Health Savings Accounts Rise to More Than $11.7 Billion in Total Deposits in June

MINNEAPOLIS–Health Savings Accounts (HSAs) rose to more than $11.7 Billion in June according to a survey and resulting research report conducted by Devenir, an investment firm that specializes in providing investment options for HSAs.

The survey data was collected in July, 2011 and primarily consisted of the top 50 custodians in the health savings account market, with all data being collected for the June 30th period. “As we continue to conduct the survey we are finding interesting data points on the HSA marketplace that have not been previously reported at an industry level,” says Eric Remjeske President and Co-Founder of Devenir.

Key Findings from the Devenir June 2011 survey and research report:

  • Rapid growth. HSAs continue to see strong growth as the total number of HSA accounts rose to 6.3 million with assets totaling $11.7 billion, a year over year increase of 28% for accounts and a 31% increase in assets, as well as 17% growth in assets so far in 2011.
  • Largest custodians hold significant market share. The top 5 custodians hold over $5.3 billion in HSA assets amongst almost 2.7 million accounts, accounting for 45% of all HSA assets.
  • Average account balance grows. The average account balance in 2011 grew to $1,845 from $1,640 at the end 2010, a 12.5% increase. When you eliminate identified zero balance accounts that average rises to $2,016.
  • Contributions and Withdrawals. HSA custodians retained 20% of customer contributions over the past year1.
  • HSA investment dollars continue to grow. HSA investment assets reached an estimated $860 million in June, a 60% year over year increase and are projected to reach $9.1 billion by end of 2015. The average investment account holder has a $12,462 average total balance (Deposit and investment account).

“The industry continues to see strong growth as both employers and individuals recognize the financial and consumer benefits of an HSA,” according to Jon Robb, Lead Research Associate with Devenir. Devenir projects the HSA market to reach $47.3 billion in assets by the end of 2015, a 37% CAGR over the next five years2. Devenir also projects that HSA investment dollars will continue to grow quickly as health savings account user’s balances become larger, representing 19% of all HSA assets by the end of 2015.

  1. Estimate derived from Midyear 2011 Devenir HSA survey, press releases, previous market research, and market growth rates.
  2. CAGR stands for Compound Annual Growth Rate. Projections are barring any dramatic regulatory or market environment changes.

Forward-looking statements are based on current expectations and assumptions based on historical growth, the economy and other future conditions and forecasts of future events, circumstances and results. As with any projection or forecast, they are inherently susceptible to uncertainty and changes in circumstances.

About Devenir

Devenir, a full-service broker dealer and registered investment advisor based in Minneapolis, is a national leader in providing customized investment solutions to the HSA Custodian marketplace. As an independent investment firm, Devenir offers a host of investment options to suit the unique needs of employers, banks, third party administrators and plan participants. Devenir provides user-friendly and cost-effective investment platforms by integrating quality investment choices with streamlined administrative processing. This solution allows any bank or third party administrator to attach a robust back-end investment option to most health benefit plans.