SIPP and LISA fees

masonic

https://forums.moneysavingexpert.com/discussion/comment/81896322#Comment_81896322

@eskbanker gave you a clear answer with supporting evidence here:

https://forums.moneysavingexpert.com/discussion/comment/81895049#Comment_81895049

You are only required to set up a DD if you wish to be on the Core plan. If you do not set up a DD then you will be upgraded to the Plus plan and have the £14.99 per month debited from your account.

Personally, I would not opt to pay an extra £9 per month for the privilege of paying from the account (though the free monthly trade and lower additional trading costs may swing it for you).

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/81896498#Comment_81896498

To be fair, the document I linked does contain two self-contradictory explanations, which is the inconsistency that @fistfulofsteel is trying to decode!

masonic

https://forums.moneysavingexpert.com/discussion/comment/81896513#Comment_81896513

Which two statements specifically? Because there's no contradiction between:

1. You don't have to pay by DD
2. You do have to pay by DD to be on the Core plan
3. To pay from the investment account you must be on Plus or Premium

Is there something else?

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/81896522#Comment_81896522

My understanding is that they're specifically looking to use the Core plan without paying by DD, so there is contention between:

You don’t have to pay your monthly fee by Direct Debit but you’ll have to be on our Plus or Premium plans to pay from an investment account instead.

and:

The easiest way to pay your monthly fee is by Direct Debit. And it’s the only way to pay your monthly fee if you’re on our Core plan.

in that if there's a desire to pay Core fees manually by a method other than DD or from the investment account (e.g. bank transfer, for example), the first statement implies that this is possible but the second suggests not.

masonic

https://forums.moneysavingexpert.com/discussion/comment/81896533#Comment_81896533

I can confirm from personal experience that II offers no payment methods besides DD and investment account deduction.

So the choice by plan is between:

• Core: DD only
• Plus/Premium: DD or investment account deduction

Or by available payment method:

• DD: Core/Plus/Premium
• Investment account deduction: Plus/Premium

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/81896534#Comment_81896534

Fair enough, the thought did cross my mind when posting that there might not be any other payment options, but I didn't see it mentioned in the document! They could improve their wording though, to be fully consistent and plainer, i.e. instead of:

You don’t have to pay your monthly fee by Direct Debit but you’ll have to be on our Plus or Premium plans to pay from an investment account instead.

it could say something more like:

If you're on the Core plan the only option is to pay your monthly fee by Direct Debit but if you’re on our Plus or Premium plans you can choose to pay from an investment account instead.

masonic

https://forums.moneysavingexpert.com/discussion/comment/81896544#Comment_81896544

I certainly agree that would be clearer, but I guess they are being lazy and leaving it vague so that it's one less document they will have to update if they choose to offer new options for their Plus/Premium members in the future. They don't offer a cash management account (c.f. Fidelity) required for "push" funding, which really only leaves CPA as an alternative method they could use to directly pull the fees from the customer, and they don't have the invoicing system of HL where you can log in each month to pay upcoming charges by debit card (as opposed to topping up your investment account).

For reference, they are also quick to threaten to charge interest on negative account balances, though I am not sure they have the contractual right to do so.

nakie999

That's a clever way to look at the tax relief. Since you’re adding fresh capital specifically to cover the fee rather than selling down your existing holdings, using the SIPP contribution to get that 25% top-up effectively discounts the cost of the fee for you.

You've correctly identified the difference between the LISA and the SIPP here. With the LISA, you're hitting the hard cap, so paying fees externally protects your contribution room. With the SIPP, unless you're hitting your annual allowance, the tax relief makes paying from within the wrapper more "out-of-pocket" efficient. It seems like your logic holds up perfectly for your specific situation.

Altior

I had a message from them to say IE are now accepting transfers in from most platforms.