Interactive Investor, the popular savings and investment platform where members pay a monthly subscription fee has introduced a new type of SIPP account.
Interactive Investor new SIPP account
Interactive Investors or II was recently sold to fund manager ABDN by US private equity firm JC Flowers, for £ 1.50 billion. II operates in the highly competitive D2C or direct-to-consumer investment and savings market.
Firms within the sector often tweak their offering to ensure that they remain competitive in comparison to other platforms and brokers (read our full interactive investor review here).
On this occasion, however, Interactive Investors isn’t just rearranging the deck chairs it’s adding a new product to its lineup in the shape of a new SIPP or self-invested pension plan under a brand known as Pension Builder.
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In keeping with II’s business model, the SIPP will operate on a subscription model with a flat fee of £12.99 per month.
AJ Bell and Hargreaves Lansdown, Interactive Investor’s biggest competitors charge SIPP fees based on the value of the portfolio, ranging from 0.25% to 0.45% per annum.
You can compare SIPP accounts here ( and junior SIPPS) for more information on market access and overall fees.
Though both AJ Bell and Hargreaves Lansdown cap their maximum charges at £120.0 and £200.0 per annum, respectively.
II SIPP members will pay £7.99 per trade on UK and US shares and ETFs.
Clients can invest regular sums into their SIPP account, and they can also upgrade their account to include an ISA, and as many junior ISA accounts, as they have children, for an additional £7.00 per month.
However, in a break with tradition and the operation of the company’s other accounts, none of the monthly subscription fees will be rebated against trading costs.
Whether that’s the influence of the new owners it’s too early to say, though one wonders how longstanding II clients might react if monthly rebates were removed from the firm’s other account types.
- Related guide: How to start a private pension
What is ii’s Pension Builder?
Pension Builder replaces the Funds Fan product which is being retired for new customers and going forward II will have just three membership plans and price points.
The £9.99 per month Investor account, Pension Builder at £12.99 per month and the Super Investor membership for £19.99 per month.
Super Investors will now be able to trade in US shares for just £3.99 per deal, and will also get access to the friends and family initiative (that Interactive Investors introduced in November) for free.
Speaking about the new products, revised charges and simplified membership options, Richard Wilson, Chief Executive Officer of Interactive Investor said that:
“Simplicity and great value have always been at the heart of our offering to investors, and we are pleased to be delivering even better value by enhancing our price plans.”
Adding that
“A monthly subscription plan in pounds and pence is familiar to so many people in areas ranging from streaming media to fitness and mobile phone services. We allow people to pay for their investment platform in the same transparent and modern way.”
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