Lively HSA Review

There are many HSA account providers out there, but only Lively offers a truly free HSA account with no HSA fees.  Seriously. No maintenance fees, administrative fees, overdraft fees, termination fees, or any other hidden charges for that matter. I love using Lively for my HSA, and that’s my I am writing this Lively HSA review.

Now I know you might be skeptical—believe me, I was too at first.  It almost sounds too good to be true.  Where’s the catch, right? But after having an HSA with Lively since early 2018, I’ve had nothing but a positive experience with Lively and would recommend them to anyone.

This Lively HSA review will not only discuss why Lively is the best HSA provider, but will also explain how Lively stands out from all other HSA administrators.

Lively HSA Review

What is Lively?

Lively is a San Francisco based HSA administrator.  Most HSA administrators are banks. However, that’s where Lively is different. Lively is not a bank, but rather a software company.  Founded in 2016, Lively outsources its financial and investment needs, which ultimately leads to zero HSA fees for you.

In addition, Lively has no minimum balance requirement. That means that you can open an HSA with Lively with any amount of money.

Who is Lively For?

Lively is an ideal HSA administrator for individuals and employers alike.

Individuals with a Lively account have the option of investing their HSA funds through TD Ameritrade for free. Prior to December 2018, Lively charged a $2.50 per month fee for investing. This is no longer the case as investing your HSA funds with Lively is now 100% free.

If your employer has already selected an HSA administrator for you, you may still be able to open an HSA with Lively.  You will have to work with your employer if they contribute to your HSA and see if it’s possible to open an individual account with Lively.

In all other cases, as long as you have a high deductible health plan, you should be able to open an HSA account with Lively.

Investing Your HSA with Lively

If you choose to invest your Lively HSA funds, which I urge you to do so, you will do so through the self-directed TD Ameritrade investment platform.  Self-directed here means that you are fully in charge of picking investments and executing those trades.

Now this is where most people will get cold feet and choose not to invest their HSA. Either they are scared of investing, or they discover that TD Ameritrade charges $6.95 for buying or selling equities.

If I still have your attention, please know that:

  1. TD Ameritrade has hundreds of commission-free ETFs to choose from. This means you NEVER have to pay the $6.95 commission per trade.
  2. You shouldn’t be investing your HSA funds in individuals stocks anyway unless you really know what you’re doing.
  3. There are dozens of low-cost ETFs with teeny tiny expense ratios within the TD Ameritrade platform.

Let me give you some quick investment advice for beginners.  A great way to start investing your HSA with Lively is to pick a single, diversified, commission-free, low-cost ETF.  For example, I invest 100% of my Lively HSA money in SPTM—a SPDR Portfolio Total Stock Market ETF. If you never heard of it, that’s okay. Just know that at 0.03%, SPTM has one of the lowest expense ratios of all the TD Ameritrade commission-free ETFs.

This simple investment approach is perfect because the SPTM ETF is commission-free, low-cost, and diversified. SPTM essentially aims to perform similar to the U.S. stock market, and historically U.S. stocks trend up over the long run.

Free HSA with Lively

Even after reading the above section, if investing your HSA is still not something you’re interested in, you can open a free HSA account with Lively where you will earn nominal interest.

The Lively interest rate varies depending on your HSA balance according to the following table.

Lively Interest Rates

HSA BalanceInterest Rate (APY)
Under $2,5000.25%
Under $5,0000.35%
Under $15,0000.40%
Over $15,0000.60%

As one last attempt to convince you to invest your HSA, let me remind you about the HSA triple tax advantage.  Not only are HSA contributions made pre-tax, but earnings and withdrawals for qualified medical expenses tax free as well.

The bottom line is that you will earn interest with a free Lively HSA account. While this interest is untaxed, it is minimal compared to what you could be making through investments. That’s why you should consider investing your HSA for free with Lively.

Lively HSA Review: The Best Health Saving Account

Kudos to Lively for disrupting the money-hungry HSA administrator industry and offering a fee free HSA account to everyone.  Regardless of if you are looking to invest your HSA, Lively is going to be your best choice. Most other HSA administrators will charge you a monthly or annual fee for access to what Lively gives you for free.

I’ve done countless hours of research into finding the best health saving account, and it’s my opinion that Lively is hands-down the best HSA administrator.

Whether or not you choose Lively as your HSA administrator after reading this Lively HSA review, I congratulate you for investing in your future health.  Let me know in the comments below if you choose Lively as your HSA administrator, and if so, what your experience with Lively has been.

Stay healthy my friends!

Invest in your health with an HSA. Open a free Lively HSA and start saving today.

Tony Florida

With a strong software engineering background, Tony is determined to leverage the internet to positively impact as many people as possible. Discover why Tony quit his dream job to pursue this mission. You can send Tony a message here.

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