Opening H&L Account Tomorrow

Joey122

Well I ve been a bit of a moron - I ve had a lot of money sitting in a cash account earning 6% which after tax is pretty abysmal.

I m going to at leatst open up H&L ISA with 4K ISA allowance.

Does anyone know the following:
1) Can you send 4K to H&L and then when markets move in your favout instruct them to buy the unit for you?

2) Or is it depenedent on when they process your cheque?

Thanks - This site rocks!

Aegis

I personally deposited using a debit card, but the basic idea is that as long as there are funds available to invest, you can put in a "buy" order. The purchase will usually go through either the next day or the day after that depending (I think!) on the other orders going through at the time.

[Deleted User]

Hi,

I presume when you say H&L, you mean HL (Hargreaves Lansdown), if not then disregard the following, as it will be meaningless.

You say you are investing 4K, the ISA allowance is 7K, so again I presume that you already have 3K in a mini cash ISA.

You can deposit money and leave it as cash until you decide when and where to invest it, earning a bit of interest at the same time.

The following is from Vantage Key Features document.

1) What will happen to cash held in my PEP, ISA and Fund & Share Account?

We will pay you interest on the money while you hold it as cash. The rate of interest will depend on
the value of the cash you hold, and the current rates are available on request. Cash balances will be held
in a client trust account.

2) When will fund deals be placed?

Orders placed by clients for unit trusts or OEICs will be placed by the end of the working day follow-
ing the day of receipt and the dealing price will be determined at the next valuation point for the fund.
When you sell units in a unit trust, the unit trust manager can apply a cancellation price to value the
fund. This can result in a lower selling price than if a normal bid price was applied.

caliston

Note they're a bit sharp with their interest paying on cash they hold:

Gross rates:

£7,000+  	5.50%
£3,000 - £6,999 4.50%
£500 - £2,999 	3.00%
£1 - £499 	1.00%

But these are per tier - so if you put in £4K you get £1000 at 4.5%, £2500 at 3% and £500 at 1% - average 3.125%. Also, and I don't quite understand this, tax is deducted from interest in the ISA (is that because it's the share bit of the ISA so isn't supposed to have cash in it?).

So if you have quick access to the money (say at a savings account at the same bank as your current account) you might be advised to go the debit card route to maximise your interest.

Joey122

Thanks guys,

WHat does this mean?

When you sell units in a unit trust, the unit trust manager can apply a cancellation price to value the
fund. This can result in a lower selling price than if a normal bid price was applied.

In non political terms what price would you get if you sold your ISA?

[Deleted User]

Hi,

think it's only applied if there is a big sell off.

Have a look here for various financial definitions.