Best Invest v Hargreaves Lansdown

max11

kar999 wrote: »

I understand my exit fees would be paid for leaving HL as it wont cost more than £500.

how much are they?

KTF

le_loup wrote: »

Don't forget H-L's loyalty bonus.

Out of interest, can you re-invest the loyalty bonus into the Vantage ISA or does it count as part of your ISA contribution for that year so could take you over the limit if you have already invested the full amount?

le_loup

No. It's not part of the ISA so you can't put it back in.
I do remember, I think on here, that someone has disputed that condition and H-L are revisiting.

max11

saveonarola wrote: »

It's £12.50+VAT per quarter custody charge for each account that contains non-commission paying funds,

Many thanks for your post.
So, you would actually pay £50+VAT per year for holding only HBSC index trackers, is that correct?
if not what are these non-commission paying funds?

iii seems to be the one with lowest fees for ISA (not sure if yo trade in shares), while they charge £120 per year within a SIPP!

psychic_teabag

The HSBC trackers do pay a little commission, I think. Or maybe it's a platform fee. Anyway, just enough to keep them from incurring the Best custody charge. (I thought the HSBC gilt tracker did incur the fee, but checking now, it seems that it doesn't.)

Each fund fact sheet tells you whether the custody fee is applicable.

eg the vanguard funds do incur the fee. As do shares and etfs and things, I think.

max11

very true! index trackers generally do not incur in that charge, and HSBC ones does not anyway.

I am not sure what to choose between iii and select now !

jimjames

One thing to bear in mind is that you are likely to be out of the market while the transfer takes place. With the current volatility you could easily lose more than £300 in rise or falls during the time you are out. My transfer from HL to Cofunds took nearly 2 weeks - of rollercoaster rides with the market!

max11

Don't they transfer the funds as they are?

gadgetmind

max11 wrote: »

Don't they transfer the funds as they are?

You can do "in specie" transfers, but it can cost more (often a per fund charge) and some providers don't (yet) allow in specie transfers out.

I've done both in the past and "in specie" is a lot less stressful.

Red_Herring

A couple of warnings regarding HL's service:

If you ask for single payments, such as cash lump sums on entering drawdown, or individual one-offs, HL use the stone age BACS system, not direct payment. Payments can take 5 days to clear and the lost interest on large sums is enough to buy a decent meal

if you accept a cash back from HL, there is a clause allowing them to reclaim the cash back if the funds are withdrawn within a year. Reasonable enough you may think.....but this applies to any funds used to purchase an annuity, so if you are transferring in just before retiring, and intend to take an annuity as part/all of your retirement strategy, bear this in mind.