Barclays Smart Investor, the bank’s digital investing account, has simplified its fee schedule. Barclays Smart Investor is the bank’s online DIY investing and share trading platform that’s available to UK residents with a Barclays bank account.
Barclays Smart Investor Fee Reductions
Barclays Smart Investor has simplified its fee schedule and has removed its minimum monthly fee in favour of a single customer fee.
Which the bank believes will make its charges more transparent and allow its customers to quickly understand how much they are paying and what it’s for.
Going forward customers will now pay 0.25% per annum on their investment balance regardless of product.
The new annual fee is applicable on balances of up to £200,000, those clients that hold more than this, with Smart Investor will be charged 0.05%.
Potential Improved Returns
The changes should mean that investors are better off, for example,
A new customer who opens an ISA account through Smart Investor with a £10,000 investment will pay just £25.00 per annum.
That compares to £48.00 under Barclay’s old charging scheme.
Barclays will now not charge for any of the following services:
- Account opening
- Depositing funds
- Regular investments
- Reinvestment of dividends
- The transfer of investments
Smart Investor has also waived its £3.00 fund dealing charge, but it has retained a share dealing commission, although this is now a flat £6.00 per trade.
More Changes To Come
Speaking about the new fee structure, Chris Worle, Head of Smart Investor said:
“It’s more important than ever we enable more people in the UK to invest for their future – with inflation still high, and interest rates expected to peak in 2024, investing continues to offer the potential for the best returns over the long term”
He added that
“These changes to Barclays Smart Investor are the start of a raft of improvements we will deliver over the next 18 months to make investing easier, as well as more accessible and rewarding.”
Simpler cheaper and more transparent fee structures are to be welcomed as they benefit the end investor by making it clear where their money is going.
And also by allowing them to retain more of their money for investing, which can make a big difference to returns, over the long term.
However, we still need to check the small print.
Because even though Barclays says that share dealing charges are a flat £6.00 per trade,
Smart Investor will levy additional fees on international share trades, alongside a 1.00% currency conversion fee.