles Schwab self-directed investing
- Both individual and employer-sponsored HSA users
How does the HSA Bank compare?
Among the 6 health savings accounts (hsas) we track, the HSA Bank ranks #4 with a money8020 score of 79/100.
| 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
- HSA Bank earns a money8020 score of 79/100, ranking #4 of 6 health savings accounts (hsas).
- Established custodian backed by Webster Bank, N.A.
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- Best for people who want an established, bank-run HSA custodian.
- Rate and terms sourced from our verified data partner.
Frequently asked questions about the HSA Bank
Who runs the HSA Bank HSA?
HSA Bank is a brand of Webster Bank, N.A. It offers HSAs to individuals and through employers, with a self-directed brokerage option through Charles Schwab. Fee schedules vary, so confirm current terms on HSA Bank's site. This is not financial advice.
Is an HSA Bank account FDIC insured?
Cash balances are FDIC-insured because Webster Bank, N.A. is an FDIC member, up to $250,000 per depositor. Money you invest through Schwab is not FDIC-insured and can rise or fall in value.
Can the rate on the HSA Bank 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 HSA Bank 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: