We’re making some changes to our Service Fee, to make things simpler, so it’s easier for you to understand how much you’ll be paying for your investments.
From 1st March 2016, you’ll pay a Service Fee of 0.24% of the value of your investments. The minimum fee will be £2.40 per year, with no maximum limit. The fee will be calculated monthly, starting from 1st March 2016, and collected in October each year.
There are no changes to the Ongoing Charge of 0.45%, which is automatically deducted from the value of your investment, and paid to the fund manager, Scottish Widows.
What does this mean for me?
The table below shows examples of how much you’ll pay over the course of a year, depending on how much your fund is worth. This table includes both the new Service Fee and the fund manager’s Ongoing Charge for the fund.
Overall fund value on the last day of month
New monthly Service Fee
Monthly Ongoing Charge
Total cost per month
Total cost per year
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The Ongoing Charge for a fund is paid directly to the fund manager. It covers the costs of maintaining and managing the fund. It’s automatically taken from the value of your fund.
The Service Fee covers the cost of providing the service. This includes things like the administration of your investment and providing online statements.
We’ll collect your Service Fee once a year, using the debit card details you provided when you set up your investment. The Service Fee will be accrued monthly from 1st March 2016, and paid annually in October.
If you’re not happy and want to transfer to another provider, you can do this for free. If you have an ISA with us, you’ll need to do this before 18th March 2016, by getting a transfer form from your new ISA manager. As our funds are only available from Halifax Online Investments, your investment will be sold and the transfer will be made in cash.
If you have an Investment Account, you can simply sell the investment and withdraw the funds in cash.
There will be no Service Fees to pay to cover the period up to March 2016. The new Service Fee will start to accrue monthly from 1st of March and will be collected in October each year.
You’ll only pay one Service Fee, no matter how many of our funds you’ve invested in. The amount will be calculated on the total invested in all funds.
If you have invested in more than one fund, you’ll pay Ongoing Charges to the fund manager for each of the funds you’re invested in.
If you’ve got an ISA and an Investment Account with us, you’ll pay two Service Fees, one for each account.
We will be updating the Our Fund Range and Investments document. This will be updated when the new charges take effect on 1st February. While this is when the new charges come in, you won’t start accruing them until 1st March.