When Does Your HSA Earn Interest?

Are you making the most of your Health Savings Account (HSA)? One of the great benefits of an HSA is the ability to earn interest on your account balance. But when exactly does your HSA earn interest?

Unlike a traditional savings account, most HSAs require you to have a certain minimum balance before you start earning interest. The threshold amount varies by provider, so it's important to check with your HSA administrator to understand their specific requirements.

Typically, your HSA will start earning interest as soon as you have met the minimum balance requirement. The interest is then calculated on a daily or monthly basis, depending on the provider, and added to your account at regular intervals.

Remember that the interest earned in your HSA is tax-free, just like your contributions and withdrawals for qualified medical expenses. This makes an HSA a smart way to grow your healthcare savings over time.

Are you taking full advantage of your Health Savings Account (HSA)? One of the standout features of an HSA is its ability to generate interest on your balance, providing you an additional avenue to grow your savings.