Research

The coronavirus pandemic in the United States forced the Federal Reserve to cut rates close to zero in order to dampen the effect of the virus on the U.S. economy. In this unique time, Devenir has been observing how health savings account (HSA) providers have reacted to the rate cut.

We published our latest analysis of how health savings accounts are faring among credit unions, finding at the end of 2019 credit unions held about $1.76 billion in HSA deposits.

HSA investments have grown rapidly in recent years, reaching 24% of total assets and over 1.2 million (4%) accounts as of 12/31/2019. The average investment balance for investment account holders has grown to $12,695 in 2019, from roughly $5,000 in 2011. When it comes to investing, HSA account holders generally have the option to choose from a list of pre-selected mutual funds, however, some HSAs allow for investment in a linked self-directed brokerage (SDB) option (allowing investment in individual securities).

Devenir’s quarterly credit union HSA update finds over $1.76 billion in HSA deposits were held in credit unions as of 12/31/2019.

Findings from the 2019 Year-End Devenir HSA Research Report containing health savings account (HSA) market statistics as of December 31^st, 2019.