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New HL fee structure from 01/03/26
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Select the "cash" tab and then the "income and loyalty bonus" link. There is then a link on the right of the screen to "Transfer your income balance to your capital account now"
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If you go to the Cash tab online, then select the Income and Loyalty Bonus tab, you should see an option to "Transfer your income balance to your capital account now". I used to do this religiously but stopped some time back. It didn't occur to me that I didn't earn interest until it was in my capital account.
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This is what they told me:
"Once you have logged into your account, from the ‘Portfolio overview screen’ that summarises your account values, select the relevant account. This will bring up the ‘Stocks’ tab and you will see a list of your current holdings within this account. From here, click on the 'Cash' tab and then select the 'Income and loyalty bonus' tab. To move all or part of the income balance, select 'Transfer your income balance to your capital account now' on the right hand side of the screen.
This will present you with a screen displaying the amount available to transfer and the description of where that amount came from. You are able to simply enter an amount of income to be transferred in the 'How much would you like to transfer?' box, or alternatively you can select the specific income to be transferred by selecting the appropriate tick box to the right of each entry in the table.
You can then request a withdrawal to your nominated bank account by selecting the 'Withdraw Money' tab’. Please then follow the prompts to instruct the withdrawal."
What a pain!
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Many thanks phlebas. I should have looked more closely!
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Is your "What a pain" ironic?
Two mouse clicks, enter amount, one mouse click. What a pain 😂
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If other financial institutions inserted such totally unnecessary steps they'd be quite rightly condemned for doing so. It seems like a right pain to me to have to take any manual steps each time you receive income for compounding to commence when others will simply credit the income to an interest bearing account from the outset. HL ought not be using such sneaky tricks to retain interest earned on these cash balances. The FCA has raised concerns about practices like this and have threatened to take action.
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For what it's worth, IE have a great feature (imo) for dealing with new/residual cash/income : AutoInvest
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Can I just check my understanding of what is happening here?
If I receive a dividend on (say) the 14th of the month. Even with standing instructions to re-invest, I know that it will not be re-invested until the 11th or 12th of the following month (Actual example - divi received 14th Jan, reinvested 12th Feb).
I can see that this was initially credited to my Income account and stayed there until re-investment, at which point it was switched to the Capital account and re-invested from there.
And for the duration of the time spent in my ‘Income and Loyalty bonus’ account, it earned no interest? Is this correct?
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Yes, that's correct. See earlier post from @phlebas192 :
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But if I manually transfer the dividend to Capital, it then earns interest?
What then happens to the standing instruction to re-invest dividends?
Is it still carried out or does the fact that I have moved the dividend out of the Income account (where I imagine the HL system expects to find it), mean that the divi re-investment doesn't take place?
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