Can a Fidelity HSA invested in a CD Lose Value?

When it comes to Health Savings Accounts (HSAs) and investing in Certificates of Deposit (CDs), it's important to understand how they work together. An HSA through Fidelity allows you to invest your funds, including in CDs, to potentially grow your savings over time. However, there are factors to consider when thinking about the value of your investment.

CDs are considered low-risk investments because they offer fixed interest rates over a specific term. While investing in a CD in your Fidelity HSA can be a safe option, there are instances where the value could be impacted:

• If you withdraw funds before the CD matures, you may incur penalties and lose some of the interest earned.
• If the interest rate environment changes and new CDs offer higher rates, your existing CD's value may be lower comparatively.

It's essential to keep an eye on the terms of your CD investment, any penalties for early withdrawal, and the current interest rate climate to make informed decisions about your Fidelity HSA investment.

When considering a Health Savings Account (HSA) with Fidelity, investing in low-risk options like Certificates of Deposit (CDs) can be a wise choice, but it’s crucial to understand how such investments might fare.