Health Savings Account Balances Grow But Only 18% Invest Their Funds

The average HSA balance increased 16.5% from $4,747 in 2023 to $5,532 in 2024, outpacing a 5.9% increase in out-of-pocket health care spending during the same period. But only 18% of health savings account (HSA) holders in 2024 invested any portion of their account balances. Most kept their funds in cash accounts that typically earn minimal interest. HSAs allow accountholders to invest their balances, with investment gains accumulating tax-free and withdrawals for qualified medical expenses also exempt from federal income taxes.However, the average HSA balance remained below the 2025 out-of-pocket . . .