Funds in an HSA are held in a trust and are administered by a bank, insurance company, or other approved Trustee. This institution is often referred to as your HSA Administrator.
Funds in your HSA are invested at your discretion. Typically an HSA will allow you to choose from one or more of the following investment options:
Interest-bearing account
CDs
Money market funds
Mutual Funds
If you are looking to minimize your investment risk, you may want to consider an interest-bearing account; these accounts are FDIC insured. On the other end of the spectrum, mutual funds may provide a greater return, but are more risky, and are not FDIC insured.
