Interactive Investor SIPP Help

j_netprofit

Hi guys,

II SIPP is all very new to me so any help from anyone familiar with the platform would be great.

I believe the fee is £5.99 a month (until I reach £50k when it rises to £12.99 a month) within that fee you get x1 free trade a month. 

I have set up a direct debit which from what I gather can only be on the 12th day of the month?

Next I have chosen my free regular investment and obviously put the same amount as my direct debit.

Is it literally as straight forward as they do the rest? 
If so when is my investment made?

Periodically I understand I'll get the 25% government top up which will go into my cash account?

I believe I can, month by month add 'extra investment this month' so I would need to personally/manually do that to add that gov top up?

I'm pretty sure what I'm trying to do is very common and straight forward so apologies if I've explained it in an awkward way or overcooked it.

MallyGirl

I don't make a regular investment to my SIPP with II but I do to my ISA. DD is taken on the 12th and they buy my chosen fund with it approx 5 working days later.
I am sure that the gov 'top up' will happen automatically - and will likely be invested in the same funds/proportion as the regular contribution that you make - but I am sure someone with actual experience will be along to confirm that.

j_netprofit

Ok that's good to know re:12th I was worried I was missing something.

Again good that the gov top up happens automatically but I'd have thought I would need to instruct where it went, or perhaps it goes wherever that taxed money was invested?

MallyGirl

jay_ftw said:

Ok that's good to know re:12th I was worried I was missing something.

Again good that the gov top up happens automatically but I'd have thought I would need to instruct where it went, or perhaps it goes wherever that taxed money was invested? 

That would be my assumption but I don't know for sure

DeLaSole

Hi jay,

On my wife's II Sipp, her DD is being taken on the 12th and that money goes to the cash wallet.

Her tax relief, interest and dividends so far have also gone into the cash wallet of the Sipp.

Her regular investments have tended to be bought from the cash wallet around the 5th or 6th it appears, and when tax relief has arrived bumping the cash wallet, she's just selected to do a 'one-off' extra top-up into those monthly investments. This still uses the usual monthly investing feature and comes at no cost. I'm unaware she gets any trade free though: there is never a trading credit given to her and didn't think that was part of the £12.99 offer (but I may be mistaken).

I'm used to Fidelity, whereby tax relief follows the instruction of the regular investment chosen to create that tax relief. As far as I can see, that's not the case with II though.

Best wishes.
 

Pat38493

jay_ftw said:

Hi guys,

II SIPP is all very new to me so any help from anyone familiar with the platform would be great.

I believe the fee is £5.99 a month (until I reach £50k when it rises to £12.99 a month) within that fee you get x1 free trade a month. 

I have set up a direct debit which from what I gather can only be on the 12th day of the month?

Next I have chosen my free regular investment and obviously put the same amount as my direct debit.

Is it literally as straight forward as they do the rest? 
If so when is my investment made?

Periodically I understand I'll get the 25% government top up which will go into my cash account?

I believe I can, month by month add 'extra investment this month' so I would need to personally/manually do that to add that gov top up?

I'm pretty sure what I'm trying to do is very common and straight forward so apologies if I've explained it in an awkward way or overcooked it.

I assume that when you set up the regular investment you chose a fund or some kind of investment to put it into?  With SIPPs it's actually the fund(s) you are invested in that determines the growth, so you need to keep an eye on what you are invested into, based on your long term goals.  If you want to post it here you will probably get some comments.

Also - if you make any one off payments into your account, you will then need to go and specifically invest them into something otherwise they will just sit there as cash and only earning a small interest rate.

j_netprofit

Just bumping this thread incase any other ii users missed it.

Thanks!

MallyGirl

I would just send them a secure message- I have always found them quick to respond 

dreamypuma

I have just spoken to ii this morning around some queries on transferring my SIPP and trading process / costs. I've narrowed my search down to ii, due to their fixed fee structure and access to wider range of funds. (beneficial to me due pot size)

To be honest they didn't fill me with confidence. Transferred several times, and only to get vague answers.

My understanding is that under their Pension Builder plan at £12.99pm they provide "Free regular trading"

My question was, is any tax relief applied as cash or automatically reinvested into the funds that attracted the relief (as with Vanguard)?

The main issue being that ad-hoc trades attract a fee of £3.99 per trade and paying this on a monthly basis to reinvest the tax relief detracts from the low monthly charge. 

I was advised that the tax relief could be reinvested for free, under the free regular trading. No explanation as to the process behind this.

I'm a bit unsure now, the system doesn't seem as "agile" as I had anticipated and I see myself paying trading fees over and above the monthly fee.

dharm999

Tax relief is applied as cash

free regular trading is easy, just log in to your account and one of the options is regular trading.  Choose the investment, and value you want to invest and they do the rest.  The tax relief cash will be used to fund the purchase

dreamypuma

dharm999 said:

Tax relief is applied as cash

free regular trading is easy, just log in to your account and one of the options is regular trading.  Choose the investment, and value you want to invest and they do the rest.  The tax relief cash will be used to fund the purchase

So in my simple logic, I should separate out the notion of monthly contribution and focus on what my regular cash balance is on the platform? i.e.: my free regular trade is Contribution + relief split across and seeding the funds that I have selected.

I currently invest in two funds monthly distributed 95% and 5% - Is this this still possible under the "free regular trading" provision?

With my current provider I often vary my contributions slightly. Can this be done periodically without penalty?