Child Savings - suitable account
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luke222010 wrote: »How much are we talking when you say very expensive? Are you able to give a comparative example against someone like CSD?
Cheers,
L.
Hl are 0.45% on funds for comparison.0 -
we use friendly society savings plans, for which £25/m is perfect.
new baby on the way, and will set up a new plan for him as soon as he arrives
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Can anyone explain whether a fund would be subject to transaction charges, i.e. would there be a charge for each £25 invested?
Moneywise comparison of HL & CSD platforms state the following transaction charges but they mean little to me...
HL:
There are no transaction charges for Unit Trusts or OEICs. Online share dealing is £5.95 per deal. Deals by telephone or post are charged at 1% subject to a minimum charge of £20 and a maximum of £50. Equity regular savings - £1.50 per stock per month Available on FTSE 350 shares and selected investment trusts subject to a minimum of £25 per stock per month.
CSD:
Dealing commission:- 1.85% on first £10,000 0.50% on next £90,000 0.25% on the balance Minimum commissions of £25 on UK traded and £75 on overseas trades apply.0 -
Does anyone have any advice with regards to TDDirect ?
I am looking at this broker as the one to use to set my childs JISA up - they look the cheapest to invest in a VLS60% fund.
Any info would be appreciated.
Cheers,
L.0 -
I use TD for my ISA, a dealing account, and second dealing account designated for nephew. Service is fine.
My pension is with AJ Bell Youinvest who have a lower percentage charge on funds, but they have a transaction fee on every purchase which would be too costly for you at £25pm (whereas TD and HL and CS don't)
Basically if you use TD to hold a fund like LifeStrategy it costs 0.3% for the platform fee, where HL is 0.45%. So, TD wins in that area. However, on only £1000 invested you are talking £3.00 vs £4.50 a year. It obviously mounts up to bigger numbers when you have more invested and for multi-year periods, as you can see HL is 50% more for doing the same thing.
Presumably you don't need bells and whistles and great customer service as you are only buying one fund and holding it. And you don't need pretty charts and advertorial and junk mail telling you what to invest in, as you already decided what to invest in. Still, some people like the "nice for newbies" customer service at HL when it's only costing them a few pounds a year.
My dad uses HL though hopefully he will agree to move later this year when he puts his next slug of ISA money in, as he has a lot more than £1k invested to get him through retirement.0 -
bowlhead99 wrote: »I use TD for my ISA, a dealing account, and second dealing account designated for nephew. Service is fine.
My pension is with AJ Bell Youinvest who have a lower percentage charge on funds, but they have a transaction fee on every purchase which would be too costly for you at £25pm (whereas TD and HL and CS don't)
Basically if you use TD to hold a fund like LifeStrategy it costs 0.3% for the platform fee, where HL is 0.45%. So, TD wins in that area. However, on only £1000 invested you are talking £3.00 vs £4.50 a year. It obviously mounts up to bigger numbers when you have more invested and for multi-year periods, as you can see HL is 50% more for doing the same thing.
Presumably you don't need bells and whistles and great customer service as you are only buying one fund and holding it. And you don't need pretty charts and advertorial and junk mail telling you what to invest in, as you already decided what to invest in. Still, some people like the "nice for newbies" customer service at HL when it's only costing them a few pounds a year.
My dad uses HL though hopefully he will agree to move later this year when he puts his next slug of ISA money in, as he has a lot more than £1k invested to get him through retirement.
Thanks for the reply. This is exactly what I was looking for!0 -
As usual you promote friendly society plans which are inflexible with high charges. Other options mentioned already are far better value.we use friendly society savings plans, for which £25/m is perfect.
new baby on the way, and will set up a new plan for him as soon as he arrivesRemember the saying: if it looks too good to be true it almost certainly is.0 -
My understanding is I need to open my own TD account before I can open a JISA account for my child.
OIC's state below that any account that has a balance less than £5100 will be subject to £30+VAT yearly charges. I don't plan to invest in anything, I purely want to open a JISA for my child. Am I right in thinking the below applies to me? Or does it only apply to someone who has an account and is actively investing?
Online Investment costs
£0 account fee when you either have an ISA balance of £5,100 or more, or have a Regular Investing (monthly investment) facility set up. There’s a £30.00+ VAT per year or part year if not. Share dealing and other rates and charges.0
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