Making sense of new II SIPP fees

fronty

Trying to get my head around the new fee structure II are bringing in from 1st June. I'm looking at a SIPP... so it's £10/month for the SIPP wrapper, then I have to buy a service plan? Cheapest is £9.99/month... huh? I just want to set up regular investments, why do I need a service plan?

If my SIPP is only invested in a small number of funds, and I do monthly investments via direct debit, then the trading fees are 99p per fund (not £7.99?)? Let's say I have 6 funds, so that's £5.94/month in dealing charges - but the £9.99 service plan includes £7.99 credit per month, so that'll cover the £5.94 fees and leaves £2.05 credit, but that expires after 3 months.... the price list says that dividend re-investment costs £0.99 so that will kick in dependent on how frequently the funds pay out.... also it mentions you get 1 free trade per month, does that apply to the monthly investments or one-off trades... or is that what the £7.99 credit is for, or is it an extra freebie on top of the credit? Can I use that to pay for the monthly 99p investments... which would be 6 trades not 1? Huh?

Maybe I'm just being a bit thick but I'm finding this quite confusing. It still sounds cheaper than AJ Bell, I think, but it's not that clear to me.

What if I just have 1 fund, like a VLS fund, I still have to buy the service plan? Which means I'm leaving money on the table every month and the blurb says the credit expires after 3 months, so they basically take it for themselves?

Is there somewhere else that charges a flat fee and doesn't make it so complicated?

MallyGirl

There was always been a fee for the account- used to be £22.50 per quarter but has now gone up to £9.99 per month for cheapest plan so a rise of £2.50 per month. Old plan could use all £22.50 as trading credit but trades were £10 so you could do 2 and a bit. New plan you get £7.99 trading credit but trades have got a bit cheaper I think. Reg investment seems to have dropped from £1.50 to 99p.
On one trade a month and some reg investments I think you would be better off on the new plan.
The SIPP is on top of the account (always was) and is £120 so unchanged.
For low value of total funds II is more expensive than a percentage based provider but as the balance grows it becomes better value.

triplea35

Remember the one Service Plan charge is spread across all your accounts, so with a Trading Account, and if it you were to open an ISA you could use some of the Trading Credit on those accounts too.

Also consider choosing ACC (accumulation) funds and there would be no need for dividend reinvestment.