ii incentive and gilt coupon reinvestment

I'm considering moving an existing IL gilt ladder from iWeb to Interactive Investor, to take advantage of their 'new customer' incentive (£1500). Does anyone have good or bad experiences of in specie transfers to ii?

Second, do ii offer the facility to automatically reinvest coupon payments, and is there a charge made each time, or is it free? Is be grateful for anyone's direct experience. 

Many thanks! 

Comments

  • michaels
    michaels Posts: 28,002 Forumite
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    So with an IL gilt ladder are you not looking to draw the coupons fairly soon after payment?  I have modelled them as going into moneymarket funds until they ned to be drawn but can see there would be a cost in doing the transactions to do so.  I think II do pay some interest on credit balances now so that is also an option?  I think on most packages you get 1 'free' trade per month up to a certain value.

    I did look at buying IL bonds though II and it suggested you had to contact them to trade them rather than being able to buy via the web interface which sounds a pain but obviously transferring in an existing ladder in specie where presumably each holding is held to maturity you don't have that problem.
    I think....
  • MrBadger1969
    MrBadger1969 Posts: 30 Forumite
    Name Dropper First Post Photogenic
    I'm planning for all coupons to be reinvested in the same gilt, and to draw the value at redemption as UPFLS payments (one every time one of the series of gilts matures). Yes I am planning to hold all gilts to maturity if I live that long!

    My experience with HL is that you can tick a 'reinvest income' box that does the reinvestment for free - I want to know if ii offer the same feature. I deliberately bought the gilts in the iWeb Sipp because I could do so online for £5 each issue! Now looking for a cheaper annual deal and the cash incentive. 
  • MrBadger1969
    MrBadger1969 Posts: 30 Forumite
    Name Dropper First Post Photogenic
    I've just tried calling ii to clarify about the reinvestment aspect, but was just endlessly on hold after being transferred... If anyone on the forum has the answer that would be great. 
  • coyrls
    coyrls Posts: 2,431 Forumite
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    I would be surprised if HL offer the facility to automatically reinvest coupons back into the same gilt.  I think their reinvest income option only applies to funds and shares.  I think the same would apply to Interactive Investor.
  • michaels
    michaels Posts: 28,002 Forumite
    Photogenic Name Dropper First Anniversary First Post
    I've just tried calling ii to clarify about the reinvestment aspect, but was just endlessly on hold after being transferred... If anyone on the forum has the answer that would be great. 
    I find II messaging support to be responsive
    I think....
  • MrBadger1969
    MrBadger1969 Posts: 30 Forumite
    Name Dropper First Post Photogenic
    If anyone is interested, I now have some definitive information. Interactive Investor and iWeb don't provide a facility for automatic coupon reinvestment, so the coupon payments appear as cash. Any reinvestment must be done manually, at the usual cost per trade.

    HL has two options for 'income' ; either for it to be automatically reinvested, or to appear as cash. The automatic reinvestment does apply to gilts (as I had thought), but the user-selected setting for what happens to income is a blanket setting that applies to all holdings. It is not possible to pick and choose per holding.

    So it is not possible to have high coupon conventional gilts providing immediate income, and low coupon IL gilts being reinvested to provide the anticipated GRY 20-odd years down the line.

    I just thought I'd report back in case this is useful to others.
  • michaels
    michaels Posts: 28,002 Forumite
    Photogenic Name Dropper First Anniversary First Post
    Thanks, helpful to me.  I am only planning on setting up my IL ladder 1 year before starting drawdown so hopefully won't have the same issue and can just leave the coupons in (hopefully interest earning) cash
    I think....
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