Hargreaves Landsdown Question

MonroeM

cloud_dog wrote: »

So, for anyone interested I can corroborate what NorthernGeezer has previously stated, that cash is treated as part of the 'whole' / investments. Extract from Fidelity response below:

Our service fee is calculated using the total value of your investments including the cash component with Fidelity Personal Investing. The service fees is calculated on the total value of the portfolio and deducted from each account separately.

Well that's confirmed, thank you NorthernGeezer and cloud_dog for clarifying. I must admit it is slightly ambiguous in the wording and as you said can be taken several ways.

I have only recently started to initiate a transfer of my SIPP to Fidelity because I only want to hold IT's in this part of my investment portfolio. Therefore, the £45 cap is attractive and with no other charges for drawdown etc it is very good. I was going to hold it in cash for the moment (about £140K) and although I will receive a small interest on this amount, the 0.35% admin charge may make me invest sooner rather than later. As I mentioned previously it does seem odd to hand you interest on a cash account on the one hand and then take an admin charge on the other. On my £140K the admin charge would be £490 per annum offset by some interest, (I've no idea how much interest that would be)?

I know HL do not charge to hold cash in a SIPP but does anybody else know if AJ Bell charges to hold cash in a SIPP?

cloud_dog

MonroeM wrote: »

Well that's confirmed, thank you NorthernGeezer and cloud_dog for clarifying. I must admit it is slightly ambiguous in the wording and as you said can be taken several ways.

I have only recently started to initiate a transfer of my SIPP to Fidelity because I only want to hold IT's in this part of my investment portfolio. Therefore, the £45 cap is attractive and with no other charges for drawdown etc it is very good. I was going to hold it in cash for the moment (about £140K) and although I will receive a small interest on this amount, the 0.35% admin charge may make me invest sooner rather than later. As I mentioned previously it does seem odd to hand you interest on a cash account on the one hand and then take an admin charge on the other. On my £140K the admin charge would be £490 per annum offset by some interest, (I've no idea how much interest that would be)?

I know HL do not charge to hold cash in a SIPP but does anybody else know if AJ Bell charges to hold cash in a SIPP?

Yes, the same reason why I have moved the OH SIPP to Fidelity, and because of the low platform charges.

Not sure if this is of any benefit to you but for ITS/ETFs and with your size of pot (so to speak), HL would only charge you £200pa for a IT/ETF portfolio, plus no charge for cash (as you say).

MonroeM

cloud_dog wrote: »

Yes, the same reason why I have moved the OH SIPP to Fidelity, and because of the low platform charges.

Not sure if this is of any benefit to you but for ITS/ETFs and with your size of pot (so to speak), HL would only charge you £200pa for a IT/ETF portfolio, plus no charge for cash (as you say).

Yes, thanks for the HL terms for holding IT's/ETF's.

Fidelity are also offering me a £200 incentive to transfer so I suppose this would reduce my charges to £290 for the first year. However, I think they also pay 0.35% interest on cash held in a SIPP which exactly equates to the 0.35% admin charge so in essence there is no charge but also no interest - is this right?

NorthernGeezer_2

I think the problem with Fidelity is everything seems 'cloudy'
When i spoke to them about charges on a cash account they never even mentioned the amount of interest they would pay.
With this in mind i was considering transferring to HL given that it wouldn't cost me anything.

cloud_dog

MonroeM wrote: »

However, I think they also pay 0.35% interest on cash held in a SIPP which exactly equates to the 0.35% admin charge so in essence there is no charge but also no interest - is this right?

NorthernGeezer wrote:

I think the problem with Fidelity is everything seems 'cloudy'

Am still a little unsure if Fidelity pay interest on cash held in a SIPP, and if they do it may be in the region of 0.05%, certainly not 0.35% (I'm afraid).

The clarity of charges was something I had to overcome, and will freely admit that I continued with Fidelity because of they offered the investments I would want and the charging level.

If you compare how easy it is to get to the fundamentals of charges for HL or AJ Bell/YouInvest, Fidelity leaves a lot to be desired.

As a comment for MonroeM, I was previously in the process of transferring the HL SIPP to AJ Bell/YouInvest. Their charging structure for ITs/ETFs/stocks was £100pa. The clarity of their website I could not complain about or the service I received. The reason I opted not to go with them in the end was that a poster on here reminded me that AJ Bell/YouInvest were one of the very few (only?) provider who refused to allow existing clients to leave without incurring costs when they changed the structure of their charges; by this I don't just mean they increased their prices. And they actually did this twice. To balance this a lot of people on here are very complimentary of AJ Bell/YouInvest.

NorthernGeezer_2

HL & Fidelity are both the same when holding cash in a SIPP, no charges and 0.05% interest.

ffacoffipawb

cloud_dog wrote: »

Am still a little unsure if Fidelity pay interest on cash held in a SIPP, and if they do it may be in the region of 0.05%, certainly not 0.35% (I'm afraid).

The clarity of charges was something I had to overcome, and will freely admit that I continued with Fidelity because of they offered the investments I would want and the charging level.

If you compare how easy it is to get to the fundamentals of charges for HL or AJ Bell/YouInvest, Fidelity leaves a lot to be desired.

As a comment for MonroeM, I was previously in the process of transferring the HL SIPP to AJ Bell/YouInvest. Their charging structure for ITs/ETFs/stocks was £100pa. The clarity of their website I could not complain about or the service I received. The reason I opted not to go with them in the end was that a poster on here reminded me that AJ Bell/YouInvest were one of the very few (only?) provider who refused to allow existing clients to leave without incurring costs when they changed the structure of their charges; by this I don't just mean they increased their prices. And they actually did this twice. To balance this a lot of people on here are very complimentary of AJ Bell/YouInvest.

When HL put their charges up post RDR they did not allow a free exit either.

Happy with my ISA with HL though. No intentions of moving. Invests in IT only.

Asghar

NorthernGeezer wrote: »

HL & Fidelity are both the same when holding cash in a SIPP, no charges and 0.05% interest.

You posted earlier that Fidelity charge 0.25% for holding cash in a SIPP. Now you are saying that they don't.

Which is it, was your earlier post wrong?

NorthernGeezer_2

Apologies Asghar, my mistake, Fidelity DO charge 0.25% for holding cash and HL hold it free.
Its only the interest that is the same.

MonroeM

When I last looked at Fidelity's written terms for holding cash in a SIPP on their website, I feel sure they stated that if the BOE base rate is 0.5 per cent then they would pay interest on cash holdings of 0.35 per cent.