Vanguard hike in fees - ouch!

Vanguard hike in fees - ouch!

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Discussion

mikef

Original Poster:

5,380 posts

260 months

Thursday 12th December 2024
quotequote all
Vanguard have just announced an increase in fees from January

For my daughter, with £5K in her Vanguard ISA, the account fee will increase by 640%, from £7.50 to £48. We each have over £32K with them, so not affected

Email from Vanguard said:
Now You pay 0.15% On any invested balance, capped at £375 a year.

From 31 January 2025 You pay £4 a month, £48 a year On invested balances under £32,000. You pay 0.15% On invested balances of £32,000 and over, the same as it is today, capped at £375 a year.
The same email invites those impacted to close their Vanguard account or move their savings elsewhere


Edited by mikef on Thursday 12th December 16:05

PM3

951 posts

69 months

Thursday 12th December 2024
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PH solution ..... give her 27K for a GIA , sorted.

AllyM

401 posts

185 months

Thursday 12th December 2024
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They’ve got a new app to pay for smile

lizardbrain

2,601 posts

46 months

Thursday 12th December 2024
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What was the percentage before. It want capped so could be potentially better for some? Or not?

Petrus1983

9,940 posts

171 months

Thursday 12th December 2024
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PM3 said:
PH solution ..... give her 27K for a GIA , sorted.
It really is this.

The cost of servicing tiny accounts doesn't make sense - so they pass it on to you in the hope you'll either top it up or leave.

I'm currently trying to find a home for £600k and it's amazing how many banks etc that think I'm too broke to bother (they may have a point).

mikef

Original Poster:

5,380 posts

260 months

Thursday 12th December 2024
quotequote all
lizardbrain said:
What was the percentage before. It want capped so could be potentially better for some? Or not?
Currently 0.15% on any invested balance, capped at £375

boyse7en

7,258 posts

174 months

Thursday 12th December 2024
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Where is worth looking at to shift my S&S ISA to? It's worth about £15k and I just want a "fit and forget" plan. I don't do any trading, it's been in a Lifestyle fund since i opened it about 5 years ago.

iWeb says it has no platform charges or account fees, which sounds almost too good to be true.

mikef

Original Poster:

5,380 posts

260 months

Thursday 12th December 2024
quotequote all
PM3 said:
PH solution ..... give her 27K for a GIA , sorted.
I've gifted her rather more than that in the past month to buy a flat, so the ISA will have to wait

I don't want her to keep moving between ISA providers (it's possible, but a pain), so a bit wary about other lifestyle options that could soon go the same way

Mr Pointy

12,057 posts

168 months

Thursday 12th December 2024
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I don't pay any account fees as I was invested with Vanguard before they opened up their own platform. When they started it you could transfer & they gave me a lifetime fee waiver.

AllyM

401 posts

185 months

Thursday 12th December 2024
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boyse7en said:
Where is worth looking at to shift my S&S ISA to? It's worth about £15k and I just want a "fit and forget" plan. I don't do any trading, it's been in a Lifestyle fund since i opened it about 5 years ago.

iWeb says it has no platform charges or account fees, which sounds almost too good to be true.
iWeb is the solution for you. No catches.
£5 a trade if you ever do.

Greshamst

2,271 posts

129 months

Thursday 12th December 2024
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One way to avoid the increase in fees is to switch to their managed service, where they choose investments for you.

I believe that is only 0.2% rather than £4 per month.

2Btoo

3,609 posts

212 months

Thursday 12th December 2024
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Petrus1983 said:
I'm currently trying to find a home for £600k and it's amazing how many banks etc that think I'm too broke to bother (they may have a point).
£600k to invest and the banks view you as broke?

Yikes. That must rule out 99.5% of the population, surely? Definitely including me ...

keo

2,291 posts

179 months

Thursday 12th December 2024
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From the email I have received it’s an extra £4 a month if your account has less than £32k invested.

mikef

Original Poster:

5,380 posts

260 months

Thursday 12th December 2024
quotequote all
keo said:
From the email I have received it’s an extra £4 a month if your account has less than £32k invested.
Yes, that’s what I quoted

Looking at their last annual report, the median investment of their retail investors worldwide is short of £32K

MrJuice

3,735 posts

165 months

Thursday 12th December 2024
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£48 a year to manage £32000 for you is incredibly cheap. crazy cheap

i doubt there are many options out there that will be less than £4 per month up to 32k

boyse7en

7,258 posts

174 months

Thursday 12th December 2024
quotequote all
MrJuice said:
£48 a year to manage £32000 for you is incredibly cheap. crazy cheap

i doubt there are many options out there that will be less than £4 per month up to 32k
But £4 a month is a big chunk if you are only paying in £10 or £20 a month. It's not a great way to encourage people to save for the future.

MrJuice

3,735 posts

165 months

Thursday 12th December 2024
quotequote all
agreed

not great at all for people just starting out.

are there any other options though for self managed ISAs with very low fees like vanguard as they were before their scheduled price rise?

boyse7en

7,258 posts

174 months

Thursday 12th December 2024
quotequote all
MrJuice said:
agreed

not great at all for people just starting out.

are there any other options though for self managed ISAs with very low fees like vanguard as they were before their scheduled price rise?
I'm looking at iWeb. Apparently there are no fees unless you actually do trades. If you are an invest-and-forget kind of saver then it looks good, but I'm going to try and read up a bit more about it before i switch

Craikeybaby

10,815 posts

234 months

Thursday 12th December 2024
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I came here after getting the same email from Vanguard.

I've recently moved my SIPP away from them, to ii, as it was over the threshold where ii was cheaper, but it looks like to add an ISA to my ii account would be £10 a month, so still cheaper to stay with Vanguard for my use case of < £10k but regular monthly top ups.

Cats_pyjamas

1,635 posts

157 months

Thursday 12th December 2024
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This is a bit annoying. Thankfully I have 'just' over the 32k threshold. But the wife only has 5k in there paying in £500/ month.

Not sure it's worth changing it for us, and if I have some additional funds I may just chuck them her way to bump up her account.