New HL fee structure from 01/03/26

FIREDreamer

https://forums.moneysavingexpert.com/discussion/comment/81879592#Comment_81879592

I get the feeling that heads might roll at HL over this disasterous implementation of ‘lower” charges. 🤣

Someone has messed up big time.

Wonder how much of a hit assets under management has taken here?

flopsy1973

Hi as others have done a lot of research here and after consulting HL fees calculator it shows I will be better off with my ISA, but my GI A I will be much worse off . This has bee the wake up call to how much HL were taking in fees for years so need to switch to another provider. I already have iweb account but quite fancy idea of one of the cashback offers. Below is list of what HL have with me

ISA 285k Inc ETF of 39K

GIA 60k mostly shares with one small foreign holding paying dividends

So anybody similar or suggestions where to start looking ? Thanks

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/81879650#Comment_81879650

Although if they mainly lose customers, who are paying peanuts/zero for their ISA or GIA, but still getting the full service, then maybe it was deliberate. Although it seems to have had some unexpected effects on other customers,

FIREDreamer

https://forums.moneysavingexpert.com/discussion/comment/81880214#Comment_81880214

Even for shares (including ETFs) they were doing well enough out of me with dealing fees, even ignoring the £45 annual ISA fee, the extra £105 on the ISA plus a new fee for the GIA made me move elsewhere. I have saved money plus the three cashbacks are a handy bonus.

My shares were just sitting there on a database with little intervention needed really.

DT2001

On going back to DIYing in April I had to move my SIPP which went to Fidelity. The ISAs at Fidelity went to HL so I didn’t have everything on one platform. I now have cash ISAs filled from TFLS so not as concerned about concentration of investment funds in one place. I only hold ETFs and ITs so had been capped at £45 at HL and £90 at Fid. Fidelity are offering £1500 cash back for staying 18 months. I think £90 cap is across the two accounts. My reinvestment of dividends from ITs will be rejigged - collect cash and manually invest into one IT rather than each one being reinvested as the 1/4ly div is paid.

phlebas192

https://forums.moneysavingexpert.com/discussion/comment/81880214#Comment_81880214

It will vary by customer, of course, but I expect they have been earning a fairly significant amount of interest from cash balances in recent years even for those who aren't paying much in fees. Not only are the rates they pay substantially lower than the amount they will be earning, but the "income account" trick (1) means that they are getting an average of 15 days entirely interest free on all dividends or other income where the customer doesn't manually move them.

(1) - dividends etc are paid into an income account which doesn't earn any interest. Once a month these are then paid out or swept up into the capital account where they do start earning interest. nb: you can & should move them manually to the capital account as soon as they are received.

disgruntled1234

One thing I'm still struggling to get clarification on is around automatic dividend reinvestment with Hargreaves. Their changes state that manually buying and selling units in a fund will attract a fee of £1.95 per transaction and they then go on to say that if you regularly invest then there is no fee, but they only seem to mention setting up a direct debit to regularly invest. I've maxed out my S&S ISA and so can't obviously add any more, but if I set my income instruction to automatically re-invest, do these trades then still attract the £1.95 fee?

Maybe I've completely missed something, but it would seem unfair that automatic re-investment of dividends would also attract a charge.

thingswerentthisbadinmyday

https://forums.moneysavingexpert.com/discussion/comment/81880941#Comment_81880941

My reading of the situation - and what I’m expecting to see - is that my dividend reinvestments (shares, Investment Trusts) will continue to be free of charge.

In my case, the £1.95 fee for dealing in OEICs/funds will be a right pain as I habitually make small (£100/200) investments within my drawdown account - my version of “pound cost averaging”, I suppose.

But this behaviour is going to have to stop after the 1st March.

What I don’t know - and I haven’t investigated because it doesn’t affect me - is what happens if you have income units in an OEIC and require reinvestment of the income distribution back into the OEIC.

disgruntled1234

Thanks @thingswerentthisbadinmyday .

I'm hoping that's also my understanding, although exactly like you, I tend to make relatively small manual re-investments into my SIPP and S&S ISA each month and that will have to stop, which is annoying as sometimes, a dividend is paid from one fund and I want to re-invest that money into a different fund, which will then of course cost me £1.95.

thingswerentthisbadinmyday

Interestingly, I had an e-mail from HL yesterday saying that they had been reviewing my past trading ‘habits’ - i.e. numerous investments of under £200 into OEICs - which from 1st March would no longer be free.

It may appear inconsequential to some, but I have to say that I like the way I have been able to trade in OEICs up until now. I am going to be faced with the prospect of either having to change my behaviour (not keen), increase the amounts but decrease the frequency (probably tolerate this), pay frequent dealing charges of £1.95 (not happening) or transfer somewhere which offers free fund dealing.