JISA Charges

[Invest212]

Hello,

I am a UK resident and have £5,000 to invest initially in a JISA for my daughter, I will be paying £100 per month DD into the account and want this, along with the initial investment to go into a fund (not particularly hung up on a particular one at this stage). Can someone provide a few examples of the costs involved for a particular provider, its a little confusing with platform, management, investment , dealing charges to understand how I decide the least expensive platform. With a few examples I should be able to carry on and check for myself.

Thanks

[DrFfybes]

Hargreaves Lansdown scrapped all their fees for JISAs a few months ago.

https://www.hl.co.uk/investment-service ... nd-charges

We have several set up for our great nieces/nephews.

Paul

[MuddyBoots]

I use Fidelity for my child's JISA, and although they don't charge a service fee on JISAs and do pay interest on cash balances (currently 3.6%), each individual fund has its own charges. For example the Fidelity Index World Fund p acc has an ongoing charge of 0.12% and zero transaction cost. But other funds' fees vary a lot and if low fees is your goal then imo sticking with index trackers provided by the same fund manager as the platform is usually cheapest.

[Invest212]

Thanks both. The reason I asked was because of HL. I noticed on funds there's a management (HL) charge as well as an ongoing charge so whilst they advertise "no fees" on JISAs there's still a cost that may be less favourable than other providers.

[Invest212]

I can see HL will charge me 0.12 (on going charge) on Fidelity Index World Fund p acc, in addition to 0.45% HL charge costing a total of 0.57% annually. Are there no additional charges with Fidelity on JISAs?

[MuddyBoots]

I can see HL will charge me 0.12 (on going charge) on Fidelity Index World Fund p acc, in addition to 0.45% HL charge costing a total of 0.57% annually. Are there no additional charges with Fidelity on JISAs?

I don't think so, but others here might have a view. All I can see is a 0.02% "negotiated fund manager discount" so presumably the net fees are 0.1%. I'll log in later today and check what they're actually charging us to see if it tallies.

https://www.fidelity.co.uk/factsheet-da ... statistics

[DrFfybes]

Thanks both. The reason I asked was because of HL. I noticed on funds there's a management (HL) charge as well as an ongoing charge so whilst they advertise "no fees" on JISAs there's still a cost that may be less favourable than other providers.

As Muddyboots says - not necessarily the case, although in this case there is a very small difference.

You are confusing Fund Management fees (aka OCF/TER) with Platform Fees (aka Custody and Dealing Fees).

All Funds charge a management fee. This is generally fixed by the Fund, HOWEVER if the Fund Provider also has their own Platform (like Fidelity, Vanguard)or has an arrangement with the Platform then sometimes they discount the management Fee. In this case 0.02%

For HL their charges are..https://www.hl.co.uk/funds/fund-discoun ... s-p-income so Fidelity do not offer HL the same deal (or if they do, HL don't pass it on to their customers, but hey, they need to make their money somehow).

HL do charge 0.45% Platform Custody in some accounts for holding Funds, however from my link above you can see they do not charge a Custody Fee of any sort on any assets in JISAs.


The Fund charge (ie what the Fund Manager charges to operate the Fund) is 0.12% with HL. The Fund charges the same with Fidelity, however they give a 0.02% discount to their own platform which the Platform passes on to the customer.

https://moneyforums.citywire.com/yaf_po ... sdown.aspx has a partial list of Funds that HL offer customers a discount on the Fund Charge, including where some Funds are cheaper than Fidelity. These will probably all be Actively Manaed Funds rather than Trackers.

Also HL have a "Loyalty Bonus". This used to be a rebate of the trailing comission paid to advisers which has now been banned, but I notice on my HL ISA I'm getting a Loyalty Bonus on the 2 Funds I hold there. I don't know if JISAs get this rebate.

Paul