Is there a tipping point from when to switch from a % based ISA to a fixed fee ISA?

jihebe

Hi, I have been saving in a vanguard ISA for many years and the amount has now reached a fair amount. Given that Vanguards' fees are a % of the total assets with them, my fees have grown with the value. Due to this I was wondering if there is an easy way to know when to move my assets into another provider such as Interactive Investor which has a fixed fee of around £12 a month.

Has anybody done the same/got any advice on when I should be moving to minimise the fee i have to pay? thanks!

dunstonh

 Due to this I was wondering if there is an easy way to know when to move my assets into another provider such as Interactive Investor which has a fixed fee of around £12 a month.

When you see the Vanguard service change go above £144 for the year.

ColdIron

Looking purely at the annual cost and ignoring any and all other factors it would be:

143.88 / 0.0015 = £95,920

eskbanker

It's not difficult to work it out, but obviously needs actual figures rather than "a fair amount" and "fees are a % of the total assets"!

Total payable to Vanguard annually = balance x fee%

Total payable to II = £144

Substitute the actual numbers and compare....

jimjames

You're also only comparing against 1 alternative. Others like iWeb have no fees but charge for transactions. If you don't have any transactions then it will be cheaper at a much lower portfolio level.