Hargreaves Lisa bonus - too low to reinvest
Herbalus
Posts: 2,634 Forumite
I am investing £100 per month into the LISA with Hargreaves lansdown, so the bonus each month is £25. However, HL does not automatically reinvest this so the £25 sits in cash. I invest into funds.
I cannot add this to any of my fund holdings as whilst the minimum for a regular investment is £25, the minimum for a one-off transaction is £100. It looks like I will have to wait until the cash reaches £100 before I can use it.
Is there a way around this? Or another type of investment I could investigate? I could not readily see I could set up a regular investment from the cash balance (this appears to be linked to the direct debit amount), unless somebody can tell me otherwise and I will probe further into their website.
I cannot add this to any of my fund holdings as whilst the minimum for a regular investment is £25, the minimum for a one-off transaction is £100. It looks like I will have to wait until the cash reaches £100 before I can use it.
Is there a way around this? Or another type of investment I could investigate? I could not readily see I could set up a regular investment from the cash balance (this appears to be linked to the direct debit amount), unless somebody can tell me otherwise and I will probe further into their website.
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Do wait for another, more knowledgeable poster to confirm, but my belief is that once you've purchased a fund with an initial purchase price, then you can make subsequent purchases of that fund at any amount you like.
I'm in the same boat - I have 2x holdings in my LISA, both of which have a £100 min transaction, and my second bonus (£62.50) was paid yesterday.
I expect I'll be able to purchase £30's worth of each tonight when I get home, since I already hold more than £100 of each fund.
*EDIT* Personally I'm happy that the default position if that you have to manually reinvest the bonus - I wouldn't be happy if I had no control over that.0 -
I thought you could set up a regular investment instruction that wasn't included in the total direct debit pull each month, but it's been a long time since I've had any dealings with HL.
Alternatively you could invest £125 per month manually, combining the trailing bonus payment with your new funds.0 -
I thought you could set up a regular investment instruction that wasn't included in the total direct debit pull each month, but it's been a long time since I've had any dealings with HL.
I've just phoned them (as I probably should have done to start with), and they call it a phasing-in instruction, but only on minimums of £100 so of no help in this scenario.
Their regular savings called "Monthly Savings" on their online screens, work from money deposited by direct debit, so this isn't possible also.
Still, might help somebody else.0 -
I see your dilemma. You could consider a small optimisation whereby you change your "monthly savings" to £25 per month and top up by £75 per month manually. You could then manually invest £100 per month including the trailing bonus payment when it is credited. If it's worth the extra hassle.This is an option, but then I'd lose a DD....
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Thats odd as I put £100 in a HL SIPP and I could reinvest the extra £25.
Though I had somehow managed to invest £100 in a fund with a minimum requirement of £500 somehow.
On a similar topic, I have my dividends set to manual, as the automatic reinvestment option requires a minimum of £10 to reinvest, and then charges you £10 for the privilege!0 -
I see your dilemma. You could consider a small optimisation whereby you change your "monthly savings" to £25 per month and top up by £75 per month manually. You could then manually invest £100 per month including the trailing bonus payment when it is credited. If it's worth the extra hassle.
I was thinking along these lines. Though I am invested in 3 funds so that taxes the allocation I had sorted, given each manual investment has to be 100.
Could be done, but there comes a point where you take stock of your financial contortion and wonder what on earth you're doing. All through keenness to get the £25 bonus invested now as opposed to in 3 months time
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Thats odd as I put £100 in a HL SIPP and I could reinvest the extra £25.
Though I had somehow managed to invest £100 in a fund with a minimum requirement of £500 somehow.
Could be a difference of fund, or pension vs LISA I suppose.
I am invested in HSBC FTSE250, L&G International Index Trust, and iShares emerging markets equity index.0 -
Minimum investment is indeed £100. The problem with regular investment is that they charge you something like £1.50 each time, so it isn't worth doing.0
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Surely there is no charge for buying and selling OEICs and UTs?snowqueen555 wrote: »Minimum investment is indeed £100. The problem with regular investment is that they charge you something like £1.50 each time, so it isn't worth doing.0
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