ISA charges 2016
Set up and administration
|Setting up your ISA||No charge|
|Paying a single or regular subscription||No charge|
|Transfer in from another ISA manager||No charge|
|Account charge||No charge|
|Shares (including investment trusts, ETFs, gilts and bonds)||0.25% (maximum £7.50 per quarter)|
|Funds (including unit trusts, OEICs and structured products)||
First £0 - 250,000
Next £250,000 - £1m
Next £1m - £2m
Value over £2m
Buying and selling investments (per deal)
|Funds (including unit trusts and OEICs) online||£1.50|
|Shares (including investment trusts, ETFs, gilts and bonds) online||£9.95|
|Shares, where there were 10 or more shares deals in the previous month||£4.95|
|Regular investments online||£1.50|
|Where we are required to complete a paper application (eg structured products)||£100|
|Foreign exchange charge on international dealing and foreign currency funds||1.00%|
Transfer out and other charges
|Cash transfer to another ISA manager||No charge|
|Transfer out the underlying assets||£25 per holding|
|Cash withdrawal by BACS||No charge|
|Payment by CHAPS||£25 plus VAT|
|Disinvestment, if we need to sell some of your holdings to cover charges||£29.95 per holding|
|Foreign exchange charge payable when we have to convert any dividends or corporate action payments into sterling||0.50%|
Interest rates paid on the cash held in your ISA
|Cash balance||Gross interest rate for this tier only||Interest rate (AER) for this tier only|
|£50,000 and below||0.00%||0.00%|
All charges will be deducted from your ISA. These charges and rates are effective from 1 October 2016.
- The funds and shares custody charges will be based on the mid-price value of investments in your account on the last working day of each month in the calendar quarter. This will include investments added to your account, but not yet settled at the month end. The charges will normally be collected within 20 business days of the quarter end.
- For new accounts opened during the month the funds and shares custody charges will be applied on a pro-rata basis from the date of account opening to the end of the month. For accounts closed in a month, the custody charges will be applied on a pro rata basis from the beginning of the month to the date we receive your closing instruction.
Buying and selling investments
- The shares online dealing charge is determined by the number of shares deals you placed in the previous calendar month across the accounts in your individual name (excluding any regular investment deals). For example, the charge you pay in February will depend on the number of shares deals you made in January. If you make 10 or more online shares deals a month, then the £4.95 charge will apply the following month.
- The investments that you choose may have their own initial and annual charges, in addition to our dealing and custody charges.
- If you are investing in unit trusts and OEICs, we offer discounts on the initial charge made by the fund managers. Any specially negotiated discounts of initial charges on unit trusts and OEICs are passed to you. See our funds universe for details. Information on the annual charge for the unit trust or OEIC may be obtained from our website, or direct from the fund manager.
- Dealing charges apply separately to purchases and sales. The dealing charge for each transaction will be shown on the contract note.
- Bed & ISA transactions can be placed by telephone, these allow subscription into your ISA by selling shares in your dealing account and immediately using the sale proceeds to buy back shares in your ISA. A single dealing charge of £9.95 is payable on the sale order only.
- Stamp duty of 0.50% applies on all purchases (not sales) of UK quoted shares (1.00% for shares quoted on the Irish Stock Exchange). Stamp duty is payable on certain securities issued by UK incorporated companies where these securities are traded as CREST Depositary Interests. There is no stamp duty on purchases (or sales) of unit trusts, open ended investment companies (OEICs), exchange traded funds (ETFs), warrants and government stock (gilts).
- The PTM (Panel on Takeovers and Mergers) levy of £1.00 is payable on equity trades with a consideration over £10,000 in securities of companies which are incorporated in the UK, Channel Islands or the Isle of Man.
- You will be told in advance if we need to complete a paper application.
- Additional government and local stock exchange charges are payable for certain international markets. These are detailed on the charges and rates page on our website and will be added to your contract note.
- A foreign exchange charge of 1.00% will be included in the rate used to convert the value of your deal to sterling. We may share a proportion of this with our service provider.
Interest rates paid on the cash held in your ISA
- The interest rate for each tier only applies to money held in that tier and not to the account balance as a whole. Total interest paid will be a blended rate depending on the money held in each tier. Therefore the interest rates shown should not be used for comparative purposes with other accounts, unless they operate on a similar basis.
- The Annual Equivalent Rate (AER) represents the annual rate effectively received by your account if the interest at gross rate applied during a year remained in the account and itself earned interest.
- There are no routine bank transaction charges and interest is paid to your account without any deduction of tax.
- Interest rates are subject to variation and interest is paid to your account quarterly, in arrears. Interest will not be credited or paid if the amount of such interest, at the end of each quarter, is less than £2.50.
- AJ Bell receives payments from banks based on the aggregate cash balances held across all accounts. The amount we receive will vary depending on the total cash balances held and market interest rates. Over the foreseeable future, we expect to receive between 0.05% and 0.25% below the prevailing base rate for cash held within an ISA, although it may be higher or lower when interest rates are volatile. These payments are used to pay interest at the rates shown on our website, and we retain the amount received above these rates to keep our administration, custody and dealing charges low.
- VAT is only applicable where indicated.
- You must always ensure that there is sufficient cash held to cover our charges when they are due for payment.