Where do iweb take fees from

masonic

Brian65 wrote: »

OK. Well if fees don't have to come out of ISA funds why won't they let you pay all the fund fees separately so they don't come out of your ISA allowance?

I think you are confusing fees charged by iWeb and the management fees charged within the funds. iWeb doesn't have any "fund fees" it only has transaction fees. The transaction fees could theoretically be taken from a different account, but iWeb doesn't do this for the reasons explained by bowlhead. Other providers, such as Interactive Investor, make a monthly charge outside of the ISA wrapper (by DD or from a separate trading account) and in exchange give free trading credit that can be used within the ISA. But Interactive Investor is a more expensive platform than iWeb for most people (YMMV). Others will have simialr arrangements.

Fund fees, meaning the management fees paid to the fund manager, are internal to the fund, so it is not possible to separate them out. They are taken from assets held within the fund.

Alexland

HL also let you pay your fees outside the ISA from a parallel Fund & Share account but that has it's own closure fee eventually (unless FCA ban them) so I don't bother.

If my biggest financial regret is the leakage on my ISA and Pension allowances from paying modest fees from the cash balance then I will have done pretty well overall.

Brian65

bowlhead99 wrote: »

Some ISA managers will have an internal rule that their fees have to be paid out of ISA money. It is easier for them to administer the account.

Seems thats what I got wrong.
I wrongly assumed it was HMRC stopping me taking fees from another account to pay the ISA charge.
Thanks for clearing that up.

londoninvestor

Alexland wrote: »

HL also let you pay your fees outside the ISA from a parallel Fund & Share account

Lloyds too, and hence probably Halifax?

Alexland wrote: »

If my biggest financial regret is the leakage on my ISA and Pension allowances from paying modest fees from the cash balance then I will have done pretty well overall.

Very true - I can't see it being material enough to swing my choice of platform!