interactive investor simplifies pricing
From 1 October 2020 a number of administrative charges are to be removed to offer better value.
2nd September 2020 12:17
by Jemma Jackson from interactive investor
From 1 October 2020 a number of administrative charges are to be removed to offer better value.
- SIPP: ii scraps range of admin charges, including income drawdown fee
- Simplified rate card available here
interactive investor, the UK’s second largest direct to consumer investment platform, is simplifying its pricing, to create even better value and help make investing simple, with changes coming into effect from 1 October 2020.
Most of these changes relate to the interactive investor SIPP, where a number of administrative charges are to be removed.
The £10 per month income drawdown fee will be scrapped, along with and a number of other charges. For example, there will no longer be a charge for UFPLS (which allows pension holders to withdraw some or all of their uncrystallised funds as a lump sum). Pension sharing and annuity purchase fees will also be scrapped (see table).
All SIPP investors will pay is £10 per month for their SIPP, along with a service plan charge. The service plan charge, from £9.99 per month, gives customers access to a trading account, a stocks and shares ISA, and as many free junior ISAs as they have children (see notes to editors for more information on service plan charges). All for a transparent, fair flat fee which stays the same, even as customer’s wealth grows.
Richard Wilson, CEO, interactive investor, says: “Last year we switched to a much- welcomed Netflix-style monthly subscription charge. Earlier this year we successfully introduced free regular investing.
“All this to make things simple and clear so customers can choose what is best for them and have an easier investing experience.
“Now we are going one step further and cutting our 8 pages of charges down to 2. The biggest winners here are customers of our award-winning pension who pay £10 a month for their SIPP. Now all other SIPP administration charges, including drawdown fees, have been scrapped.
“So, as well as making life simpler for our existing 350,000 plus customers, it makes financial sense for even more to take advantage of our simple flat fees.”
The changes:
| Current | From 1 October 2020 | |
|---|---|---|
| Sipp - Monthly Drawdown fee | £10 | £0 |
| Sipp - Pension sharing on divorce | £300+VAT | £0 |
| Sipp - Payment of death benefits | £200-£500 +VAT | £0 |
| Sipp - Review of capped income drawdown | £50+VAT | £0 |
| Sipp – UFPLS | £50+VAT | £0 |
| Sipp - Small pots | £50+VAT | £0 |
| Sipp - Annuity Purchase | £75+VAT | £0 |
| Sell out fee due to non-payment (trade) | £40 | £0 |
| Registered post | £10 | £0 |
| Valuation of holdings for Probate (per line) | £10 | £0 |
| Large trades: (UK) | ||
| £100k-£500k - Investor plan | £40 | £40 |
| £100k-£500k - Funds Fan plan | £40 | £40 |
| £100k-£500k - Super Investor plan | £36 | £40 |
| £500k+ Investor plan | £70 | £40 |
| £500k+ Funds Fan plan | £70 | £40 |
| £500k+ Super Investor plan | £66 | £40 |
| Urgent GBP withdrawal over 100k | £25 | £15 |
| Urgent EUR withdrawal | € 30 | £15* |
| Withdrawals other currencies | Varies | £15* |
charged at an equivalent rate of £15.
Individual investor plans
Importantly, there has been no change to our flat-fee charging model.
Each plan – Investor, Funds Fan and Super Investor – has a fixed monthly flat fee, in pounds and pence, and different trade charges to suit any investment style. Moving between plans is easy and can be done at any time. Moreover, it is free to join and free to leave.
Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.
These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.
Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.