New-santander investment hub

In the near future santander are moving investments to what they call an hub.

Years ago I purchased shares in their "santander investment portfolio, these are going to now, be moved to said hub.

reading my letter that tries to explain, it seems their is an increase in fees.
Hard for me to understand but it seems that i have been paying 0.97% fee, this not to change.
But there is now an extra charge of 0.3%

So that would mean the cost each year would be around 1.2%, is this high for such a fund, or should I be content to accept?
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  • dunstonh
    dunstonh Posts: 116,040
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    The banks have mostly pulled out of financial advice. Mainly as a result of them no longer being able to be paid commission and the high levels of mis-sales they have had. In the fee based world with explicit charging, it does not seem logical to pay for a tied sales rep when an IFA can do it for the same or cheaper.

    What they have been bringing out instead is rather cheeky. They now offer a collection of self select investments where customers pick their own investments which are held on their own platform. You get none of the benefits of advice but are charged a similar figure to advice. If you want to DIY, then you should use a DIY option which would be cheaper.

    Existing investors are being moved on to these new options which usually means you end up even worse off as you have a naff bank fund charged higher than better options.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • RayG
    RayG Posts: 10 Forumite
    Like may more I have received an invitation to join Santander Investment Hub. Is this suitable for someone like me who has no idea of stock investments
  • dunstonh
    dunstonh Posts: 116,040
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    RayG wrote: »
    Like may more I have received an invitation to join Santander Investment Hub. Is this suitable for someone like me who has no idea of stock investments

    i refer you to my previous post. (in summary - suitable: yes - best for you: no)
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • bigadaj
    bigadaj Posts: 11,531
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    RayG wrote: »
    Like may more I have received an invitation to join Santander Investment Hub. Is this suitable for someone like me who has no idea of stock investments

    Think of it as an invitation to an event from a local car dealer, and approach in a similar manner.
  • RayG
    RayG Posts: 10 Forumite
    I might as well invest 20 quid a month in premium bonds. Thanks.
  • bowlhead99
    bowlhead99 Posts: 12,295
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    RayG wrote: »
    I might as well invest 20 quid a month in premium bonds. Thanks.
    Yeah, if you don't mind getting a return that's virtually guaranteed to be nothing for a while and then even once built up to a big amount will statistically give you a return lower than inflation. Whereas investments will statistically give you more than inflation.
  • Asghar
    Asghar Posts: 433
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    Came across this old thread after googling because a friend of mine wants to invest in an ISA for the first time.

    He is only looking to invest £50 per month in a global fund and the Santander Investment Hub seems ideal. The 0.35% platform fee includes paper statements and there's also no exit or transfer fees. There are cheaper platforms but they have larger minimum lump sum and monthly payments.

    Are the past negative comments because people already with a Santander ISA were being moved to this new platform and asked to pay the extra platform charge?
  • enthusiasticsaver
    enthusiasticsaver Posts: 15,445
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    Banks are notoriously bad at managing investments. They charge high fees and I would personally research diy. That is how I started off initially investing £250 per month in a vanguard lifestrategy fund via Cavendish investments. There is a lot of information online for novice investors. Monevator, trustnet, morning star or the Hargreaves Lansdowne websites.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
  • Asghar
    Asghar Posts: 433
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    Banks are notoriously bad at managing investments. They charge high fees and I would personally research diy. That is how I started off initially investing £250 per month in a vanguard lifestrategy fund via Cavendish investments. There is a lot of information online for novice investors. Monevator, trustnet, morning star or the Hargreaves Lansdowne websites.

    They offer funds from other fund managers as well, although not quite as comprehensive as the major platforms providers.

    We were looking at the Old Mutual Global Equity and Henderson Global Growth funds, which they provide on their platform.
    Surely as a platform provider for a simple £50 per month investment, it has to be better than Hargreaves Lansdown? The platform is slightly cheaper and there are no closing down or transfer fees.
  • Asghar
    Asghar Posts: 433
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    Just checked on Cavendish and they offer £50 per month minimum but a lump sum top-up is £1000 whereas with Santander it's only £100.

    I'll leave it with him anyway.
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