The HSA Report Card

Fidelity S

Fidelity

 

Headquartered in Boston, Fidelity is one of the largest mutual fund companies and the leading provider of workplace savings plans in the nation. Since 2005, Fidelity has offered a Health Savings Account (HSA) to companies and organizations that have their defined contribution plan(s) recordkept by Fidelity. Previously, only individuals who were employed by these companies and organizations were eligible to open a Fidelity HSA, but as of November 15, 2018, individuals can now self-enroll.  

 

Report Card for Fidelity

as a Spending Vehicle

Fees

A

Fund Access

A

Features

B

Overall

A-

 
 

Fees for Individuals (Non-Employer Group)

The best HSAs for spenders have no monthly maintenance fees. Fidelity doesn’t charge a monthly maintenance fee.

Also, the best HSAs for spenders have very few behavioral fees. These additional fees are not recurring in nature, but can be incurred by the account holder for various reasons including; over contributing, over-drafting, withdrawing funds from an ATM, transferring assets to another custodian, closing an account, etc. Fidelity has no such fees, except a transfer fee.

Below we have reconstructed Fidelity’s fee schedule to exhibit fees spenders are most likely to encounter.

Fidelity Fee Schedule (Non-Employer Group)
  • Monthly Fees

  • Maintenance$0

  • Investment$0

  • 1Paper Statements$0

  • Behavioral Fees

  • Excess Contribution$0

  • Overdraft$0

  • Stop Payment$0

  • Point of Sale$0

  • 2ATM Withdrawal$0

  • Check Distrtibution$0

  • Rollover$0

  • Transfer$25

  • Closing$0

  • 3Replacement Card$0

1 Electronic or paper, free of charge
2 You cannot use the Fidelity HSA® debit card at an ATM.
3 No charge for initial, extra (e.g. spousal) or replacement cards.

 
 

 In the chart below you can compare Fidelity's fees to those of its competitors.

 
Highcharts Tutorial
 

 

Payments

 

When you, your spouse, and your dependents have qualified medical expenses that aren’t covered by your health care plan, you can use your HSA money tax-free to pay for them. There are multiple ways you can spend from your HSA.

(✔) Debit Card

Your Fidelity HSA® debit card is a simple way to pay for your qualified medical expenses on-the-spot. Also, you can now pay with your debit card using Apple Pay®

(✔) Bill Pay

Fidelity BillPay® for HSAs is a simple online service enabling you to pay bills for qualified medical expenses electronically. You can use BillPay to pay your electronic bills with your HSA money anytime, anywhere you have an internet connection, with just a few clicks.

(✔) Checks

If you’d prefer to write a check to pay your health care provider, that’s an option too. Checks are free of charge.

 
 

 Reimbursement

 

You can pay for qualified medical expenses out-of-pocket and reimburse yourself anytime using your HSA money. As long as you opened your HSA before the expense was incurred, your reimbursement will be tax-free. You can:

(✔) Transfers

Transfer money online from your HSA to your personal bank account using an electronic funds transfer (EFT) for qualified medical expenses you paid from a taxable account.

(✖) ATM Withdrawls

You cannot use the Fidelity HSA® debit card at an ATM. Your Fidelity HSA debit card can be used only to pay for goods and services that are qualified medical expenses.

(✔) Checks

Mail yourself a check through the transfer money feature. Checkbook — You can request a checkbook to reimburse yourself for qualified medical expenses you paid from a taxable account.


 

Features

 

Direct & Payroll Deposit

You can contribute to your HSA using electronic funds transfer (EFT). You can make one time or recurring direct deposits from a linked bank account.

What about payroll deductions?

In some cases, employers may allow pre-tax payroll contributions to a personal Fidelity HSA. Check with your employer to see if that’s an option for you.

Member Services

Call Center staffed 24/7 by HSA representatives and series 7 licensed investment professionals.

Mobile Banking

Your Fidleity HSA is as close as your mobile phone so you can securely view balances and activity as well as receive account alerts.

  • Account Information: View your contribution amounts, investments, transactions and previous years’ HSA information.

  • Expenses: Examine your individual claims, including when you received service, who provided it and the amount you’re responsible for.

  • Pay bills: Receive a notification when your bills are available and pay on the go with your Fidelity® Cash Management Account.


 

Pros & Cons

 
Pros
  • 100% fee-free

  • Multiple reimbursement methods

  • Receipt storage tool
Cons
  • Goliath in the benefits industry. May not provide the best customer service.

 
 

Which participants are best suited for a Fidelity HSA?

 

Other In Depth Reviews

 


 

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