Is this a free £150 from Hargreaves Lansdown?

Johnjdc

I think I may have been giving up a free £150 a year but help me think it through.

I have Cash ISAs but have mostly used HL for share investing in recent years, putting in generally the full £20k a year.

HL regularly offer, and currently are offering cashback on inbound ISA transfers. For £20k that's £150.

Is there any good reason each tax year not to

- Open an easy access cash ISA for £20k

- Wait for the offer if it's not currently open

- Transfer £20k plus any interest gained to HL

- Get £20,150 in the account rather than the £20k from depositing directly

eskbanker

Can't see any reason why that wouldn't work for their current offer, but there might not be future ones or they could introduce similar terms to current account switching incentives and exclude customers who've previously benefitted from such offers.

The cynic might observe that if they were in a position to make such payments to the same customer repeatedly, then that probably says quite a bit about their profit margins!

Albermarle

or they could introduce similar terms to current account switching incentives and exclude customers who've previously benefitted from such offers

It seems to be possible to gain cashback switching to HL, wait a minimum of 12 months and switch to Fidelity ( who regularly offer transfer cashback ) and then wait another 12 months until next HL transfer cashback is offered. Carry on ad infinitum . For larger sums the cashback can be £500 to £1500.

Although both platforms are generally not the cheapest, you can get around that by investing only in IT's ETF's etc which caps the fees.

Maybe you would get blocked at some point by one of them, as a non desirable customer !

Johnjdc

Albermarle said:

or they could introduce similar terms to current account switching incentives and exclude customers who've previously benefitted from such offers

It seems to be possible to gain cashback switching to HL, wait a minimum of 12 months and switch to Fidelity ( who regularly offer transfer cashback ) and then wait another 12 months until next HL transfer cashback is offered. Carry on ad infinitum . For larger sums the cashback can be £500 to £1500.

Although both platforms are generally not the cheapest, you can get around that by investing only in IT's ETF's etc which caps the fees.

Maybe you would get blocked at some point by one of them, as a non desirable customer !

Good thought. I think for me this wouldn't work (my investments are so diversified that the share dealing fees to "bed and ISA" would all but wipe out the cashback )

But good thought in theory...

masonic

Johnjdc said:

Albermarle said:

or they could introduce similar terms to current account switching incentives and exclude customers who've previously benefitted from such offers

It seems to be possible to gain cashback switching to HL, wait a minimum of 12 months and switch to Fidelity ( who regularly offer transfer cashback ) and then wait another 12 months until next HL transfer cashback is offered. Carry on ad infinitum . For larger sums the cashback can be £500 to £1500.

Although both platforms are generally not the cheapest, you can get around that by investing only in IT's ETF's etc which caps the fees.

Maybe you would get blocked at some point by one of them, as a non desirable customer !

Good thought. I think for me this wouldn't work (my investments are so diversified that the share dealing fees to "bed and ISA" would all but wipe out the cashback )

But good thought in theory...

Do you not already hold investments in a S&S ISA? Given where the CGT limit is heading, that might be something to address. Transferring to one of the free trading apps would be one way to do so at low cost.

Johnjdc

masonic said:

Johnjdc said:

Albermarle said:

or they could introduce similar terms to current account switching incentives and exclude customers who've previously benefitted from such offers

It seems to be possible to gain cashback switching to HL, wait a minimum of 12 months and switch to Fidelity ( who regularly offer transfer cashback ) and then wait another 12 months until next HL transfer cashback is offered. Carry on ad infinitum . For larger sums the cashback can be £500 to £1500.

Although both platforms are generally not the cheapest, you can get around that by investing only in IT's ETF's etc which caps the fees.

Maybe you would get blocked at some point by one of them, as a non desirable customer !

Good thought. I think for me this wouldn't work (my investments are so diversified that the share dealing fees to "bed and ISA" would all but wipe out the cashback )

But good thought in theory...

Do you not already hold investments in a S&S ISA? Given where the CGT limit is heading, that might be something to address. Transferring to one of the free trading apps would be one way to do so at low cost.

Yes I already hold investments in a S&S ISA. Perhaps I am overestimating the complexity of an 'in specie' transfer so I'm assuming liquidation and transfer as cash.

fourmarks

Pardon my ignorance but I have been looking at the HL cashback offer and have been considering transferring in 2 S & S ISA's of  £20k + (Wealthify). However, this is the ignorant bit, do the HL ISA's require me to conduct any of the dealings or is it all done automatically on my behalf.

I once opened an S and S ISA with Fidelity and had to go back, somewhat red faced, and cancel the ISA when I realised I was supposed to do some picking and choosing. That is not an area in which I have any knowledge or experience, nor indeed the time required to do it properly.

Thank you.

eskbanker

fourmarks said:

Pardon my ignorance but I have been looking at the HL cashback offer and have been considering transferring in 2 S & S ISA's of  £20k + (Wealthify). However, this is the ignorant bit, do the HL ISA's require me to conduct any of the dealings or is it all done automatically on my behalf.

I once opened an S and S ISA with Fidelity and had to go back, somewhat red faced, and cancel the ISA when I realised I was supposed to do some picking and choosing. That is not an area in which I have any knowledge or experience, nor indeed the time required to do it properly.

HL do offer some ready-made portfolios for those who don't wish to make more detailed selections:

https://www.hl.co.uk/funds/leave-it-to-an-expert

Albermarle

fourmarks said:

Pardon my ignorance but I have been looking at the HL cashback offer and have been considering transferring in 2 S & S ISA's of  £20k + (Wealthify). However, this is the ignorant bit, do the HL ISA's require me to conduct any of the dealings or is it all done automatically on my behalf.

I once opened an S and S ISA with Fidelity and had to go back, somewhat red faced, and cancel the ISA when I realised I was supposed to do some picking and choosing. That is not an area in which I have any knowledge or experience, nor indeed the time required to do it properly.

Thank you.

HL and Fidelity platforms are very similar. Known as 'whole of market' platforms with a huge range of investments available. There is no personal advice available on what to invest in, although as above they have guides that try and point you in the right direction.

fourmarks

My thanks to eskbanker and Albermarle. I shall read and, hopefully, digest before making any decisions.