HL Loyalty Bonus

Wildsound

londoninvestor wrote: »

They won't let you do that either - reinvesting the loyalty bonus needs to be done as a standalone transaction of at least £10. Of course, you could do that transaction on the same date as you make another investment, but that doesn't get you around the £10 minimum specifically for the loyalty bonus.

My impression was that the loyalty bonus can just be paid into the capital account (if told to do so) and left as cash until it is invested manually at £50+ per trade, at which point you would just wait until you made your £4k contribution, and then just lump it on top in one go.

Am I mistaken? Apologies if I'm not explaining my point very well

londoninvestor

Wildsound wrote: »

My impression was that the loyalty bonus can just be paid into the capital account (if told to do so) and left as cash until it is invested manually at £50+ per trade, at which point you would just wait until you made your £4k contribution, and then just lump it on top in one go.

Am I mistaken? Apologies if I'm not explaining my point very well

For loyalty bonuses from holdings that predate RDR, that's how it was - and indeed still is when you have funds you bought before 2014.

However, for post-2014 loyalty bonuses, you can't transfer into the capital account. If you haven't selected automatic reinvestment, then once the balance reaches £10, you can use it (or some portion of it greater than £10) to invest in any one of the funds you already hold. That's a separate transaction though from any that you might place using the cash in your capital account.

bowlhead99

You may not be able to "transfer it to your capital account" because it is treated and recorded as income.

But are you saying that if you had £5 in the income account and £46 in the capital account and tried to make a £50 investment they would refuse to do it, saying it would send you overdrawn on the capital side? I don't think that's the case, because they usually treat cash in the multiple types of account as fungible. That is, they have a preference where to take money from but if there's a shortfall they'd take it from somewhere else.

If that were the case (which it seems to be for all other types of cash sitting in the"income account", it's not really true that you can't use the loyalty bonus until it gets to £10 and have to book it as a separate £10 purchase. You'd be able to do a £50 (or £4005, etc) purchase using up all or a portion of the £5 loyalty money, which is real cash that you own, simply by booking a transaction that you couldn't afford without recourse to the funds, so then they use those funds rather than deny the transaction. Are you saying they literally do deny the transaction?

londoninvestor

Not so much deny it, more that it's impossible in the system to attempt a transaction that uses a mixture of loyalty bonus with any other money.

Unlike dividend income, the loyalty bonus doesn't appear in your "Amount Available To Invest", so if you had £5 of loyalty bonus and £4000 of "other" cash, you couldn't place a buy order above £4000.

To use the loyalty bonus you need to go to a separate screen, and place the order from there - that restricts you to using only your loyalty bonus money, and only investing in the funds you already hold.

I've sketched in red in the screenshot where the "Deal" button would be - but I don't have £10 of loyalty bonus in any of my accounts, so I can't literally show you it!

Screenshot

Wildsound

You're right, apologies for adding confusion. Good to know though. Perhaps calling their dealing team could mean you can amalgamate the cash, but I've never tried this as only ever deal manually online. Would be interesting to know if this works if anyone has tried it?

TheShape

Called Hargreaves Lansdown as my £1.74 pending Loyalty Bonus is still pending. It's usually paid on a monthly basis but it appears there is a delay receiving funds from Blackrock as according to the agent, Blackrock funds the loyalty bonus.

Felt like a bit of a plonker calling to find out where my £1.74 was but once it's credited I'll be a quarter of the way to my £10 minimum investment threshold.

Wassa123

You're doing better than me. I have a whopping £0.17 in my loyalty account!

ColdIron

TheShape wrote: »

Felt like a bit of a plonker calling to find out where my £1.74 was but once it's credited I'll be a quarter of the way to my £10 minimum investment threshold.

This time next year Rodney ...

Wassa123

Just had a look.

I've got my fee payment set up to come out of the loyalty bonus first so I tend to ignore it as it's usually close to 0!

Alexland

Did others get a HL Summer Investment Report email today and if so did your report itemise your LISA account? Our reports are only showing the loyalty bonus account while the previous report was showing both.


Alex