When it comes to investing your HSA, you should put your entire balance into a mutual fund. Avoid keeping any of your funds in a checking account, as you can end up paying high monthly fees for this option. Instead, put all your money into your HSA account, and invest only what you have available.
Another great feature of an HSA is that you don’t have to pay taxes on the funds you contribute. Because they are tax-deferred, you can use them as an “individual retirement account.” After you reach age 65, you can access these funds for medical expenses without paying taxes. There are many different types of investments you can put into your HSA, but you need to make sure you choose one that offers a diverse range of options and minimal fees.