L&G funds transfer to Fidelity

Yorkshire_Pud

Notepad_Phil said:

Yorkshire_Pud said:

Just a prompt to anyone in this situation L&G to Fidelity.

Fidelity had the protected maximum charge period ending January 31st 2023 after which their usual charges will be applied but they have all increased so there is a capped £90 annual service charge for any holder with funds under £25,000 UNLESS they have a Regular Savings Plan in place minimum £25 per month direct debit to buy more funds then the £90 fee is waived and the standard service fee 0.35% of holding per annum applies.

I have one plan with five trackers in it, well under the £25,000 threshold, wanted to divide the £25 into fifths as was told this was possible by CS but in the event there is a minimum purchase per fund of £25 so had to choose one of the five for all the £25 Regular Savings per month. If I wanted an equal amount in each it would be £125 per month which I don’t want to do. 

Does anyone know if there is a minimum cash amount to buy more funds within my tracker isa with fidelity? Say £10 apportioned between five trackers so £2 each? Took half an hour to get through the other day on the phone so asking here for anyones experience.

It also appears I can switch funds online between the five index trackers without charge? Am I missing something here, will there be  charges levied by L&G themselves if I switch funds around.

Hope this makes basic sense! I am obviously not that well up on all this share malarkey which is why I liked the old L&G format as I could ignore it but now have to be more active or possibly cash out as I’m not dealing in large amounts of funds value.

£25 is the minimum contribution per fund regardless of whether you're purchasing via a regular savings plan or via cash that is already in your account.

As to the switching, yes Fidelity does not charge for switching funds (it's included in the monthly service charge), but your question on whether L&G charges is more complex to answer.

The easy answer is that you won't suffer any more charges than you would have had when you were with L&G and there won't e.g.be a £5 cost that you'll need to pay - the more difficult answer would involve discussions of 'swing pricing' which you can read about here if you feel you want the full answer:
https://www.legalandgeneral.com/existing-customers/investment-support/prices-and-reports/single-swing-pricing/  

Probably explains why I couldn’t invest the £10 I added to my cash account today, was tempted to learn the ropes about how it all works with small amounts but not to be. Just have to hope my £300 a year regular savings  yields some profit.

Thanks for the link, can’t claim to really understand it but enough to realise that mucking about shopping between my five funds for the fun of it will not be fee free as easy as it is to do, bottom line is L&G stocks? will be bought and sold with a fee charged and all for no real benefit as all my trackers are much of a muchness.

Yorkshire_Pud

Albermarle said:

I think the problem is that even £25 is a rather small amount for the admin involved.
Same reason that Fidelity have a minimum charge for smaller customers.
It is much more profitable for them to have  customers with bigger funds.

Yes I realise now I’m  unprofitable and need to actively up my investments or retire from it which is becoming tempting as I’m not really a stocks and shares savvy person. The £90 a year charge would be almost equalled by having the stipulated £25,000 holding at 0.35% service charge. All fine if investments are going up.