The UK’s number two direct consumer investment platform is looking to offer better value to consumers and a clearer pricing plan.
Interactive Investor – one of the largest direct consumer investment platforms in the UK – is moving to simplify its pricing structure. The changes, which will come into effect from October 1st will, they say, make investing simpler and offer better value.
The first change comes in their self-invested personal pension where the £10 a month income drawdown fee has been scrapped, among other changes. There will also be no charge for UFPLS with which investors can withdraw some of their uncrystallised funds as a lump sum. Their pension annuity fees will also go.
In the future, SIPP investors will just pay a £10 monthly fee for their SIPP along with a charge for their service plan, starting at £9.99. This single charge will provide access to a stocks and shares ISA, and junior ISAs for all their children, as well as a trading account. The fee stays flat no matter how much the account grows giving people a clear, single fee to look at.
This is part of a series of changes to their fee structure, over the past 12 months, all off which were aimed to make their pricing models better value and easier to understand in an increasingly competitive market.
Last year we switched to a much-welcomed Netflix-style monthly subscription charge,” said Richard Wilson, CEO of Interactive Investor. “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.”
This new set of changes takes this on a step further.
“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,” he added. “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.”
You can see the new interactive investor changes in the table below.
|Product||Current Fee||New Fee|
|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|
|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*|
Meanwhile, they stress that there has been no change to their flat fee for their investor plans: The Investor, Fund Fan and Super Investor plans all have a fixed monthly flat fee in pounds and pence with different trade charges for any investment style. You can easily move between plans at any time.