Charles Schwab does offer HSA accounts, but only through a limited partnership

Charles Schwab does not operate its own HSA program. Instead, the company partners with HealthEquity, a third-party HSA provider, to offer HSA accounts to may be able to access customers. If you want to open an HSA through Schwab, you will be directed to HealthEquity's platform, where the account is actually held and managed. This means your HSA sits outside the main Schwab ecosystem, even though you may have accessed it through a Schwab referral or recommendation.

The partnership exists because HSAs are specialized accounts with strict IRS rules around who can open them and how the money can be used. Rather than build and maintain its own HSA infrastructure, Schwab chose to refer customers to an established HSA specialist. This is common among brokerages — many do not offer HSAs directly.

Key Takeaways

  • Charles Schwab partners with HealthEquity to offer HSA accounts, so your account will be managed through HealthEquity's platform, not Schwab's.
  • You must be enrolled in a high-deductible health plan (HDHP) through your employer or the individual market to open an HSA through any provider.
  • HealthEquity HSAs typically include investment options, checking and debit card access, and the ability to pay medical expenses directly from the account.
  • If you already have an HSA elsewhere, you can transfer it to HealthEquity without tax consequences, though the process takes several weeks.

How to open an HSA through the Schwab-HealthEquity partnership

To open an HSA, you first need to confirm you are enrolled in a high-deductible health plan (HDHP). This is an IRS requirement — you cannot open an HSA without one. Your employer's benefits materials or your insurance company can tell you whether your plan qualifies. If you buy insurance on the individual market, check the plan details or call the insurer directly.

Once you have confirmed HDHP enrollment, you can visit HealthEquity's website directly or follow a referral link from Schwab's site. You will provide your name, Social Security number, and proof of HDHP coverage. HealthEquity will verify your may be able to access with the IRS before the account opens. The whole process typically takes a few business days to a week.

After your account opens, you can fund it by having your employer deposit money directly from your paycheck (if your employer offers this option), by making personal contributions, or by transferring money from a bank account. You can also transfer an existing HSA from another provider into this HealthEquity account.

What you can do with a HealthEquity HSA through Schwab

HealthEquity HSAs come with a debit card that lets you pay for may have access to medical expenses directly from the account at the point of sale — at a pharmacy, doctor's office, or hospital. You can also withdraw money and pay out of pocket, then submit receipts for reimbursement. The account includes a checking feature, so you can write checks or set up automatic bill pay for medical bills.

The investment side depends on your account balance. Most HealthEquity HSAs let you invest money above a certain threshold (often $1,000 to $2,500, depending on the plan) in mutual funds or other securities. This is where the Schwab connection becomes more visible — HealthEquity often uses Schwab's investment platform for these options, so you may see familiar fund names and trading tools.

You can also use the account to pay for long-term care insurance premiums, certain health insurance premiums if you are unemployed, and Medicare premiums once you turn 65. The IRS maintains a detailed list of may have access to expenses on its website.

Fees and costs associated with HealthEquity HSAs

HealthEquity charges a monthly maintenance fee for HSA accounts, though the amount varies by plan type and account balance. Some employers negotiate lower or waived fees as part of their benefits package. You should ask your employer whether they have a negotiated rate before opening an account.

If you use the debit card, there are no transaction fees for purchases at most merchants. However, out-of-network ATM withdrawals typically cost $2 to $3 per transaction. Investment-related fees depend on the funds you choose — mutual funds have expense ratios, and some may charge trading commissions, though many HealthEquity-available funds are commission-free.

Wire transfers and account transfers from other HSA providers may incur small fees. Check HealthEquity's current fee schedule on their website, as fees change periodically.

Transferring an existing HSA to HealthEquity

If you already have an HSA with another provider and want to move it to HealthEquity, you can do a trustee-to-trustee transfer. This is the cleanest method — the old provider sends the money directly to HealthEquity, and there are no tax consequences or contribution limits to worry about. The process typically takes two to four weeks.

To start a transfer, contact your current HSA provider and ask for a trustee-to-trustee transfer form. You will need HealthEquity's routing and account information, which HealthEquity will provide once your new account is open. Fill out the form, submit it to your old provider, and follow up after a week or two if the money has not arrived.

Alternatively, you can do a rollover, where you withdraw the money yourself and deposit it into HealthEquity within 60 days. This is riskier because if you miss the deadline, the IRS treats it as a non-may have access to withdrawal and you owe taxes plus a 20% penalty. Trustee-to-trustee transfers avoid this risk entirely.

Comparing HealthEquity to other HSA providers

HealthEquity is one of several major HSA providers. Others include Fidelity, Lively (owned by Employers Health), and various regional banks and credit unions. Each has different fee structures, investment options, and user interfaces. HealthEquity is generally known for low fees (especially if your employer negotiates), a strong mobile app, and good investment choices.

If you are comparing providers, look at the monthly maintenance fee, ATM fees, investment expense ratios, and whether the provider offers a debit card. Also check whether your employer has a preferred or negotiated provider — using the employer's choice often means lower or waived fees. You are not locked into one provider forever; you can transfer to another HSA provider later if you find a better fit.

Why Schwab does not offer HSAs directly

HSAs are heavily regulated by the IRS, and the rules around may be able to access verification, contribution limits, and may have access to expenses are complex. Maintaining an HSA program requires specialized compliance infrastructure and ongoing audits. For a brokerage like Schwab, which focuses on investment and trading, partnering with a specialist like HealthEquity is more efficient than building that capability in-house.

This partnership model is standard across the industry. Fidelity offers its own HSAs because it has the scale and regulatory expertise, but many other brokerages refer customers to third-party HSA providers instead. The partnership does not limit your options — HealthEquity is a reputable, well-established provider with millions of accounts.

Frequently Asked Questions

Can I use my HealthEquity HSA to pay for anything other than medical expenses?

No. HSA funds must be used for may have access to medical expenses as defined by the IRS. These include doctor visits, prescriptions, dental work, vision care, and medical equipment. Non-medical withdrawals are subject to income tax plus a 20% penalty. After age 65, you can withdraw money for any reason without the penalty, but you still owe income tax on non-medical amounts.

What happens to my HSA if I leave my job or change health plans?

Your HSA stays with you. The account is yours, not your employer's. If you change jobs or switch to a non-HDHP plan, you keep the money in the account and can continue to use it for may have access to medical expenses. You just cannot make new contributions once you are no longer on an HDHP. If you later re-enroll in an HDHP, you can resume contributions.

Can I have an HSA and a Flexible Spending Account (FSA) at the same time?

Generally no. The IRS does not allow you to contribute to both an HSA and an FSA in the same year. However, there is an exception for limited-purpose FSAs that only cover dental and vision expenses — you can have both if your FSA is limited-purpose. Check with your employer's benefits administrator to see what options are available.

How much can I contribute to an HSA each year?

The IRS sets annual contribution limits that change each year. For 2024, the limit is $4,150 for individual coverage and $8,300 for family coverage. If you are 55 or older, you can contribute an extra $1,000 per year. Your employer may contribute on your behalf, and those contributions count toward the limit. Check HealthEquity or the IRS website for the current year's limits.

Is there a penalty if I do not use my HSA money by the end of the year?

No. Unlike FSAs, HSA money rolls over indefinitely. There is no "use it or lose it" rule. You can let the balance grow year after year and use it whenever you need it, even decades later. This makes HSAs more flexible than FSAs for long-term health savings.