Stocks & Shares Lifetime LISA: how the investment charges compare
If you’re thinking of opening a Stocks & Shares Lifetime ISA here’s where to go and how the investment charges compare.
The new Lifetime ISA, which allows you to save up to £4,000 a year and receive a 25% annual Government top-up, is finally here.
It’s designed to help under 40s save towards a home or for their pension and you can choose to invest in cash or invest in stocks and shares.
If you’re interested in opening a Stocks & Shares LISA here’s what you need to know about the providers offering them and how the charges compare.
Hargreaves Lansdown
The HL Lifetime ISA will offer the same investment options as Hargreaves Lansdown’s other ISAs. You’ll be able to invest in funds, shares, ETFs, corporate bonds and more.
The fees are also the same with a management charge of 0.45% on portfolios worth up to £250,000.
There is no dealing charge on fund transactions and a share trading charge of up to £11.95 per deal.
Nutmeg
The Lifetime ISA will be much the same as Nutmeg’s standard ISAs except it will have a lower initial investment limit of £100 rather than £500.
Charges will be 0.75% in the ‘fully managed’ portfolio and 0.45% in the ‘fixed allocation’ option on portfolios worth up to £100,000.
Fully managed means Nutmeg’s team will build and manage your portfolio, whereas ‘fixed allocation’ means you choose a portfolio that is automatically rebalanced by computers.
Once your portfolio has grown to be worth more than £100,000 the fees drop to 0.35% and 0.25% respectively.
There is also an average investment charge of 0.19%.
The Share Centre
This Lifetime ISA will be charged in the same way as the Share Centre’s Ready-Made ISA. You can choose from three portfolios and will be charged accordingly.
It comes with no dealing commission, account administration fees or initial charges. But, you will pay the “ongoing fund charges within the underlying fund”.
This is typically 2% for the Cautious fund, 2% for the Positive fund and 2.21% for the Adventurous fund.
Compare Stocks & Shares ISAs for 2017/18
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