iWeb Offering £100 Cashback (Negating the £100 Account Opening Fee)

EthicsGradient

SharpShooter said:

So they let you open an account and they promise to return your £100.

They offer free U.S trading, but not UK (confused) with a 1.5% transaction fee. In the modern day, these companies are out of date.

Their charges are:
UK: £5 per trade
US: 1.5% exchange fee
That's not great for the US, but investing directly in US shares is only done by relatively few UK investors. You can do better than £5 for regular investing, and indeed we see here people who do, or plan to do, a scheme in which they build up some regular contributions on another platform, and then transfer that to iWeb when convenient. But for one off trading, £5 isn't bad in the UK, and an ISA with no annual fee or percentage charge at all is very attractive.

ColdIron

intalex said:

Do they operate a Lifetime ISA?

No they don't

wmb194

intalex said:

Do they operate a Lifetime ISA?

No, it doesn't.

https://www.iweb-sharedealing.co.uk/

Shedman

Thinking of opening one for the wife's S&S ISA & GIA currently with Halifax in order to save the £36 a year fee  (plus iWeb transaction fees are generally less not that much dealing accurs anyway).  I can see from the offer terms that a transfer in from other LBG accounts, including Halifax, won't meet the criteria to qualify for cashback. However, I presume that they will accept a transfer in from other LBG accounts but just won't give the cashback on it?  

So the solution would seem to be to dump £5k cash in it to get the cashback, transfer in her Halifax Share Dealing accounts and then take the cash out shortly after (if we don't want to actually invest more at the moment).  Can't see from the T&Cs that there is a minimum time limit to hold the £5k there...only a condition about transferring out within 12 months which I'm taking to mean transferring the whole Share Dealing account to a new provider.  

Does this all seem right?  

Offer terms and conditions (extracts)

• Transfers from Share Dealing Accounts and Stocks and Shares ISAs can be from any UK provider except those already held within the Lloyds Banking Group (i.e. Halifax, Bank of Scotland, Lloyds Bank or IWeb).

• We reserve the right to reclaim any cashback payment made to you if you transfer out of your IWeb Share Dealing Account or IWeb Share Dealing ISA within 12 months of us paying you Cashback under this offer.

hamski

Apologies if this seems like a stupid question but not very clued up on this.I currently have a non isa account with bt shares value of approx £8000 with x-o,If I open an isa with iWeb then request a transfer from x-o to iWeb will this automatically go into the new iWeb isa account or do I have to bed and isa.
thanks

ColdIron

Unfortunately you can only subscribe to (pay new money into) an ISA with cash (obviously you can transfer shares from ISA to ISA) so you would need to sell, transfer then repurchase. x-o is pretty reasonable so you might be best to open an ISA with them

Edit:

• Can I transfer shares I already own into an ISA account?

• Unfortunately the current Regulations do not allow you to transfer shares directly into your ISA but under HMRC rules you can take advantage of your ISA allowance without having to subscribe any new money by using a process known as "Bed and ISA". You simply instruct us to sell shares you already hold and transfer the proceeds (up to the annual allowance limit) to your ISA – the proceeds are then used to buy back your shares.
  
  
• All you need to do is open an ISA account, if you haven't got one already, and then complete this form with details of which shares you would like to Bed and ISA from your nominee account, and email it to deal@jarvisim.co.uk.

https://www.x-o.co.uk/isa-account.html

N.B. The bit in italics sounds very like a subscription to me

hamski

Thanks, I’m trying to take advantage of this iWeb offer and get my shares into an isa, x-o charge £100 to bed and isa not sure what iWeb would charge. Do you know if it would cost less to sell my shares with x-o then transfer the proceeds to iWeb (qualifying for the cashback) then buying the shares back within the iweb isa I opened.

ColdIron

hamski said:

Thanks, I’m trying to take advantage of this iWeb offer and get my shares into an isa, x-o charge £100 to bed and isa

Are you sure about that £100? I can't see it in any of their charges but perhaps I missed it. I am not a client of x-o

There is nothing special about Bed & ISA, it's simply the process of selling, transferring (subscribing) and re-buying, no reason you can't do it yourself. If you ask them to do it for you they will do the whole operation with a single instruction

Do you know if it would cost less to sell my shares with x-o then transfer the proceeds to iWeb (qualifying for the cashback) then buying the shares back within the iweb isa I opened.

AFAICS x-o will charge £5.95 per transaction and IWeb £5 (and don't forget about stamp duty)

hamski

I emailed x-o today and asked how much I would need in cash in my account for bed and isa and was told £100.Will contact iWeb tomorrow and ask how much they charge then decide which way to do it. Thanks for your input.

cloud_dog

hamski said:

I emailed x-o today and asked how much I would need in cash in my account for bed and isa and was told £100.Will contact iWeb tomorrow and ask how much they charge then decide which way to do it. Thanks for your input.

Are you sure that is not a minimum amount?

Did you ask what fhe charge is to bed ann ISA?