HL reducing LISA fee to 0.25%

cloud_dog

(apologies if I've missed this already...)

According to a Reddit poster (received an email) it looks like HL are reducing their LISA fees down to 0.25% from 13 March.

Unsure if this affects their ISA accounts similarly, would be good if anyone else who has received the same notification could confirm?  Not applicable to ISAs.

AndyTh_2

https://moneyweek.com/investments/605752/hargreaves-lansdown-cuts-fees for more information, also Junior ISAs are getting most fees removed.

trevjl

Junior ISAs are getting most fees removed.

So, the 2 hours I spent researching moving the grandkids JISA's last night was not the best use of a Friday night !! 

Herbalus

For a LISA it used to be a >£10k portfolio would be worthwhile moving to etf’s for the £45 cap on shares (0.45% on £10k is £45). Now that figure has risen to £18k at a lower 0.25% rate. 

Anybody with a balance over £18k and already in etf’s this isn’t going to affect.

Kaizen917

Seems a bit tempting to move my LISA although, being with Dodl thats part of AJ bell (but without transaction fees) its about the same fee situation.

cloud_dog

In actual costs HL are cheapest up to £4800, then transfer to Dodl until £30k, then transfer back to HL (due to the cap £45pa).  AJB have a lower cap at £42pa but you need to take in to account any transaction costs.

Alexland

I'm happy with my capped AJ Bell LISA. As well as the slightly lower cap the other advantage is AJ Bell allows you to invest the LISA bonus into ETF units using the regular investor rate whereas HL only allows the lower rate on new contributions not from the cash balance where bonuses are added.

cloud_dog

Alexland said:

I'm happy with my capped AJ Bell LISA. As well as the slightly lower cap the other advantage is AJ Bell allows you to invest the LISA bonus into ETF units using the regular investor rate whereas HL only allows the lower rate on new contributions not from the cash balance where bonuses are added.

I'm not really sure the differentiation for ETFs is a big enough concern for most.  I appreciate for a lot of younger people ETFs are the be all and end all (I know your situation is different), but for most I would think OEICs are more than adequate and therefore the low (no) transaction fee with HL compared to AJB would make it beneficial, but as always it is situation dependant.

(welcome back btw).

mattywallace121

Herbalus said:

For a LISA it used to be a >£10k portfolio would be worthwhile moving to etf’s for the £45 cap on shares (0.45% on £10k is £45). Now that figure has risen to £18k at a lower 0.25% rate. 

Anybody with a balance over £18k and already in etf’s this isn’t going to affect.

You aren't including the cost to buy the ETF though.

I hold Blackrock consensus and there is a 0.13% loyalty fee payable also so I'm currently holding over 20k and including the loyalty bonus it will now cost me much less than the £45 cap.

kuratowski

cloud_dog said:

In actual costs HL are cheapest up to £4800, then transfer to Dodl until £30k, then transfer back to HL (due to the cap £45pa).  AJB have a lower cap at £42pa but you need to take in to account any transaction costs.

However, HL don't accept transfers in for LISAs, so there's no transferring back.

But, it's good to see this fee reduction making the S&S LISA market marginally more competitive.

Money_Grabber13579

I did note they have a separate fee structure for LISA’s over £1m and then free over £2m (I think). Is that really necessary? Will anyone realistically ever be able to have a LISA which accumulates £1m, never mind £2m, given you can only pay in for roughly 30 years? The growth would need to be enormous to get to anything close to £1m I’d have thought.