Vanguard within Interactive Investor?

I have two SIPPs at present: one with Interactive Investor mainly in Vanguard funds (value approx £800k) and one Standard Life with an old employer (value approx £200k)
The total annual fund charge on the SL SIPP is 1%, which is substantially higher than ii.
My question is: to minimise fees, should I transfer the £200k in Standard Life into my existing ii SIPP, or should I transfer the £200k to a new Vanguard SIPP?
Also, is there any saving in moving all my existing pot straight to Vanguard?

Comments

  • 83705628
    83705628 Posts: 482 Forumite
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    Vanguard's platform fee is 0.15%, capped at £375 on £250k+, there are no extra charges at all unless you want to trade ETFs in real-time - they offer free ETF trades if you're prepared to wait a business day. NB they don't have drawdown sorted out yet and it's a new product so we don't have any history with which to compare their customer service.
    You would have to look at your ii plan, how often you trade, +£10/mo SIPP fee +£10/drawdown fee to work out a comparable total. Are you in the investor plan or the funds fan plan?
    Moving the SL into either is likely to save a worthwhile amount. 
  • redpete
    redpete Posts: 4,722 Forumite
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    When I compared costs of holding funds in Vanguard and ii, including Vanguard funds, with assumptions about the number of transactions, fees for transfer in, regular payments in and lump sum investments, ii came out cheaper.
    loose does not rhyme with choose but lose does and is the word you meant to write.
  • El_Torro
    El_Torro Posts: 1,815 Forumite
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    Newnoel said:
    I have two SIPPs at present: one with Interactive Investor mainly in Vanguard funds (value approx £800k) and one Standard Life with an old employer (value approx £200k)
    The total annual fund charge on the SL SIPP is 1%, which is substantially higher than ii.
    My question is: to minimise fees, should I transfer the £200k in Standard Life into my existing ii SIPP, or should I transfer the £200k to a new Vanguard SIPP?
    Also, is there any saving in moving all my existing pot straight to Vanguard?
    Getting rid of the Standard Life SIPP is probably worthwhile.

    Moving it all to ii is the cheapest thing to do though with a £1 million SIPP I would want at least two platforms. The chances of a platform going bust and you losing all your money is practically zero, though I would still want multiple platforms in case of IT glitches and periods where you can't access your money in one platform for whatever reason.
  • Albermarle
    Albermarle Posts: 27,300 Forumite
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    The total annual fund charge on the SL SIPP is 1%, which is substantially higher than ii.

    You are comparing Vanguard funds ( which ones ) on II with an unspecified  fund  on SL .

    The SL fund maybe a managed fund for example, in which case you are not comparing apples with apples. 

    Having said that the SL SIPP is not particularly competitive , unless you enjoy some special discounts , usually as a ( nice) hangover from it being an ex workplace pension.

  • Joey_Soap
    Joey_Soap Posts: 410 Forumite
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    The nice thing about II is you can grow your SIPP as much as you can and II will charge you not a penny more for the privilege. I like that idea. 4x the portfolio, 10x the portfolio???? Not a penny more to II. Very nice.
  • Freecall
    Freecall Posts: 1,328 Forumite
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    Joey_Soap said:
    The nice thing about II is you can grow your SIPP as much as you can and II will charge you not a penny more for the privilege. I like that idea. 4x the portfolio, 10x the portfolio???? Not a penny more to II. Very nice.
    Joey_Soap is correct which means that (from a platform fee perspective) your Standard Life money won't cost you a penny to hold in your ii SIPP wrapper.

    There will be fees within the investments themselves of course but you will have these whatever you do.

    As you are already paying for a fixed-fee platform, there seems to be little benefit in holding another pension with the additional charges.

    Unless you choose to do it consciously in order to mitigate any potential 'platform failure' issues that is - as El_Torro points out. 

    That though, as they say, is another story... 
  • Albermarle
    Albermarle Posts: 27,300 Forumite
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    Unless you choose to do it consciously in order to mitigate any potential 'platform failure' issues that is - as El_Torro points out. 

    Maybe worth pointing out that if the funds held with SL are insured funds ( which they probably are)  then there is no compensation limit in case of failure . Whereas the limit is £85K with II + £85K per fund house .

    It is a very unlikely scenario but probably partly the reason SL is more expensive. 

  • cloud_dog
    cloud_dog Posts: 6,305 Forumite
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    edited 15 July 2020 at 7:02PM
    Newnoel said:
    I have two SIPPs at present: one with Interactive Investor mainly in Vanguard funds (value approx £800k) and one Standard Life with an old employer (value approx £200k)
    The total annual fund charge on the SL SIPP is 1%, which is substantially higher than ii.
    My question is: to minimise fees, should I transfer the £200k in Standard Life into my existing ii SIPP, or should I transfer the £200k to a new Vanguard SIPP?
    Also, is there any saving in moving all my existing pot straight to Vanguard?
    Google Snowman's cooly comparing platform charges spreadsheet.  Download it, entering all relevant details (holdings, possible trading frequency, etc) and see what platform may suit you from a finance perspective.
    Personal Responsibility - Sad but True :D

    Sometimes.... I am like a dog with a bone
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