iWeb - Worth getting in now?

grumiofoundation

Alexland said:

ChilliBob said:

Blimey, that doesn't sounds good. On my list for this week was to move my cash isa to them. Hopefully cash is a simple process! 

L&G are a bit weird in how they treat ISAs for example splitting them between a Lump Sum ISA and a Regular Savings ISA account depending on how you make the contributions.

Because L and G have no platform fees the charges on the funds they offer are higher than on the same fund offered by other providers (e.g. iWeb). So if doing an in specie transfer (assuming you can) to another provider guess they would convert from the 'inclusive' fund class to the 'normal' fund class? Suppose would complicate the transfer and extend timescale?

The splitting of the lump sum/reg contribution is rather annoying!

Alexland

grumiofoundation said:

Because L and G have no platform fees the charges on the funds they offer are higher than on the same fund offered by other providers (e.g. iWeb). So if doing an in specie transfer (assuming you can) to another provider guess they would convert from the 'inclusive' fund class to the 'normal' fund class? Suppose would complicate the transfer and extend timescale?

Yes for example the R(etail) class of the L&G International Index fund that we are invested in is 0.51% compared to the (I)nstitutional class at 0.13% so on that fund the difference of 0.38% covers their platform costs. iWeb offer both R and I class units on that fund so they could transfer as R class and then it would be a couple of £5 trades to move to I class or something else. I guess you could ask L&G to do a unit class conversion during the transfer but they might not be interested. On the minimum amount the extra 0.38% is clearly much less than the cashback over 2 years but if you start contributing more it becomes marginal benefit or worse.

grumiofoundation

Alexland said:

grumiofoundation said:

Because L and G have no platform fees the charges on the funds they offer are higher than on the same fund offered by other providers (e.g. iWeb). So if doing an in specie transfer (assuming you can) to another provider guess they would convert from the 'inclusive' fund class to the 'normal' fund class? Suppose would complicate the transfer and extend timescale?

Yes for example the R(etail) class of the L&G International Index fund that we are invested in is 0.51% compared to the (I)nstitutional class at 0.13% so on that fund the difference of 0.38% covers their platform costs. iWeb offer both R and I class units on that fund so they could transfer as R class and then it would be a couple of £5 trades to move to I class or something else. I guess you could ask L&G to do a unit class conversion during the transfer but they might not be interested. On the minimum amount the extra 0.38% is clearly much less than the cashback over 2 years but if you start contributing more it becomes marginal benefit or worse.

Ah interesting I didn’t realise iWeb would offer both classes.  

Suppose if you liked the L and G fund and wanted to save the £10 could make one’s life more complicated (and who doesn’t want that?) and transfer to another platform that allows free fund trades, do a switcheroo to cheaper version, then transfer to iWeb. 

hoofy

ChilliBob said:

Blimey, that doesn't sounds good. On my list for this week was to move my cash isa to them. Hopefully cash is a simple process! 

I sold my isa stock on HL last week and started the cash transfer process to IWeb. I'll let you know how it goes if you want?

badger09

ChilliBob said:

Blimey, that doesn't sounds good. On my list for this week was to move my cash isa to them. Hopefully cash is a simple process! 

I've moved Cash ISAs to IWEB from 3 different providers over the years. Average time taken is just shy of 3 weeks.

ChilliBob

Cheers, this is just one, with Charter. Ironically just moved from Santander and Coventry over to them then decided I'd be better to use it for investing as the returns (hopefully!) would be higher than cash so better to not pay tax on it if I could avoid 

Tantalus86

hoofy said:

I sold my isa stock on HL last week and started the cash transfer process to IWeb. I'll let you know how it goes if you want?

I'm interested as to why you sold into cash before transferring to iWeb? Could you not do an in specie transfer and save the need for £5 trades later on?

badger09

Tantalus86 said:

hoofy said:

I sold my isa stock on HL last week and started the cash transfer process to IWeb. I'll let you know how it goes if you want?

I'm interested as to why you sold into cash before transferring to iWeb? Could you not do an in specie transfer and save the need for £5 trades later on?

Could be any number of reasons...IWEB don't offer everything. Or hoofy could have been holding investments in a specific class exclusive to HL. Or possibly wanted to take profit & reconfigure portfolio. Or simply for speed as cash transfers are much quicker than in specie.

ChilliBob

Just started the process to transfer to iWeb - oldskool, print and sign .. They told me around 40 working days to transfer from Charter

hoofy

Tantalus86 said:

hoofy said:

I sold my isa stock on HL last week and started the cash transfer process to IWeb. I'll let you know how it goes if you want?

I'm interested as to why you sold into cash before transferring to iWeb? Could you not do an in specie transfer and save the need for £5 trades later on?

I was advised to ditch the HL stock as it was their own managed/high charge 


Also it takes much longer to transfer stock than it does cash, so I believe.