Cavendish Online - A Few Questions

parker1982
parker1982 Posts: 67 Forumite
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edited 20 April 2018 at 6:38AM in Savings & investments
Hi,

I've just signed up to Cavendish Online and selected the Vanguard LifeStrategy 80% Equity Acc through a stocks and shares ISA.

This is the first time I've used a stocks and shares ISA / Index Tracker so slowly learning. I'll only be doing £100 per month by direct debit to start with.

Please can you answer the following:

Cash Management Account
Is there any benefit to leaving cash in here for any reason?


Fees
Is there ever a need to pay Cavendish fees directly or do they just take the fees from the ISA funds?


Lump Sum
I've read posts on the forum which state that there lump sum amounts must be at least £1000.
Which document shows this?


Monthly Investment
Is this £50 per month in total or per fund?


Customer Service
If I have any questions or need help, when would I contact Cavendish and when would I contact Fidelity?

Comments

  • talexuser
    talexuser Posts: 3,498 Forumite
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    Cash account - not a lot of point, only if you want to wait to invest for some reason, and even then you may as well have the money somewhere earning better interest.

    Fees - taken directly by Fidelity with Cavendish 0.05% included. Vanguard take their fees from the fund internally.

    Customer service - email Cavendish, they are a low cost operator so this is cheaper for them than phone and they always reply next day in my experience. You can contact fidelity direct but always mention you are a Cavendish customer.

    Smaller sums - afraid I don't know. Email them.
  • Vortigern
    Vortigern Posts: 3,243 Forumite
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    Cash Management Account - Is this outside the ISA wrapper, and would they take their fees from this account, rather than having to sell some of your units to pay the fees?
  • Henry46
    Henry46 Posts: 5 Forumite
    Its worth leaving a little bit in cash unless you are happy for them to sell a small fraction of your fund units to pay the 0.25% fee
  • parker1982
    parker1982 Posts: 67 Forumite
    First Anniversary First Post
    Thanks for the replies.

    The Cash Management Account is outside the ISA wrapper, I wasn't entirely sure if it could be used as an alternative to the selling of funds but your replies have confirmed it is so I'll make sure to leave something in there now that I know this.
  • talexuser
    talexuser Posts: 3,498 Forumite
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    The cash management account can only be used to pay the Cavendish 0.05% fee, you can work out whether it is worth it for this tiny amount. It cannot be used to pay the Fidelity 0.2% fee.

    It also cannot be used to top up your ISA or investment account. You have to withdraw the money back to your bank and send it back again to do that.
  • Vortigern
    Vortigern Posts: 3,243 Forumite
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    talexuser wrote: »
    The cash management account can only be used to pay the Cavendish 0.05% fee, you can work out whether it is worth it for this tiny amount. It cannot be used to pay the Fidelity 0.2% fee.
    Are you sure? I used to have a Cavendish/Fidelity ISA (but no cash management account) and I thought that Fidelity deducted both their own fee and the Cavendish fee.
  • talexuser
    talexuser Posts: 3,498 Forumite
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    Positive.

    https://www.cavendishonline.co.uk/investments/existing-clients-login1

    click on cash management account link.
  • Tom99
    Tom99 Posts: 5,371 Forumite
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    Can you still though hold a small amount of cash in the ISA (not the separate cash management acct) from which the 0.25% fee is taken rather than selling fund units?
  • Vortigern
    Vortigern Posts: 3,243 Forumite
    First Anniversary Photogenic Name Dropper First Post
    talexuser wrote: »
    Positive.

    https://www.cavendishonline.co.uk/investments/existing-clients-login1

    click on cash management account link.

    I moved away from Fidelity before they launched the new platform. The cash management account does look rather useless while those restrictions are in place.
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