During the fourth quarter of 2025, data collected from HSA Search indicated HSA deposit rates were unchanged across balance tiers, with the exception being the $1,000 threshold, which increased 0.01%. The $1,000 balance rose from 0.45% to 0.46%, while the $10,000 and $25,000 balance tiers remained constant at 0.55% and 0.60%, respectively. Analysis of the last three quarters reveals that the lowest balance tier increased at a faster rate compared to higher balance tiers. This pattern may indicate providers are strategically adjusting rates to incentivize new account holders with lower initial balances.

The Federal Reserve reduced rates three times in 2025 with two of those cuts occurring in the fourth quarter. The Effective Federal Funds Rate (EFFR) is now at 3.64%1, which remains lower than the long-term median value between July 1954 to present of 4.33%. However, it is still elevated compared to pre-2022 levels before the Federal Reserve’s rate hiking cycle began. Although the Fed cut rates twice last quarter, upward movement suggests that providers want to continue their commitment to attracting and retaining account holders through competitive interest offerings. The spread between the rates offered for $1,000 and $25,000 balance tiers is 14 basis points. This gap has narrowed by 2 basis points over the last year.

HSA providers continue to monitor their deposit rates for several reasons — attracting new account holders, staying competitive for existing account holders, fluctuating funding costs, and evolving Federal policies. For employers and account holders, this means paying closer attention to rate updates, particularly as economic conditions remain fluid.

Note: The above reflects Devenir’s summary of publicly available data. We encourage readers to confirm specific rates with individual HSA providers, as offerings can differ significantly and change without notice.

References

  1. Federal Reserve Bank of New York, Effective Federal Funds Rate [EFFR], retrieved from FRED, Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/EFFR, January 1, 2026