AJ Bell Dodl’s LISA (Lifetime ISA) has raised the amount of interest it pays on cash to offer the highest rates on cash across the sector.
Following an update to the app’s ISA and Lifetime ISA, investors can now earn up to 5.09% in interest on uninvested cash in both services. Dodl previously did not offer an interest.
This is the highest rate available on a LISA and one of the highest rates available on an ISA. The interest rate on AJ Bell Dodl’s LISA and ISA is tied to the bank of England base rate.
Dodl clients are also able to access bespoke educational content about investing in order to build their confidence.
AJ Bell Dodl offers investors a streamlined and simplified range of investment options compared to the full AJ Bell platform.
The app caters to newer investors by offering commission-free investing in AJ Bell funds, themed investments and a small selection of main market shares.
With an annual management fee of 0.15%, Dodl has some of the cheapest investment account fees of any of the investing apps. It does not integrate with the more advanced AJ Bell platform, however.
By comparison, Nutmeg charges 0.45% to 0.75%, while Wealthify charges 0.6%.
The update comes after AJ Bell launched a simplified pension plan solution by rolling out four new ready-made pension portfolios on its main platform earlier this year in another challenge to those digital wealth managers.
The firm’s move to provide three risk-rated growth funds with annual management charges of just 0.45% put it in a competitive position against the likes of J.P. Morgan-owned Nutmeg, Moneyfarm, and Aviva-owned Wealthify.
The new solution also links to a pension-finding tool launched by AJ Bell last year for no extra cost. This allows customers to track down their pensions and automatically combine them into a simple, low-cost pension account.
Given the management fee for AJ Bell’s SIPP is around 0.25%, the Ready-made pension fees compare favourably with those of similar solutions provided by Nutmeg, Moneyfarm and Wealthify.
Robin has more than six years of experience as a financial journalist, most of which were spent at Citywire, and covers the latest developments in the investing, trading and currency transfer space. Outside of work, he enjoys reading literature and philosophy and playing the piano.
You can contact Robin at robin@goodmoneyguide.com
