Hargreaves Lansdown Sipp Closure Fees

benj111

I'm looking into moving my SIPP away from H-L, their fees aren't the best, unfortunately they charge an account closure fee of £25 and a fee to transfer cash/shares out of £25 each.

what is to stop me just transferring my money out and not closing the account, thus saving £25? H-L only charges a % fee and 0.45% of 0 is 0. I've checked the small print and haven't spotted anything, has anyone any experience?

TcpnT

Don't know for sure but I suspect that if you transfer your full balance to another scheme they will treat that as an account closure and make the charge anyway

coyrls

benj111 wrote: »

I'm looking into moving my SIPP away from H-L, their fees aren't the best, unfortunately they charge an account closure fee of £25 and a fee to transfer cash/shares out of £25 each.

what is to stop me just transferring my money out and not closing the account, thus saving £25? H-L only charges a % fee and 0.45% of 0 is 0. I've checked the small print and haven't spotted anything, has anyone any experience?

How would you transfer out and not close the account? Once you set a transfer in motion, account closure follows the transfer. There is no method of managing the transfer of a SIPP yourself; it must be done by H-L.

zagfles

IIRC they have a lower limit on the value, something like £1000, it's somewhere in their T&Cs I think.

benj111

Ha I've found it

T&C
A32 - termination and closure
"Where an Account belonging to you has a valuation of less than £250
and has been inactive for two years or more we reserve the right to
close the Account and send you the balance, less the Account closure
fee and any other charges that are due.
If you reduce or give the instruction to reduce the level of cash or
stock in your Account to a value below £50, we reserve the right to
close your Account and send you the balance of the Account less the
Account closure fee."

Don't know why there's 2 different values, or what 'inactivity' is classed as in this context.

Thanks everyone.

dunstonh

benj111 wrote: »

Ha I've found it

T&C
A32 - termination and closure
"Where an Account belonging to you has a valuation of less than £250
and has been inactive for two years or more we reserve the right to
close the Account and send you the balance, less the Account closure
fee and any other charges that are due.
If you reduce or give the instruction to reduce the level of cash or
stock in your Account to a value below £50, we reserve the right to
close your Account and send you the balance of the Account less the
Account closure fee."

Don't know why there's 2 different values, or what 'inactivity' is classed as in this context.

Thanks everyone.

1 - less than £250 and inactive for two years or more
2 - less than £50 with no required timescale.