SIPP provider recommendations
Discussion
After years of being happy with HL I have today lost my rag with them over what I consider a ridiculous £25 charge to close down an old ISA and pay out my proceeds. It might be a tiny sum but its the principle of having to pay a closure fee on the account to access my own money or be forced to leave the ISA open indefinitely!
So I am considering moving my entire portfolio which currently consists of said ISA, a SIPP and a boggo standard S&S account. The ISA will be closed as above and I now use another provider for the annual ISA entitlement. It's the SIPP primarily that I would be interested to hear of alternatives for a home. I would anticipate that the S&S can also follow suit in transferring.
I do trade within both the accounts semi-regularly (once every 1 or 2 months) and so transactional costs are of main concern to wherever I head. Low cost management and transactional fees for buying/selling shares are therefore really the key. A relatively straight forward website and app would also be helpful as I am a bit of an IT luddite (hence probably why HL had my business for so many years due to the easy to use website).
So I am considering moving my entire portfolio which currently consists of said ISA, a SIPP and a boggo standard S&S account. The ISA will be closed as above and I now use another provider for the annual ISA entitlement. It's the SIPP primarily that I would be interested to hear of alternatives for a home. I would anticipate that the S&S can also follow suit in transferring.
I do trade within both the accounts semi-regularly (once every 1 or 2 months) and so transactional costs are of main concern to wherever I head. Low cost management and transactional fees for buying/selling shares are therefore really the key. A relatively straight forward website and app would also be helpful as I am a bit of an IT luddite (hence probably why HL had my business for so many years due to the easy to use website).
Im with HL and I had similar issues a few months ago. I manage my childrens SIPPs and Funds and Shares "In Trust" Fund accounts. Each account has its own login but I manage them as "linked accounts" because I cant remember every single login for the accounts.
Every month I buy via direct debit to each account and buy shares from the FTSE 250 for my kids. Every month one of the accounts would send me two (in separate envelopes) my Buy Transaction receipt, the accounts in the other daughters name did not. Anyway, I got asked for £120 (£60 each for the SIPP and F&S Fund) because I was still on paper receipts rather than electronic receipts for one of the accounts. My fault because I didnt switch it off on one of the accounts. Unbelievable. They wouldn't back down despite have 3 SIPP, 1 ISA and 3 Shares and Funds accounts with them.
Every month I buy via direct debit to each account and buy shares from the FTSE 250 for my kids. Every month one of the accounts would send me two (in separate envelopes) my Buy Transaction receipt, the accounts in the other daughters name did not. Anyway, I got asked for £120 (£60 each for the SIPP and F&S Fund) because I was still on paper receipts rather than electronic receipts for one of the accounts. My fault because I didnt switch it off on one of the accounts. Unbelievable. They wouldn't back down despite have 3 SIPP, 1 ISA and 3 Shares and Funds accounts with them.
PurpleMoonlight said:
Why do people think that anyone in financial services should work for free?
They have children to feed too you know.
Not sure if you post is tongue in cheek so apologies if I am owed a whoosh here but...They have children to feed too you know.
I do not begrudge paying for services when I use services. As I say, I pay them management fees, purchase/disposal costs on transactions and whatever other cuts they get from the various things I use via their service.
What I do not enjoy is being met with a charge to close an account and access what is mine. In the same way I do not enjoy paying money at a cash machine to access my money.
Shnozz said:
Not sure if you post is tongue in cheek so apologies if I am owed a whoosh here but...
I do not begrudge paying for services when I use services. As I say, I pay them management fees, purchase/disposal costs on transactions and whatever other cuts they get from the various things I use via their service.
What I do not enjoy is being met with a charge to close an account and access what is mine. In the same way I do not enjoy paying money at a cash machine to access my money.
Mmm, I understand the irritation.I do not begrudge paying for services when I use services. As I say, I pay them management fees, purchase/disposal costs on transactions and whatever other cuts they get from the various things I use via their service.
What I do not enjoy is being met with a charge to close an account and access what is mine. In the same way I do not enjoy paying money at a cash machine to access my money.
Would it be free to withdraw all but a pound (or better yet, a penny!)?
& sorry, no idea on best alternative....AJBell pop up on MSE as generally low cost....
PurpleMoonlight said:
Did they achieve that by working for free then?
Unfortunately you haven't paid the £25 fee, so I am unable to respond and detail the multiple streams of fees and trail commissions that HL levy.However I would join HL and leave if Peter were to personally press the button to close my account.
Shnozz said:
Not sure if you post is tongue in cheek so apologies if I am owed a whoosh here but...
I do not begrudge paying for services when I use services. As I say, I pay them management fees, purchase/disposal costs on transactions and whatever other cuts they get from the various things I use via their service.
What I do not enjoy is being met with a charge to close an account and access what is mine. In the same way I do not enjoy paying money at a cash machine to access my money.
But you are begrudging paying for a service.I do not begrudge paying for services when I use services. As I say, I pay them management fees, purchase/disposal costs on transactions and whatever other cuts they get from the various things I use via their service.
What I do not enjoy is being met with a charge to close an account and access what is mine. In the same way I do not enjoy paying money at a cash machine to access my money.
Closing the ISA and sending you the funds involves work for HL.
Phil there's a comparison tool at the bottom of this page https://www.thisismoney.co.uk/money/diyinvesting/a...
I personally use iWeb, it's doesn't have all the bells and whistles or funds available that HL has but it is cheap and hence adequate for my needs.... For the S&S Trading is £5 a trade too...
It's effectively Lloyds trading as Halifax, trading as iWeb.... But cheaper...
Dyor though, it might not be for you.
H
Edited to add the SIPP part of iWeb isn't Lloyds/Halifax but AJBell.
I personally use iWeb, it's doesn't have all the bells and whistles or funds available that HL has but it is cheap and hence adequate for my needs.... For the S&S Trading is £5 a trade too...
It's effectively Lloyds trading as Halifax, trading as iWeb.... But cheaper...
Dyor though, it might not be for you.
H
Edited to add the SIPP part of iWeb isn't Lloyds/Halifax but AJBell.
Edited by HarryW on Thursday 1st November 18:39
I had a similar piss take fee from them in relation to the closing of a stocks and shares account (part of the proceeds of which were transferred into an HL SIPP!). When I told them I would be moving my ISA and SIPP elsewhere unless it was refunded, it was, so they will probably relent but you’ll need to escalate it.
I'd been happy with AJB You invest until very recently when I've seen a string of humans errors like getting sent a message through their app intended for someone else (!), and incorrect fund pricing. Also had to point out some mobile functionality their support staff were not even aware of.
As for the 25 account closure was that not disclosed to you when you opened the account? If not I'd be arguing against paying it on that basis.
As for the 25 account closure was that not disclosed to you when you opened the account? If not I'd be arguing against paying it on that basis.
bmwmike said:
As for the 25 account closure was that not disclosed to you when you opened the account? If not I'd be arguing against paying it on that basis.
I have no doubt it would have been within the T&Cs or a link therein to SIPP charges but I dare say I wouldn't read them in detail and I have been with HL for 15 + years so who knows. Just left a sour taste for what I consider is a part of the admin that should be provided without charge when you consider the plethora of charges I pay as part of the ongoing matters that they do for me.
Thanks all for the recommendations. I will start working my way through each to take a look.
^ Nutmeg? For a SIPP? You’ve got more reading to do...
It depends on what you want OP, and how comfortable you are with just getting on with it yourself.
HL has all the gloss and magazines which, funnily enough, need to be paid for.
Personally I’m tight as a badgers arse so was heavily fee driven.
Mine is with Charles Stanley. The management fee was 0.25%. b
ds raised it to 0.35%. Which is annoying. But, their platform has improved, they answer questions on the phone or by email quickly.
I also use AJBell for other things. Their mobile site is like how the internet looked in 1989. But their SIPP management fee is currently 0.25%.
I could move from CSD to AJB, but would have to go through the pain and fees of doing so, which would cancel the trivial cost reduction.
I was also interested in exit fees, ie drawdown etc at the back end, as at some point I’ll want to take it out. I’d say these are really worth looking at, given they are different for everyone, and the charges you incur will relate to what you do. No one is very cheap here, as it all involves work.
It depends on what you want OP, and how comfortable you are with just getting on with it yourself.
HL has all the gloss and magazines which, funnily enough, need to be paid for.
Personally I’m tight as a badgers arse so was heavily fee driven.
Mine is with Charles Stanley. The management fee was 0.25%. b
ds raised it to 0.35%. Which is annoying. But, their platform has improved, they answer questions on the phone or by email quickly.I also use AJBell for other things. Their mobile site is like how the internet looked in 1989. But their SIPP management fee is currently 0.25%.
I could move from CSD to AJB, but would have to go through the pain and fees of doing so, which would cancel the trivial cost reduction.
I was also interested in exit fees, ie drawdown etc at the back end, as at some point I’ll want to take it out. I’d say these are really worth looking at, given they are different for everyone, and the charges you incur will relate to what you do. No one is very cheap here, as it all involves work.
Edited by Croutons on Thursday 1st November 20:40
To be fair you're closing the account, so HL will no longer collect fees on it, yet they are duty bound by legislation to retain records and answer queries for up to 7 years, likely longer.
That £25 doesn't go anywhere near covering those costs and probably barely covers the admin of closing the account and making a payment to you. Something like that will need to be checked according to anti money laundering regulations etc. In the future I can only see these fees rising.
Fees are clear, they have to be by law and when they are changed or introduced there's usually an interim period to accept or close before they start up so really can't see what the beef is here to be honest.
HL are not the cheapest out there but they're one of the few that pick up the phone when you have a question and have what I consider to be the most reliable and easy to use on-line interface & app.
Do HL payout using BACS or CHAPs? A couple of providers I've dealt with charge £25 by chaps but offer free by BACS which takes a few days longer.
That £25 doesn't go anywhere near covering those costs and probably barely covers the admin of closing the account and making a payment to you. Something like that will need to be checked according to anti money laundering regulations etc. In the future I can only see these fees rising.
Fees are clear, they have to be by law and when they are changed or introduced there's usually an interim period to accept or close before they start up so really can't see what the beef is here to be honest.
HL are not the cheapest out there but they're one of the few that pick up the phone when you have a question and have what I consider to be the most reliable and easy to use on-line interface & app.
Do HL payout using BACS or CHAPs? A couple of providers I've dealt with charge £25 by chaps but offer free by BACS which takes a few days longer.
Edited by hornmeister on Friday 2nd November 16:49
Firstly, I am not sure why you are choosing to close your ISA and take funds out of a tax free environment that will be lost once you have done this, compared to keeping the tax free ISA status and taking the money from your general stocks & shares account.
With regard to your point on the £25 closure charge, whilst this is frustrating and excessive charges are all to common place (HL being no exception to this), as other have said, you are asking HL to do some work for you (close your account, report this to HMRC, sell your holdings to cash, forward this cash to your bank account and keep your records on file for a minimum of seven years) so it is not a surprise they are making a small fee for this.
Again it has already been said, but why don't you just call them in the morning and explain that you simply want to access some of your funds and are not ceasing to become a client. If they insist on charging an exit fee for what is effectively just a withdrawal you certainly will exit and cease to remain a client.
Do give some thought to keeping the funds in your ISA though and taking the money from your taxable account though.
With regard to your point on the £25 closure charge, whilst this is frustrating and excessive charges are all to common place (HL being no exception to this), as other have said, you are asking HL to do some work for you (close your account, report this to HMRC, sell your holdings to cash, forward this cash to your bank account and keep your records on file for a minimum of seven years) so it is not a surprise they are making a small fee for this.
Again it has already been said, but why don't you just call them in the morning and explain that you simply want to access some of your funds and are not ceasing to become a client. If they insist on charging an exit fee for what is effectively just a withdrawal you certainly will exit and cease to remain a client.
Do give some thought to keeping the funds in your ISA though and taking the money from your taxable account though.
Interactive Investor have just announced that they are removing their exit fees.
https://www.ii.co.uk/keeping-you-informed
"We believe that with our flat fee pricing, you will want to stay with us"
https://www.ii.co.uk/keeping-you-informed
"We believe that with our flat fee pricing, you will want to stay with us"
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