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ISA Charges
Do you have to pay charges to manage a cash ISA? I thought they were just fixed rate savings accounts.
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Who is saying they would charge for a cash ISA?
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Who is saying they are fixed rate?
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I currently hold two ISAs. A GIC ISA and a GIC GIA (?) and I am being charged to manage them. I took them out in November last year and so far I have paid two lots of charges. The charges are not high but surely this is eating into my interest,
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Fixed rate savings accounts have charges too. Nothing is provided for free.
Anything that's deposit-based tends to have implicit charges. Anything that's investment-based tends to have explicit charges. With implicit charges, you don't see what the physical charge is. It's there, but you just don't know what it is. With explicit charges, you physically see it.
I currently hold two ISAs. A GIC ISA and a GIC GIA (?) and I am being charged to manage them. I took them out in November last year and so far I have paid two lots of charges. The charges are not high but surely this is eating into my interest,
You don't currently have a cash ISA. The HSBC GIC ISA is a stocks and shares ISA. And the GIC GIA is a GIA.
In other words, you have an investment wrapper not a cash wrapper. Investment managers can hold cash on them, but charges are explicit. Not implicit.
The charges are not high but surely this is eating into my interest,
And if you held a cash ISA where you couldn't see the physical charges, they would still be eating into your interest. You just wouldn't know it.
I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
These are not Cash ISAs.
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Just to add to the above comments, it's entirely possible that you won't actually be earning interest as such anyway, so you should prioritise understanding exactly what you've got into and how different it may be from what you really wanted…
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Are they HSBC?
I've got a pair of accounts like these with Charles Stanley Direct, opened just for a TCB cashback deal.
Funds have been chosen to minimise charges (which are small in any case).
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