Is there any reason to invest in Vanguard again or best to close the account? 3 January 2022 at 1:01PM in ISAs & tax-free savings 5 replies 418 views

isayhello

I used to have an ISA with Vanguard which is now being transferred to iWeb.

I did like the interface of Vanguard and that there were no charges for trading funds but for the overall charges it made sense to move to iWeb. I was wondering if people ever continue to use their Vanguard accounts for anything after transfers or just close them down? I think it's useful having the account if I ever need it or perhaps diversifying with different ISA providers but not sure of any other reason.

Thanks for any help.

eskbanker

Some will use one platform that doesn't charge for purchases (such as Vanguard) for current year activity, and then decant the assets annually into the likes of IWeb with no ongoing fees, thereby getting the best of both worlds....

isayhello

@eskbanker I'd read this somewhere else but it didn't quite make sense to me...for instance if you invest the full 20k into Vanguard at 0.15% and then switched to iWeb later in the year. Aren't you paying the 0.15% fee and then the £5 charges to buy the same funds after you transfer?

In that case why not just put the 20k straight into iWeb to begin with and save the 0.15%?

Alexland

The method is more of interest to regular contributions where the iWeb charges for 12 trades a year would be £60 compared to say £16 for a gradually increasing valuation on Vanguard percentage charges before transferring the asset over to iWeb never paying their £5 trade charge.
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isayhello

Thanks @Alexland so in your opinion? is it worth having accounts in platforms such as Vanguard, maybe others e.g. HL? or best to close them down?

I guess I don't know what investments they would be better for than iWeb for instance.

Alexland

Given the iWeb transfer times seem to have deteriorated then I don't see the point of keeping an old account open. There is hardly anything exclusive about these accounts that they couldn't opened again in future if required so I would just close them.