HSA Investment fees normal w/ Gulf Coast Ed Credit Union?

[Stillwater1971]

I currently have an HSA plan through my employer(School District), but I don't know if the fees with investing my HSA is too high. The HSA funds is sent to a credit Union called "Gulf Coast Educators Federal Credit Union and the Credit Union offers a 3rd party on their website called, myHSAinvestments to handle the HSA Investments.
There are some fees through the 3rd party that's in addition to the standard expense ratio of the investment fund. It does have Vanguard Index Funds which is great since Vanguard is my Brokerage and as far as I know, Vanguard doesn't have their own HSA option (why?!?)

And this is the fees incurred by the 3rd party:
0.50% Annual Fee
Fee invoiced quarterly (0.125% per quarter or $1.25 per $1,000 of account value) on first $100k of myHSAinvestmets' assets. The minimum quarterly myHSAinvestments account service fee is $5.00.

I can't tell if the $5 minimum is in addition to the Annual Fee.

If another option is transferring those funds directly to an HSA Broker like Fidelity without using a 3rd party, would there likely be additional fees from either Fidelity or my Credit Union?

I'm just trying to minimize fees if possible, but if this is the norm with HSAs, then I can accept that.

Thank you.

[steadyosmosis]

I currently have an HSA plan through my employer(School District), but I don't know if the fees with investing my HSA is too high. The HSA funds is sent to a credit Union called "Gulf Coast Educators Federal Credit Union and the Credit Union offers a 3rd party on their website called, myHSAinvestments to handle the HSA Investments.
There are some fees through the 3rd party that's in addition to the standard expense ratio of the investment fund. It does have Vanguard Index Funds which is great since Vanguard is my Brokerage and as far as I know, Vanguard doesn't have their own HSA option (why?!?)

And this is the fees incurred by the 3rd party:
0.50% Annual Fee
Fee invoiced quarterly (0.125% per quarter or $1.25 per $1,000 of account value) on first $100k of myHSAinvestmets' assets. The minimum quarterly myHSAinvestments account service fee is $5.00.

I can't tell if the $5 minimum is in addition to the Annual Fee.

If another option is transferring those funds directly to an HSA Broker like Fidelity without using a 3rd party, would there likely be additional fees from either Fidelity or my Credit Union?

I'm just trying to minimize fees if possible, but if this is the norm with HSAs, then I can accept that.

Thank you.

No fees on my HSA at Optum (except ER of fund VITSX that I invest in).
[To avoid the monthly account maintenance fee of $2.50, I do keep the minimum required amount in cash (not invested in VITSX).]

[Nate79]

Those fees are high. No need to pay 0.5%, just do a transfer periodically to Fidelity.

[Stillwater1971]

Those fees are high. No need to pay 0.5%, just do a transfer periodically to Fidelity.

I was just looking at Fidelity just now. It looks like Fidelity does not charge any extra fees(except for expense ratios), is this correct? but there appeared to be a "Bookeeping Fee" that is charged to the employer? I don't know if that would be passed down to me since my employer doesn't use Fidelity? And that's assuming there is a fee for it?

[Nate79]

Those fees are high. No need to pay 0.5%, just do a transfer periodically to Fidelity.

I was just looking at Fidelity just now. It looks like Fidelity does not charge any extra fees(except for expense ratios), is this correct? but there appeared to be a "Bookeeping Fee" that is charged to the employer? I don't know if that would be passed down to me since my employer doesn't use Fidelity? And that's assuming there is a fee for it?

Fidelity personal HSA has no fees at all. You can open this on your own, it has nothing to do with your employer. You will need to initiate a transfer at Fidelity to transfer money from your current HSA to Fidelity.

[Stillwater1971]

Those fees are high. No need to pay 0.5%, just do a transfer periodically to Fidelity.

I was just looking at Fidelity just now. It looks like Fidelity does not charge any extra fees(except for expense ratios), is this correct? but there appeared to be a "Bookeeping Fee" that is charged to the employer? I don't know if that would be passed down to me since my employer doesn't use Fidelity? And that's assuming there is a fee for it?

Fidelity personal HSA has no fees at all. You can open this on your own, it has nothing to do with your employer. You will need to initiate a transfer from Fidelity to your current HSA.

That's great. Thank you Nate79 for the advice and savings in the long run.

[ekid]

"You will need to initiate a transfer from Fidelity to your current HSA."

Whut?

This should probably read; You will need to initiate at Fidelity a transfer from your current HSA.

[Nate79]

"You will need to initiate a transfer from Fidelity to your current HSA."

Whut?

This should probably read; You will need to initiate at Fidelity a transfer from your current HSA.

Thanks. Much better worded. I edited my post.