Over the past quarter, data collected from HSA Search showed HSA deposit rates increased from their previous levels. All three balance thresholds ticked up 0.01%. The $1,000 balance moved from 0.44% to 0.45%, the $10,000 balance ticked up from 0.54% to 0.55%, and the $25,000 balance went from 0.59% to 0.60%. Rates still appear to be relatively stable with a small increase or decrease of 0.01%-0.02% over the last year.

The Federal Reserve decreased rates for the first time in 2025. The Effective Federal Funds Rate (EFFR) is now at 4.09%1. It continues to be lower than the long-term average of 4.60% but elevated prior to the Federal Reserve’s rate hiking cycle, which started back in 2022. Even though the Fed cut rates last quarter, upward movement may suggest that providers want to continue their commitment to attracting and retaining account holders through competitive interest offerings. However, the spread between the rates offered for $1,000 and $50,000 balances has contracted from 18 basis points to 16 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, October 1, 2025