Interactive investor price hike

greenglide

I could also see no mention of being able to leave without penalty fees.

people who are / were TD customers always had the option to exit without charges. This facility ends in a year's time - this is the penalty free exit that is referred to.

Anyone who is / was an II customer has always been subject to a fee on exit, nothing changes there.

I only have ITs with TD and am considering moving, I might even move to HL.

silvermum

darren72 wrote: »

I've had two e-mails (which to me look identical) from Interactive Investor. I hold a trading account, ISA and a SIPP.

I currently pay a £144 per year SIPP fee with no additional charge for the ISA and trading account.

I couldn't work out from the e-mails how this price increase is affecting me. Will I now pay a fee for each account?

I could also see no mention of being able to leave without penalty fees.

Anyone have any ideas ?

darren - I am in a very similar situation - SIPP on old pricing structure and Trading account and ISA (also two JISAs, but let's keep those separate for the moment). I've only ever paid the £144 (no ISA fee, but nor did I receive commission credits)

I spoke to II today and they have confirmed by email that the old SIPP rate (£120 + VAT = £144) is being replaced by a new rate of £120 incl VAT., paid in advance.

I'm still not exactly clear about the trading account/ ISA (and their reply email didn't answer my question!) I get the impression that on top of the SIPP fee we will be charged the quarterly £22.50 (£90/year) fee which is then returned in commission credit.
Two points mentioned were:
- you'll be allowed to carry forward up to £90 in commission credit at any time (but not more)
- this can be used across any of your adult accounts - SIPP, ISA, Trading account (but not JISA).

Hope this helps.
Can't believe how shockingly bad the communication about this is. The guy at the customer call centre was as helpful as he could be, but admitted they'd just been given details of the new pricing structure in the last couple of days, and were still 'finding their way around it'

darren72

silvermum wrote: »

I spoke to II today and they have confirmed by email that the old SIPP rate (£120 + VAT = £144) is being replaced by a new rate of £120 incl VAT., paid in advance.

I get the impression that on top of the SIPP fee we will be charged the quarterly £22.50 (£90/year) fee which is then returned in commission credit.

Thanks for your reply.

That is my concern that these will be in addition to the SIPP fee. If that is the case then instead of it costing £144 per year it would now cost £324. More shockingly I don't think you are able to transfer to another provider without having to pay their transfer fees. If this is the case, how is it fair that a company can more than double the fees and if you are happy they charge you to move elsewhere !?

Galileo_Figaro

I'm with Telegraph Investor (because of low fees, not because it's my favourite newspaper!). This change will roughly triple my fees, so I want to move. This is my first experience of dealing with such a move.

They charge £15 per line to transfer out. I only have around £5000 invested, so these flat fees are very expensive for me (in relation to profits).

The simplest move to me seems to be to sell out at Telegraph Investor, withdraw the money, put it in a new account with better fees, and hope there isn't any great change in the market during the time difference between selling and buying. Am I missing anything? It's an ISA, but I have plenty of allowance I can't use anyway, so that;s not a problem for me.

LHW99

The simplest move to me seems to be to sell out at Telegraph Investor, withdraw the money, put it in a new account with better fees, and hope there isn't any great change in the market during the time difference between selling and buying. Am I missing anything? It's an ISA

Even if the ISA limits aren't important, it may be simplest to convert to cash as said, and then transfer directly from Telegraph, rather than taking the money out first.

silvermum

darren72 wrote: »

That is my concern that these will be in addition to the SIPP fee. If that is the case then instead of it costing £144 per year it would now cost £324.

How did you calculate the £324?
I didn't get the impression from the information sent that there would be a separate ISA fee under the new pricing? (I read something about it being a 'Trading and ISA' account?)
So I was assuming costs would become:
SIPP: £120 (incl VAT)
Annual Fee (Trading/ISA): £90 with all refunded as commission credits.

I need to go back and scour the small print again! :eek:

darren72

silvermum wrote: »

How did you calculate the £324?
I didn't get the impression from the information sent that there would be a separate ISA fee under the new pricing? (I read something about it being a 'Trading and ISA' account?)
So I was assuming costs would become:
SIPP: £120 (incl VAT)
Annual Fee (Trading/ISA): £90 with all refunded as commission credits.

I need to go back and scour the small print again! :eek:

I had assumed the quarterly fees would apply to each account (SIPP, ISA and Trading) in addition to the separate SIPP fee.

I have asked II this specifically and they got back with a reply that didn't answer the question!

Is there any law/rule that entitled you to transfer out without fee if a company increases prices like this? (As you can with phone/broadband companies) ?

AirlieBird

darren72 wrote: »

I had assumed the quarterly fees would apply to each account (SIPP, ISA and Trading) in addition to the separate SIPP fee.

Why had you assumed that? It couldn't be much clearer that it is a single fee covering all accounts.

Quarterly payment £22.50 per customer*
* Please note, joint accounts are treated as a separate customer and sole name accounts that are not linked will also be charged separately. If you have multiple linked accounts, which you access with one username or account number, you’ll make a single flat quarterly payment covering all those accounts and you can use your trading credits in any of them.

darren72

AirlieBird wrote: »

Why had you assumed that? It couldn't be much clearer that it is a single fee covering all accounts.
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But the SIPP account has a separate fee of £120/year on the new pricing (not just a single fee). Isn't this in addition to the quarterly fee ?

silvermum

AirlieBird wrote: »

Why had you assumed that? It couldn't be much clearer that it is a single fee covering all accounts.

Quarterly payment £22.50 per customer*
* Please note, joint accounts are treated as a separate customer and sole name accounts that are not linked will also be charged separately. If you have multiple linked accounts, which you access with one username or account number, you’ll make a single flat quarterly payment covering all those accounts and you can use your trading credits in any of them.

Where are you quoting this from? I can't find anything in the emails I've been sent, or the new pages on the website which says this?
Are you an existing II customer, or a 'new' TD one?

(In a telephone conversation with II yesterday they told me I wouldn't be able to use my commission credits for my JISA accounts - this seems to contradict what you've posted above? )