Drawdown - finer points.

squirrelpie

One thing to be aware of with HL's arrangement is that they treat the SIPP and the drawdown pots separately in terms of fees. So if you're using exchange-traded investments in both pots then you could pay £400 a year instead of £200. But they don't charge for cash held in the drawdown pot, and do pay interest.

Linton

AJBell use the % crystallised method.  There is only one investment pot and a % crystallised figure is recalculated each time you pay money in and out.

Veloflyer

  HL do seem to be increasingly expensive compared with Bell. Thoughts welcome......

MallyGirl

It depends on the value being held. HL are known to be a bit expensive and charge a percentage. I am with Interactive Investor as they charge a fixed fee that is much cheaper than the percentage based  providers would charge 

DRS1

Veloflyer said:

  HL do seem to be increasingly expensive compared with Bell. Thoughts welcome......

One of the complaints about HL is that they charge separately for the SIPP and the SIPP Drawdown accounts so you could potentially be paying double the fees.

However some people much prefer the HL approach of keeping the assets of the two accounts separate so that they invest differently in the two.

Jerben

I have the money in the HL Drawdown pot in cash, so pay nothing in charges for this pot.
No real point in ‘investing’ it as it is due to be withdrawn in the short term (1-2 years).
It earns a bit of interest, (currently about 3%),