re-investing dividends in an ISA

moneylover

Lokolo wrote: »

HL don't give you anything extra apart from the fact you have buy shares from foreign markets - whereas X-O only allows UK trades.

Dividends can be paid inside the ISA which you can then withdraw or use to buy more shares.

If you use dividends to buy more shares what do you pay with HL? See Barak and Theyarvl's posts they are paying peanuts whilst X-O charges the fullwhack each time of £5.95. But neither poster says who they use. Unless you are never going to re invest dividends this is good reason not to useX-O and I certainly wish I hadnt as am stuck now and cannot realisticallly re-invest dividends. I guess I will have to bite the bullet at some stage and sell and repurchase - once I know who to buy with!

barak

moneylover wrote: »

If you use dividends to buy more shares what do you pay with HL? See Barak and Theyarvl's posts they are paying peanuts whilst X-O charges the full whack each time of £5.95. But neither poster says who they use.

The shares [which include Investment Trusts with the same low re-investment charges] in my ISA account are in a scheme now administered by Halifax Share Dealing. [The Unit Trusts/OEICS are held elsewhere].

westy22

Interactive Investor (iii) are also part of Halifax Share Dealing Service and low cost for dividend reinvestment.

lr1277

I am fairly certain you can transfer S+S isa's to other providers, much like transferring cash isa's. I am not sure of the mechanics of it in terms of the buying/selling/transferring of shares. Also most providers levy a leaving cost per share.

But if you find a S+S provider that meets your needs, I think you can transfer your ISA('s) to maintain your accumulated tax advantages, instead of closing down accounts and opening new accounts.

HTH.

moneylover

barak wrote: »

The shares [which include Investment Trusts with the same low re-investment charges] in my ISA account are in a scheme now administered by Halifax Share Dealing. [The Unit Trusts/OEICS are held elsewhere].

Thanks you Barak - does the same cheap re-investment apply for any shares and investment trusts with Halifax Share Dealing that are held outside an ISA?

moneylover

lr1277 wrote: »

I am fairly certain you can transfer S+S isa's to other providers, much like transferring cash isa's. I am not sure of the mechanics of it in terms of the buying/selling/transferring of shares. Also most providers levy a leaving cost per share.

But if you find a S+S provider that meets your needs, I think you can transfer your ISA('s) to maintain your accumulated tax advantages, instead of closing down accounts and opening new accounts.

HTH.

Yes, unfortunately x-o want £50 to CLOSE an ISA and I havent investigated what transfer costs a new provider may impose other than there normal ISA charge for existing customers.

Ark_Welder

moneylover wrote: »

Thanks you Barak - does the same cheap re-investment apply for any shares and investment trusts with Halifax Share Dealing that are held outside an ISA?

Yes. http://www.halifax.co.uk/sharedealing/charges/admin-charges/


Occasionally, some S&S ISA providers have special deals where they will bear the costs of transfering to them - usually up to a set amount. Might be worth keeping your eye open for them.

lr1277

moneylover wrote: »

Yes, unfortunately x-o want £50 to CLOSE an ISA and I havent investigated what transfer costs a new provider may impose other than there normal ISA charge for existing customers.

My suspicion is that the new ISA provider will welcome you with open arms and not charge you anything for transferring in.
Some ISA providers charge for taking money (e.g. profits/dividends) out of the ISA or the attending trading account.
And as you have found, there is usually a charge for closing/transferring accounts.

Unfortunately I am not an expert in this matter so cannot provide further information.

Special_Saver2

You might want to look at post 3 of my Low cost S&S ISAs thread. I have tried to summarize all the charges and features of the different low cost providers there. Generally, stockbrokers will not charge you anything to transfer in but they charge if you want to transfer out.

As mentioned above, stockbrokers will sometimes offer to reimburse the costs of you transferring out from another provider. Those offers come and go so you have to wait and keep your eyes open for them.

SS2