Personal Finance

Fidelity HSA vs. Lively HSA

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A Health Savings Account (HSA) can provide you with a tax-advantaged way to save for healthcare costs. You can use your HSA funds immediately or save them for future use since the money rolls over year-to-year.

There are different accounts available, and this article will take a look at the Fidelity HSA vs Lively HSA so you can get an idea if one might be right for you.

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Learn More:How HSA Health Plans Work

About Each Brand

Fidelity HSA

Fidelity is a well-known investment company. Even though there was a Fidelity fund before 1946, that was the year that a management and research company was founded to advise the existing fund. Today, [wp_shortcode_181] offers the ability to buy and sell a variety of assets, as well as provide a range of brokerage and financial planning services.

Fidelity offers an HSA and provides a range of investment choices for the account, including funds created for HSA investing, as well as guidance and help with choosing investments. Its fairly easy to manage a Fidelity HSA from anywhere, and the company has a long history of tailoring funds for different purposes.

Lively HSA

Lively was founded in 2016 as a way to simplify the process of setting up an HSA, whether or not an employer offered the account. Lively offers HSA accounts for individuals as well as employer-connected accounts.

With Lively, its possible to easily navigate a dashboard that helps you stay on top of your contributions and review your spending summary. Additionally, Lively has a partnership with TD Ameritrade for investing HSA dollars. The interface is easy to use, with a one-login agreement that allows you to access your self-directed investment account from your Lively HSA account.

Read the full Lively Review

Key Features

Fidelity HSA

Basic Features

  • Easy to manage:The Fidelity HSA is easy to manage from your account. Simply set up an account, fund it and keep track of everything from a dashboard.
  • Debit card:An HSA debit card makes it easy to pay for qualified expenses no matter where you are.
  • Fidelity BillPay:Pay bills from your HSA quickly and easily using the online interface. Its also possible to set up recurring bill payments.
  • Reimbursement:Reimburse yourself for qualified expenses by transferring money directly to your bank account, or getting a check.
  • Cash balance FDIC-insured:A portion of your HSA is held in an FDIC-insured account that earns an APY.
  • Ability to invest funds:Invest your HSA dollars so they grow for the future.

Special Features

  • Funds for HSA investing:Fidelity suggests some of its proprietary funds for HSA investing. Investment minimums and transaction fees are waived when used in your HSA.
  • Investment help:Receive guidance on choosing investments for your HSA.

Lively HSA

Basic Features

  • Easy to manage:The Lively dashboard is easy to navigate and offers a simple way to keep track of your account.
  • Debit card:Use an HSA debit card to pay for qualified expenses.
  • Reimbursement:Its possible to set up reimbursement to your bank account through a transfer.
  • FDIC-insured cash balance:The part of your HSA thats held in cash earns an APY and is FDIC-insured.
  • Ability to invest funds:Its possible to invest HSA dollars to grow for the future, in addition to using them today.

Special Features

  • Self-directed investing through TD Ameritrade:Partnership with TD Ameritrade offers a one-click login from the Lively account to manage your investments and transfer funds.
  • See plan information from your dashboard:Set up your Lively account to see your health plan information, including your current out-of-pocket expenses and what remains of your deductible.

Fees

Both the Fidelity HSA and the Lively HSA have no maintenance fees and no investing fees. While there might be expense ratios for some mutual funds or ETFs, there are no fees associated with individual plans.

Employers pay fees based on the number of employees they include in the plan and might choose to pass those on to employees, but there are no fees charged for individual accounts.

Pros and Cons

Fidelity HSA Pros

  • Access to Fidelity funds:Invest in recommended funds for HSA investing without worrying about fund minimums or transaction fees.
  • Get help choosing investments:Guidance for choosing investments aimed at growing an HSA. Additionally, get access to planning help for retirement and healthcare.
  • BillPay:Ability to use online BillPay, including to set up recurring payments.

Lively HSA Pros

  • Individual investing choices:Ability to invest HSA dollars in a self-directed account with a single login to TD Ameritrade.
  • Intuitive dashboard:See everything in one place, including keeping track of how much youve spent out-of-pocket and how much of your deductible youve spent.
  • Marketplace:A variety of products and services that are compatible with HSA spending, including discounts and offers.

Fidelity HSA Cons

  • No auto rebalance:Theres no way to rebalance your investment portfolio automatically.
  • Some funds come with minimums:While there are some funds with minimums waived when using Fidelity, not all of them are. Some of the funds you want to invest in might have a minimum investment requirement.

Lively HSA Cons

  • TD HSA investments require a separate account:Even if you have a TD account for trading, your HSA-connected account is separate and it doesnt interact with your other brokerage account.
  • No investment guidance:While there is an option to use a pre-constructed portfolio, Lively doesnt offer investment guidance to help you plan for retirement or healthcare.

Related:Should You Use an HSA for Retirement Savings

FAQs

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Why Choose Fidelity?

Fidelity can be a good choice for someone who wants access to Fidelitys funds and guidance for choosing investments based on what might help them reach their HSA portfolio goals.

Why Choose Lively HSA?

Lively HSA can be a good choice for those who want access to a complete dashboard that connects to their health plan. Additionally, Lively can be ideal for those who are comfortable with a self-directed brokerage account.

Learn More:How to Use a Health Savings Accounts to Save For Retirement

In a Nutshell

Fidelity HSA vs Lively HSA have very similar features and costs. With both of these accounts, you can avoid maintenance and transaction fees, invest your HSA dollars without worrying about minimums and access a variety of investment choices.

However, Fidelity has the benefit of being a brokerage and can offer more personalized recommendations, while Lively has the benefit of a more robust dashboard that is easy to connect to your health plan.

Carefully consider what is likely to fit your needs and choose an HSA that works for you.

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