HSAs See Strong Growth

August 5, 2011 (PLANSPONSOR.com) - Health Savings Accounts (HSAs) rose to more than $11.7 billion in June according to a survey by Devenir, an investment firm that specializes in providing investment options for HSAs.

The total number of HSA accounts rose to 6.3 million, a year over year increase of 28%. Assets saw a 31% year-over-year increase, as well as 17% growth so far in 2011.   

A press release said the top five custodians hold over $5.3 billion in HSA assets among almost 2.7 million accounts, accounting for 45% of all HSA assets. HSA custodians retained 20% of customer contributions over the past year.  

The average account balance in 2011 grew to $1,845 from $1,640 at the end 2010, a 12.5% increase. When you eliminate identified zero balance accounts that average rises to $2,016.   

HSA investment assets reached an estimated $860 million in June, a 60% year over year increase and are projected to reach $9.1 billion by end of 2015. The average investment account holder has a $12,462 average total balance (deposit and investment account).   

Devenir projects the HSA market to reach $47.3 billion in assets by the end of 2015, a 37% CAGR over the next five years. Devenir also projects that HSA investment dollars will continue to grow quickly as health savings account user’s balances become larger, representing 19% of all HSA assets by the end of 2015.  

The survey data was collected in July 2011, and primarily consisted of the top 50 custodians in the health savings account market, with all data being collected for the June 30 period.

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