Lively HSA Review 2022: Pros & Cons | Legit & Scam | How it Works

Health is one significant aspect of life that we must be financially stable to handle anytime. And the best way to achieve this is by having a secured Health Saving Account. This is where Lively HSA comes in.

Lively HSA is one of the best HSA providers that offer individuals and groups a platform to save for unforeseen medical circumstances. 

According to, almost 1.2 million Americans have invested their HSAs on Lively. And the number is expected to grow and exceed $20 billion by 2022.

This is because the platform is easy, secure, and free to open. Aside from that, it attaches no fees and charges to individual accounts, which are not common among other HSA providers.

Frankly, with the rate at which the Out-of-pocket healthcare costs are skyrocketing each year, Lively gets you fit for the worst.

Now, to learn more about this platform and what it offers, carefully read this comprehensive Lively HSA review. Meanwhile, you can take a glance at the table of contents below to get an overview of all that this post entails.

Before we proceed, let’s talk about HSA. This is because an understanding of HSA will help you get to understand Lively HSA well.

Before we proceed, let’s talk about HSA. This is because an understanding of HSA will help you get to understand Lively HSA well.

What then is HSA?

HSA is a way of saving for medical emergencies, which always comes with fear and frustration, especially if you are not financially capable.

With this account, you can save on a pre-tax basis to pay for qualified medical expenses. Also, you can pay for things like your deductible, copays, and coinsurance.

Additionally, you can invest your savings in HSA in some funds, which can bring interest and dividends. Some of these tax-free Funds include index funds, mutual funds, individual stocks, bonds, and other investment vehicles.

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Although the interest rates in an HSA are lower than in a savings account, you can save more because your money will not be taxed.

Basically, many financial institutions like banks and credit unions offer HSA accounts, but only but a few of these institutions specialize in excluding tax. One of the few institutions is Lively.

Now, Let’s talk about it properly!

Lively HSA Review

Lively is an enterprise devoted to offering health savings accounts to individuals and the public at large. In short, Lively helps people prepare for tomorrow by making smart decisions about finances and healthcare today.

Also, it provides an easy platform for people to manage the increasing costs of personal health through HSA that permits them to save for today and plan for the future.

Lively Health Saving Accounts for everyone. You can apply as an individual and save for your health while working towards your financial goals. Moreso, you can save as an employer and build a better benefits package that can be applied for individually or as a group.

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How Does Lively Work?

Among all the HSA providers, Lively is the easiest to use. First, give the full detail about your personal and family health plan. Then be sure you are on a high-deductible health plan before opening the account.

In Lively, you can put money in your account in two ways: either you link your account to your bank account, or you do that through regular payroll contributions.

And when you contribute, you can invest the money with FDIC-insured banks or with TD Ameritrade. The FDIC provides you with an account that pays you interest while the TD Ameritrade keeps the money in the hold of the funds in a self-directed brokerage account.

TD Ameritrade’s upside is that you can manage your account with them online easily. And you can be sure that your money is saved with them because they are secured by SIPC. Meanwhile, the downside is that opening an account with them is not free.

The company makes it easy for its customers to access their dashboards. For the dashboard, they can view how much they have contributed so far.

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How much Interest do Lively Pay?

Lively also pays interest on HSA funds that are not invested. As of January Lively accounts earn anywhere from 0.25% to 0.60% of interest depending on how much you have in the account:

  • Less than $2,500: 0.25%
  • $2,500-$4,999: 0.35%
  • $5,000-$14,999: 0.45%
  • $15,000+: 0.60%

What are the Commissions and Fees?

Like I mentioned earlier, Lively is a free platform. There are no hidden fees of any sort. Most of all, the fees include Monthly Maintenance, Account Opening Fee, Account Closing Fee, Funds Transfer (Out/In) Fee, Debit Cards (Up to 3), and they charge the rest at $0.

You might now ask, how do they make their money?

A core aim of any company is to make a profit. Although all the fees and charges at Lively are free, they still have ways in which they make their money.

Some of the ways include:

  • They charge $2.95 for each employee every month from employers.
  • They provide debit cards in which they charge a percentage of merchant fees on transactions.
  • Also, earn interest from your fund that is not invested.

What are the Pros and Cons of Lively?

Lively HSA has both pros and cons. But to be honest, the pros are far more than the cons.

Let’s talk about them one after the other.

The Pros

Below is a breakdown of the pros of Lively.

  • It is easy and safe to use. You can set up recurring or automatic contributions.
  • Opening an account with them is free. So you don’t have to bother about account charges.
  • There is no minimum amount required to open an account.
  • It’s tax-free.
  • It’s 100 percent online. There is no paperwork.
  • Account setup takes as little as 5 minutes
  • Simple and user-friendly platform
  • Offers web access and mobile app.


Here are the cons which serve as downsides.

  • The yield on APR is low when compared to other HSA providers.
  • If you need a Higher deductible health plan, you won’t be eligible to use Lively HSA.

In a nutshell, a High Deductible Health Plan is a health insurance plan that installs a minimum deductible amount for expenses. The specific amounts are usually updated on an annual basis, with a set at $1,350 and $1,400 for individuals, respectively.

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Having seen the many reasons you should an account with this company, I know you are overwhelmed already about joining.

Several people felt the same way too when you got to know about it. But before you delve into it, you need to be sure you are fully qualified to open this account.

Qualifying requires you to have some certain criteria which the following are the major ones:

  • Be 18 years and above.
  • Have a high-deductible health insurance plan on the first day of a month.
  • Must not have a low deductible plan.
  • Enrolled in Medicare.
  • Finally, you cannot be claimed as a dependent on another person’s tax return.

Get Started

If you meet up with the above criteria, lucky are you. All you have to do is follow the steps below to get started.

  • Visit the Lively official website and click on ‘Open Account’.
  • Complete the application form with your personal information.
  • Then, wait for verification which takes a day or two. Once your account is verified, you can log in and start your contributions.
  • To invest with TD Ameritrade, follow their instruction.
  • You can move your money to the broker on your TD Ameritrade account before starting your investments.
  • Finally, apply for a debit card which will take 7-10 days to arrive.

Bottom Line

Lively is the perfect choice in the HSA marketplace. It provides its customers with a lot of investment options. Also, it’s a secure platform with exemplary customer service and your cash is FDIC insured.

So, if you are interested in getting an easy, affordable, and secured Health Saving Account, then Lively is a great option for you.


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