Can You Buy CDs in an HSA Account?

As you consider options to help grow your HSA (Health Savings Account) funds, you may wonder if you can purchase a CD (Certificate of Deposit) within your HSA account. The answer is yes, you can buy CDs in an HSA account, providing you with a secure and potentially higher interest-earning investment.

CDs are a popular financial product that offers a fixed interest rate for a specific term, typically ranging from several months to a few years. Here's how you can benefit from purchasing CDs in your HSA:

• Security: CDs are FDIC-insured, meaning your funds are protected up to a certain limit.
• Stability: CD interest rates are typically higher than regular savings accounts, offering a stable investment option.
• Earnings: By investing in CDs through your HSA, you can potentially grow your savings with the added advantage of tax-free withdrawals for qualified healthcare expenses.

It's essential to consult with your HSA provider or financial advisor to ensure that buying CDs is allowed and aligns with the rules and regulations of your HSA plan. Keep in mind that each HSA provider may have specific guidelines regarding investment options within the account.

Yes, it's possible to purchase CDs (Certificates of Deposit) within your Health Savings Account (HSA), allowing you to secure your funds while potentially earning a higher return compared to traditional savings.