Fidelity JISA and (Junior) SIPP Changes

cloud_dog

(I know Junior SIPPs are just a marketing term really)

Received an update from Fidelity advising that they are withdrawing service (platform) fee from these two accounts as from 1 September 2020.  And, that you will be able to instigate transfers online from 1 October 2020.  UPDATED: They don't charge for OIEC/fund transactions so I am assuming this makes them very cheap for the junior products.  Minimum SIPP contribution is £40pm so not outlandishly high.

Alexland

Yes we got that miscellaneous letter too - there wasn't much detail so unsure if this means that these accounts will be free for new customers to open or if you need to hold an existing adult account. It was an addressed letter so it might only be a benefit for Wealth customers who would otherwise only pay the reduced 0.20% rate? I can't find anything about it on their website yet.

We already have too much of our net worth in our £45 Fidelity SIPPs so we have been building up investments elsewhere but this might tempt me to move the JISAs across because the kids will get their own account FSCS protection. They are currently investing in SWDA on Jarvis X-O but if moving to Fidelity would probably switch to the cheaper Fidelity World fund which unlike an ETF would also have protection. No trade fees on funds is attractive as I am still occasionally adding money into our youngest's to try and get them matching.

But then stock markets are back up high again so I'm also tempted to move the JISAs to a cash provider again for the most attractive rates (but apparently terrible transfer service) having captured most of the upside of the recent market recovery.

cloud_dog

We (OH) is certainly not in the 'Wealth customer' bracket and it was an email and is available in the online documents section.  My understanding is that they are simply removing the platform charge(s) from those accounts.

We only recently started dripping small amounts in the our child's SIPP, for peace of mind reasons more than looking to build a big nest egg but, I am pleased that Fidelity's minimum is £40 (grossed up to £50) per month.  Certainly something to think about as it is currently with HL (small amounts / small charges, and all that).

I would move the Jarvis X-O to Fidelity but they are currently holding one stock I'm unsure Fidelity would list, I'll have to double check.  

Alexland

Amazing they are really willing to run a JISA/SIPP account for no platform or trade fee on funds. Jarvis X-O confirmed to me the £50+vat ISA closure fee doesn't apply to JISAs before I opened the accounts. It would cost a £10 trade to switch from SWDA to Fidelity World after the transfer completes but it would save 0.08% ongoing and occasional £5.95 trade fees when contributing more I'll probably be doing this then as part of my endless sequence of account transfers to keep getting a better deal. I am not putting any money into child pensions as I figure they will want to use their LTA for higher rate tax avoidance in the distant future :-)

dunstonh

(I know Junior SIPPs are just a marketing term really)

That made me smile.

cloud_dog

t'was just for you 

cloud_dog

Alexland said:

Amazing they are really willing to run a JISA/SIPP account for no platform or trade fee on funds. Jarvis X-O confirmed to me the £50+vat ISA closure fee doesn't apply to JISAs before I opened the accounts. It would cost a £10 trade to switch from SWDA to Fidelity World after the transfer completes but it would save 0.08% ongoing and occasional £5.95 trade fees when contributing more I'll probably be doing this then as part of my endless sequence of account transfers to keep getting a better deal. I am not putting any money into child pensions as I figure they will want to use their LTA for higher rate tax avoidance in the distant future :-)

I have stopped contributing to the S&S JISA (it has sufficient in there) and it is just being held in X-O so, no actual charges until any dealing comes in to play.  Was interested that you confirmed no £50 account closure fee, that has always been a little nag at the back of my mind, I may leave the S&S JISA where it is at the moment and then switch it to Fidelity shortly before age 18 (not too long now), so as to remove that burden.  EDIT:  It will probably end up in iWeb as an adult ISA or LISA (somewhere) or combination (hopefully).

The SIPP was only started very recently and we are only contributing the bare minimum with HL (£20pm).  I suppose I am planning on using it more as another financial tool, i.e. you have this, the government tops it up, when you start working they will offer you one which they will also contribute to, isn't that great...yada yada.

Alexland

I have kept that Jarvis X-O email about the no JISA closure fee safely but yes if you keep the account there until age 18 then it would mature into an ISA and they should notify the updated terms of the ISA account before those terms apply. Still transfers can take ages especially if there are multiple holdings and dividends to flow through so if 18 is going to happen soon then it might be better it matures into an adult ISA on Fidelity before being onward transferred to iWeb etc if it's large and static enough. Guess it depends how long it takes them to pick the right motorbike...

cloud_dog

That's a errmm fight for another day.

Alistair31

So now they are not only cheap for ETF in SIPP but also funds too?  

cloud_dog

Well for a JISA or a SIPP for a junior, they are very cheap for funds, as in zero cost (other than fund charge).