Hargreaves Landsdown - new charges

atypical

They cite admin costs as the reason for the change. But that doesn't make much sense as it is all calculated and applied automatically (as you would expect). The only manual part of the process I can think of is withdrawing or transferring whatever has built up as loyalty bonus. They could have solved that by raising the minimum withdrawal amount.

But that's being naive and assuming that the decisions is really solely based on admin costs when it almost definitely isn't.

jimjames

The loyalty bonus is peanuts on holdings under £1k anyway so I can't see that it is something that would make any difference to most investors. £1.50 per year on a £1k holding isn't a deal breaker to me.

le_loup

You are right of course. It's just all this corporate bullsh1t about it being for entirely for our benefit. I was once in an IT savings scheme when they stopped paying interest on cash held. The reason? "Clients objected to receiving small amounts of cash into their accounts"! I offered to mop up others peoples interest if they didn't want it ... surprisingly, they didn't take up my offer.

jimjames

jamesd wrote: »

As I read it that is per fund holding in each sub-account, so you could have almost £3,000 holding of one fund and still have the price increased (Two ISAs and the fund and share account). No price rise for the SIPP because that already doesn't have any commission rebate.

All ISAs with HL are treated as one so in this case your holding would qualify for the rebate. Share/fund account and ISA would still be separate though so could be an advantage to organise so holdings of a fund are in one or the other not split across.

Totton

I find it easier to keep funds specific to each account. My reason for doing this is simply that it makes it much easier to track the trail commission which is something that I add to each holding as income.

Regards,
Mickey

DavidHayton

The documentation that I have received from HL has always indicated a minimum holding of £1000 per fund, so I don't think that restricting the loyalty bonus is unreasonable. But they need watching like a hawk. Thanks Reaper!!
I am surprised that they have taken so long to reduce their sharedealing charges. They are still not the cheapest, but perhaps they will retain the business of folks holding a few shares or ITs amongst a fund-based portfolio. I moved my Investment Trust holdings elsewhere earler this year. Wish I'd waited now ... but c'est la vie!

Best wishes
David

le_loup

Many people buy monthly an may thus take some time to reach £1K in any one fund.

margaretclare

mr_fishbulb wrote: »

I have 10 funds and only 2 are over 1K. However I've only made just over £10 in the 3 years I've been with H-L so it's not a massive loss.

I don't know how you've managed to make only £10 in 3 years. Maybe you should have a look at the funds you're with and think about doing a switch. I find they're very helpful - they don't, obviously, give advice, but what they do is to give a lot of useful information. Have you read Mark Dampier's recent article headed 'The hare and the tortoise'?

Ark_Welder

margaretclare wrote: »

Maybe you should have a look at the funds you're with and think about doing a switch.

The level of the discount should not be a driver to fund selection

mr_fishbulb

margaretclare wrote: »

I don't know how you've managed to make only £10 in 3 years. Maybe you should have a look at the funds you're with and think about doing a switch. I find they're very helpful - they don't, obviously, give advice, but what they do is to give a lot of useful information. Have you read Mark Dampier's recent article headed 'The hare and the tortoise'?

I didn't mean £10 in total gains from the funds, I meant just the money I get from the loyalty bonus.