Deficit On Stocks And Shares ISA

ramper77

Hello,

I've got about £9,000 in a S&S ISA with Charles Stanley for a couple of years now. The other day I received an email, saying that following the deduction of platform fees, I now had a deficit of £30 on my account and needed to pay money in now to cover it.

Can anyone explain why or if I need to do this.

Thanks in advance.

Vortigern

Charles Stanley Direct charge a fee of 0.25% per annum, billed monthly.

If there is cash in your ISA they will deduct the fee from that automatically.

If there is no spare cash, they will bill you, that's what they've done and you should pay the bill.

ramper77

Vortigern wrote: »

Charles Stanley Direct charge a fee of 0.25% per annum, billed monthly.

If there is cash in your ISA they will deduct the fee from that automatically.

If there is no spare cash, they will bill you, that's what they've done and you should pay the bill.

Thanks for the reply. Why don't they just take the money from my yearly profits, or isn't that counted as cash?

dunstonh

Why don't they just take the money from my yearly profits, or isn't that counted as cash?

Because they dont know which assets to sell. That is why you maintain a cash balance if typically around 2% or use income units.

jamesd

Eventually they would probably pick something to sell for you but it's better for you to either make that decision or pay.

The advantage of paying is that fees for an ISA can be taken from non-ISA money so it lets you avoid withdrawing the fee money from the ISA into their pocket. I don't know if they allow this, though.

Vortigern

jamesd wrote: »

The advantage of paying is that fees for an ISA can be taken from non-ISA money so it lets you avoid withdrawing the fee money from the ISA into their pocket. I don't know if they allow this, though.

They do. CSD allow fees to be paid from non-ISA money, if paid within a specified timescale.

sorcerer

I like to keep about 1 years worth of money to pay fees in my accounts.