HL Loyalty Bonus A/c & Vantage

Jake'sGran

A couple of weeks ago I noticed I had over £500 in my Loyalty Bonus A/c but when I tried to use it they pointed out that they take out their management fee for holding stocks and shares in an ISA (Max £200 pa). I really only have approx £300. As I have been with them for years I don't feel inclined to check it out.

This seems a messy way of doing things as I had understood their fees were those shown on their half yearly statements. Has anyone else been surprised by this or is it just me who doesn't take enough notice of the small print? Things are never as they seem!

soulsaver

HI JG
If it's the same as the sipp, they dont charge the £200 max thingy if you hold Funds, 'cos the kick back from the fund manager pays for the admin.
They dont get this for shares so they cover their margin with these charges.
However they are pretty steep in the trading charges for shares too. I tend to use HL for funds, and another provider for shares. I know this can be inconvenient but keeps charges down.
I haven't found anybody who is great for both.
I knew of it before trading in shares with them but had forgotten about it until I had the bad surprise, too.

Best

masonic

Yes, that's how it works. Funds attract a 0.1-0.25% annual loyalty bonus, while shares attract a 0.5% annual charge. There are better places to hold your shares. That's the price of convenience I'm afraid.

Jake'sGran

Masonic and Soulsaver

I'm sorry if I confused you both. I have never bought shares through HL, only funds.

I do always assume that the employees there are very bright and can't be wrong but not so long ago an error came to light when I posted something on Banking/Investing. It turned out that they had put an incorrect value for the purchase of a fund 2-3 yrs ago.

I will now check again the secure message I received when I queried the lower figure on the loyalty bonus.

Thank you, I will report back!

masonic

I thought you held Fidelity China SS within HL?? That's classed as a share, for example.

mutley74

masonic wrote: »

I thought you held Fidelity China SS within HL?? That's classed as a share, for example.

HL dont charge for holding this investment trust, they have an exception for this stock.

masonic

mutley74 wrote: »

HL dont charge for holding this investment trust, they have an exception for this stock.

Really? How can you tell whether or not there is an exception? This page seems to suggest only OEICs and UTs are exempt from the charge.

mutley74

masonic wrote: »

Really? How can you tell whether or not there is an exception? This page seems to suggest only OEICs and UTs are exempt from the charge.

you are correct but as an investor of this stock with HL, i have not been charged any AMC. I have been told only charge is when i come to sell. HL waived the buying dealing charge if you buy through the original first time subscription or when the C share issue, at other times the dealing charges applied.

Jake'sGran

masonic wrote: »

I thought you held Fidelity China SS within HL?? That's classed as a share, for example.

Yes, you are right of course.I just read a very comprehensive reply from them about this subject. They say that as they were involved in the launch of the above IT the charge does not apply to that but I do have another Investment Trust taken out years ago i.e. Invesco Perp Income & Growth.

Still learning I'm afraid and beginning to think that for someone who knows as little as I do I have been lucky with my choices. But I will keep a closer eye on things from now on.

Mikeyorks

That's a significant amount in loyalty bonuses - and it's essentially sitting there doing nothing? If you just give them a ring they will transfer it as 'cash' into your account, where you can use it. Obviously not into an ISA - if you've already used your allowance - as it counts against it.

Alternatively (HL site / 'contact us' / 3rd FAQ down the right side - 'How can I withdraw money from the account') log your Bank account with them and (you'll have to leave it 7 days after setting up / amending a Bank account) you can withdraw the cash online. You don't need to send a paper withdrawal form, as most of their site still implies.

utigers

So did you/do you get charged for drawing out your loyalty bonus?