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15th
Jun 2020
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FTSE 100 Tracker ISAs: Cheapest Way To Invest £20000

FTSE 100 Tracker ISAs: Cheapest Way To Invest £20000

We look at the 4 largest platform providers and compare what the annual charges would be on a £20,000 investment into an ISA in a leading FTSE 100 Tracker fund.

Investing In A FTSE 100 Tracker Fund ISA

If you are looking to invest the maximum current ISA allowance of £20,000 into a FTSE 100 tracker fund using an independent investment platform then it is worth comparing the total annual platform admin charge adding on the fund ongoing charges figure (OCF).

We have selected 4 of the UK's largest and most popular platforms. Taking a low cost tracker fund such as the Vanguard FTSE 100 UCITS ETF which has a low 0.09% ongoing charge based on a £20,000 investment you can see the difference in the total annual charge you will pay for each platform.

AJ Bell come out top, Fidelity second, HL third and Interactive Investor who operate a flat fee platform come out the most expensive.

Investment Platform Annual Platform Fee Vanguard FTSE 100 UCITS ETF Ongoing Fund Charge Annual Charge on £20,000


Fidelity
£45 up to £7,500 a year or 0.35% if you have a monthly regular saving plan of £50 or more.
£7,500 – £250k: 0.35%
£250k – £1m: 0.2%
£1m +: free



0.09%


£88

Hargreaves Lansdown
£0 – £250k: 0.45%
£250k – £1m: 0.25%
£1m – £2m: 0.10%
Over £2m: FREE


0.09%

£108
Interactive Investor
Investor Plan: £9.99 per month
Funds Fan Plan: £13.99 per month
Super Investor Plan: £19.99 per month

0.09% £137.88

AJ Bell
£0 – £250k: 0.25%
£250k – £1m: 0.1%
£1m – £2m: 0.05%
Over £2m: FREE

0.09%

£68

The tiered charging structures of each platform mean that depending on your longer term objectives what may be the cheapest now may not be the cheapest in the future.

E.g. Assuming the ISA allowance was £20,000 for the next 5 years, and you put in this contribution every year and your fund was worth £125,000 by this time then applying the same charging structure above Interactive Investor with their flat fee structure would be the cheapest option.

All platforms make ISA transfer relatively straightforward so in the future if you wish to move to another provider this is an option open to you.

Investment Fund Supermarket ISAs

Stocks & Shares ISA

from Fidelity

ISA Option
Allows ISA Transfers
Regular Savings
  • Protection Scheme: FSCS
  • Fund Choice: Choose from over 4,000 investment options, including one of the widest fund ranges in the UK, plus shares, investment trusts and exchange-traded funds. There’s also expert guidance to help with your investment decisions, which includes a selection of tools and insights from Fidelity’s experts. Capital at risk. Tax and ISA rules apply.
  • Invest From: £25 through regular savings or £1,000 lump sum

Why we like it: Fidelity has lots of investment options, plus an extensive range of guidance tools to help you decide what to invest in. Their award-winning ISA is easy to start and offers great value, their a typical service fee of just 0.35%. Other ongoing charges apply. On top of that, everything is backed by Fidelity’s 50 years of investment experience.

Important: The value of investments can go down as well as up so you may get back less than you invest. This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to an authorised financial adviser.

Tax treatment depends on individual circumstances and all tax rules may change in the future.

Stocks & Shares ISA

from Hargreaves Lansdown

ISA Option
Allows ISA Transfers
Regular Savings
  • Protection Scheme: FSCS
  • Fund Choice: Choose from over 2,500 funds, shares, investment trusts and more to build your portfolio. UK and overseas shares. Corporate and government bonds. Exchange Traded Funds (ETFs). Ready-made portfolios to suit your goals and attitude to risk from £1,000. Expert research to help make your decisions. Investment trusts and much more. Capital at risk.Tax & ISA rules apply
  • Invest From: £25 pm or from £100 lump sum

Why we like it: Choose your own funds or alternatively a ready made portfolio. Market-beating savings and discounts of up to 5.5%. No charge to buy and sell funds. Low, tiered annual charges for holding funds, with a maximum of just 0.45% per annum. Free fund updates and analysis from experienced research team. Invest with a financially secure, FTSE 100 company.

Important: The value of your investments can rise as well as fall. You may get back less than you invested. If you’re unsure, we recommend you ask for independent advice.

Stocks & Shares ISA

from AJ Bell

Allows ISA Transfers
  • Protection Scheme: FSCS
  • Fund Choice: 2000+ Funds
  • Invest From: £25 pm

Why we like it: It is simple to invest in a fund online. You will need to open an account first and then choose the fund you are interested in investing in. There are over 2,000 funds to choose from but to make it easier for you AJ Bell have created their favourite funds list which is their pick of the best funds. 

Important: The value of your investments can rise as well as fall. You may get back less than you invested. If you’re unsure, we recommend you ask for independent advice.

Stocks & Shares ISA

from Interactive Investor

ISA Option
Allows ISA Transfers
Regular Savings
  • Protection Scheme: FSCS
  • Fund Choice: Access 40,000+ UK, US and international shares on 17 global exchanges. Choose from over 3,000 funds or select a ready made portfolio. Investment trusts, ETFs, Bonds & Gilts. Option to invest in 6 low cost funds selected by experts to get you started. Capital at risk. Tax & ISA rules apply
  • Invest From: £25 a month or any lump sum

Why we like it: An award-winning ISA that gives you complete control. The second largest platform in the UK with the widest choice of investment options in the market including funds, investment trusts, ETF’s and more. Strong ethical investment proposition with more than 140 investment options. Open online in less than 10 minutes. Access to expert independent ideas and analysis. Low cost fees and trading.

Important: The value of your investments can rise as well as fall. You may get back less than you invested. If you’re unsure, we recommend you ask for independent advice.

Important Risk Information:

The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website aims to provide information to help you make your own informed decisions. It does not provide personal advice based on your circumstances. If you are unsure of how suitable an investment is for you, please seek personal advice.

High Income ISAs

High income ISA ideas:

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Cash ISAs

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Cash ISAs: 

Stocks & Shares ISAs

Types of Stocks and Shares ISA include: 

Stocks and Shares ISAs

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