Understanding basic S&S ISA charges

j_netprofit

Can somebody please help confirm/correct these examples?

I've not added the cost of actually purchasing the fund so maybe guide me there. I'm not sure I've calculated the on going charge correct either?

There is no monthly investment, but ongoing let's say you whack the 20k in, in one go each April.

Have I covered all bases?

Example: 100k investment in HSBC FTSE All-World index fund, on going charge 0.13%.

- -

Dodl (Service Fee 0.15%) £150 // On going charge for investment (0.13%) £130. Total Charge £280 Annually
AJBell (Service Fee 0.25%) - £250 // On going charge for investment (0.13%) £130. Total Charge £380 Annually

HL (Service Fee 0.45%) - £450 // On going charge for investment (0.13%) £130. Total Charge £580 Annually
Interactive Investor (Service Fee £11.99 p/m) - £143.88 // On going charge for investment (0.13%) £130. Total Charge £273.88 Annually

- - 

Or have I made a complete hash of these numbers...?

boingy

If you are thinking about a single lump sum each tax year then add iWeb to your list. No service fee. You pay a £5 dealing charge, of which you would have only one each year.

jimjames

I'd also suggest adding iWeb. Long term buy & hold it's hard to beat and is backed by Halifax. But in answer to your question the numbers look ok.

eskbanker

There isn't really any point in factoring in the OCF when comparing ongoing costs, as it's purely an internal cost within the funds, rather than something you explicitly pay to the platform - no harm in considering it during fund selection, but once chosen, a given fund will have the same OCF regardless of where you hold it, with the occasional exception of platform rebates.

j_netprofit

jay_ftw said:

Dodl (Service Fee 0.15%) £150 
AJBell (Service Fee 0.25%) - £250 

HL (Service Fee 0.45%) - £450
Interactive Investor (Service Fee £11.99 p/m) - £143.88 

Thanks for the advice re:iWeb guys.

OK let's ignore the OCF, iWeb will cost a whole FIVER annually in the example above?

Can some please explain the 'Fund Charges' and when/where they would be applied? https://www.iweb-sharedealing.co.uk/assets/costsandcharges.pdf

eskbanker

jay_ftw said:
Can some please explain the 'Fund Charges' and when/where they would be applied? https://www.iweb-sharedealing.co.uk/assets/costsandcharges.pdf

That IWeb page has caused grief before, with its overstatement of typical transaction costs, which, like OCF, are internal to the fund rather than a separate charge to the investor.  They're less predictable than the OCF, but according to the likes of https://www.fidelity.co.uk/factsheet-data/factsheet/GB00BMJJJF91-hsbc-ftse-all-world-index-c-acc/key-statistics, they were only 0.02% for your chosen fund when last measured - click on the charge name for a description....

j_netprofit

eskbanker said:

jay_ftw said:
Can some please explain the 'Fund Charges' and when/where they would be applied? https://www.iweb-sharedealing.co.uk/assets/costsandcharges.pdf

That IWeb page has caused grief before, with its overstatement of typical transaction costs, which, like OCF, are internal to the fund rather than a separate charge to the investor.  They're less predictable than the OCF, but according to the likes of https://www.fidelity.co.uk/factsheet-data/factsheet/GB00BMJJJF91-hsbc-ftse-all-world-index-c-acc/key-statistics, they were only 0.02% for your chosen fund when last measured - click on the charge name for a description....

So just to be clear, the fees that iWeb are referring to in their doc are fees you'd be subject to with any provider anyway?

eskbanker

jay_ftw said:

eskbanker said:

jay_ftw said:
Can some please explain the 'Fund Charges' and when/where they would be applied? https://www.iweb-sharedealing.co.uk/assets/costsandcharges.pdf

That IWeb page has caused grief before, with its overstatement of typical transaction costs, which, like OCF, are internal to the fund rather than a separate charge to the investor.  They're less predictable than the OCF, but according to the likes of https://www.fidelity.co.uk/factsheet-data/factsheet/GB00BMJJJF91-hsbc-ftse-all-world-index-c-acc/key-statistics, they were only 0.02% for your chosen fund when last measured - click on the charge name for a description....

So just to be clear, the fees that iWeb are referring to in their doc are fees you'd be subject to with any provider anyway?

Yes, the OCF and transaction fees are both internal to the fund management so apply regardless of platform choice.

j_netprofit

Does iWeb have an app? Not a dealbreak by any means but found the modern banks (chip dodl) very convenient. Can't seem to see anything in iOS app store. 

eskbanker

jay_ftw said:

Does iWeb have an app?

I don't believe so - they tend to come across as being quite cheap and cheerful, so presumably their lack of annual platform fees leaves less in the pot for platform technology investment....

boingy

No app and, yes, their website is somewhat old-fashioned but it is very functional and has everything you need. And you probably don't need to be checking your S&S ISA on your phone every day!