Health Savings Account (HSA) deposit rates remained unchanged across all balance tiers at the end of the third quarter of 2026, marking the second consecutive quarter of rate stability. The low-balance tier held steady at 0.45%, while the middle- and high-balance tiers remained at 0.55% and 0.60%, respectively. Although HSA deposit rates have remained relatively stable, we could see interest rates begin being influenced by Fed’s monetary policy again, as well as persistent inflationary pressures.

The Effective Federal Funds Rate (EFFR) increased to 3.88%1 at the end of the third quarter following the Fed’s unanimous decision to raise interest rates in mid-September, marking the first rate increase since 2023. Despite the recent increase, the EFFR remained 0.21 percentage points below its level a year earlier, and 0.71 percentage points below its long-term average of 4.59%2. Entering 2026, market expectations generally anticipated additional monetary easing following consecutive years of rate reductions. However, persistent inflationary pressures have prompted a rate hike and a reassessment of the interest rate outlook. According to CME FedWatch3, market participants increasingly anticipate another potential rate increase before year-end. Should additional monetary tightening occur, HSA providers may face greater pressure to adjust deposit rates upward.

HSA providers continue to evaluate their deposit rates in response to evolving market conditions and competition within the industry. While deposit rates have remained stable in recent quarters, changes in Federal Reserve policy could influence future rate adjustments. Given the uncertainty surrounding the interest rate environment, employers and HSA account holders should continue monitoring deposit rate trends to evaluate the competitiveness of their HSA offerings and identify potential opportunities to improve interest earnings on cash balances.

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, 2026
  2. YCharts, October 1, 2026, Effective Federal Funds Rate (I:EFFRND), YCharts, https://ycharts.com/indicators/effective_federal_funds_rate
  3. CME Group, October 19, 2026, FedWatch Tool, CME Group, https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html