Paying cash against platforms charges

ANGLICANPAT

Ive got around 4 ISA funds on the Fidelity Funds Network platform . Monthly charges were taken from cash waiting to be allocated to funds, its not enough so I wanted to top up rather than have charges taken from funds so in May this year I topped up with £100 to cover some future charges leaving me £19900 isa allowance for this year. Has this restricted my freedom to invest it in an ISA of whatever sort outside Fidelity?

eskbanker

Yes, it means you can't pay anything into another S&S ISA with a different platform until the next tax year, unless you transfer the £100 first (which then causes the same effect that you were trying to avoid).

You can pay up to £19,900 into any cash, innovative finance or lifetime ISAs - if you're determined to direct this to S&S you can pay into another type of ISA for now and transfer to S&S in the next tax year....

Albermarle

its not enough so I wanted to top up rather than have charges taken from funds

A future solution could be to have at least one income producing fund , which would generate just enough income to pay the platform fees.

eskbanker

Albermarle wrote: »

A future solution could be to have at least one income producing fund , which would generate just enough income to pay the platform fees.

....or use a platform where ISA fees can be settled from money held outside the ISA!

ANGLICANPAT

Thanks for the ideas all.

eskbanker wrote: »

....or use a platform where ISA fees can be settled from money held outside the ISA!

I was already thinking of trying to move to a cheaper platform as my funds are about to grow out of needing a % charge system. So Im presuming then if I find a platform taking money from 'the outside' thats cheaper than Fidelity ,( Is that like looking for hens teeth? ) I could put say 15k into a fund on Fidelity platform and £4,900 into any company's cash isa I liked and be immediately free to move all on my Fid platform to the new platform?

eskbanker

ANGLICANPAT wrote: »

Im presuming then if I find a platform taking money from 'the outside' thats cheaper than Fidelity ,( Is that like looking for hens teeth? )

You'd obviously need to weigh up relative charges according to exactly what you're invested in, how much is in your pot, how often you trade, etc, but I do know that platforms such as II and HL both allow ISA fees to be taken from the outside:

https://help.ii.co.uk/system/templates/selfservice/ii/help/customer/locale/en-GB/portal/402800000001013/content/Auth-5281/Paying-the-fixed-quarterly-payment:

If there is no Direct Debit set up please see the details below for the order of how we’ll attempt to collect your monthly subscription.

Hold a Trading Account with a linked ISA and/or SIPP account

1. Available cash from your Trading Account
2. Available cash from your ISA
3. [...]

https://www.hl.co.uk/investment-services/isa/frequently-asked-questions:

If there’s not enough cash in your ISA to pay charges each month, we’ll take charges from any cash in your HL Fund and Share Account (if you have one)

ANGLICANPAT wrote: »

I could put say 15k into a fund on Fidelity platform and £4,900 into any company's cash isa I liked and be immediately free to move all on my Fid platform to the new platform?

Yes, you could do that, among many other ways of skinning it, depending on exactly what your desired end position is!

HHarry

eskbanker wrote: »

You'd obviously need to weigh up relative charges according to exactly what you're invested in, how much is in your pot, how often you trade, etc, but I do know that platforms such as II and HL both allow ISA fees to be taken from the outside:

As do Vanguard and Charles Stanley Direct.

ANGLICANPAT

Thanks so much , hugely helpful.

ffacoffipawb

HHarry wrote: »

As do Vanguard and Charles Stanley Direct.

Sadly, AJ Bell Youinvest do not.

Zorillo

Why is that? It's occurred to me that I will have to leave a considerable amount uninvested at age 50 to cover the last decade of LISA fees. Or move.

IanSt

Zorillo wrote: »

Why is that? It's occurred to me that I will have to leave a considerable amount uninvested at age 50 to cover the last decade of LISA fees. Or move.

Or make use of Income funds to pay the fees.