How does ISA fees work with Freetrade?

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#1

I am on ISA which is £36 a year.

  • May I ask, what happens on the 6th of April?

  • Would there be another account for the new year 2122?

  • If I have to maintain the 2021 account for five years, I should continue paying for as long as the account is open?

  • If there is another account for 2122, is there an additional £36 charge per account?

  • What if I open five account for five years? £36X5 = £180 per year just for keeping the account open?

  • Is it possible to transfer the S&S ISA to another cheaper provider?

Thanks,

#2

Why would you keep opening new accounts? I must be missing something because the limit of £20k per annum investment in the overall ISA allowance includes all your ISA products.

Surely the simple answer to your question is the most obvious, the Stocks & Shares ISA is a continual savings product & resets your allowance each new tax year. It will run as a singular account.

You will continue to pay £3pm (£36pa) & that’s all. No need for new accounts each year & therefore your fears are unfounded.

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#3
  • May I ask, what happens on the 6th of April?

You are allowed to top up another £20k.

  • Would there be another account for the new year 2122?

No.

  • If I have to maintain the 2021 account for five years, I should continue paying for as long as the account is open?

You keep paying as long as the ISA is open (£36 a year).

  • If there is another account for 2122, is there an additional £36 charge per account?

No.

  • What if I open five account for five years? £36X5 = £180 per year just for keeping the account open?

You wouldn’t.

  • Is it possible to transfer the S&S ISA to another cheaper provider?

You will struggle to find one cheaper!

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#4

That makes too much sense. Thank you. I am just a anxious puddle all the time.

Allowances reset and it’s a fixed £3 per month to maintain £100,000 portfolio in five years time. (If £20k per year is maintained)

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#5

Yep, hopefully more if your portfolio has grown!

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#6

Ah yes, all my dips are dipping further like there is no tomorrow.

Hopefully, it grows :relaxed:

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#7

There will be no cheaper stocks and shares provider than FT

#8

A 5yr plan to invest £100k in an ISA…brilliant! It is the the dream objective to max out that £20k annual limit consistently.

Just remember that would if it were all in on your stocks & shares ISA, you couldn’t add more to a cash ISA etc. (why you would want to is another matter altogether) :wink:

If you can achieve those savings, I would suggest you will see a pretty nice return over time. Let compound interest do its thing & with some wise picks, you’ll be laughing.

Good luck to you🤞

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#9

Trading 212 are cheaper.

#10

Stocks go up, stocks go down I wouldn’t worry over the long term too much.

When the pandemic hit my portfolio took a nose dive and I was in the red for quite some time, a year on kept buying dip and now 98% of my shares are in the green.

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#11

That’s what I aim for each year as well. Not sure i’ll make it this time still have 6k allowance left just had quite a few other expenses which took priority but I’m in the process of selling some other assets so fingers crossed they’ll go through then I can hammer that last 6k :crossed_fingers::fist_right:

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#12

I bet that most of FT users would love to be able to max out their ISA. I’ll be happy if i can get £10k into it per year.

Although now I’ve hit the magic age of 55 I’ve been able to cash out a few small ancient pension policies that were only increasing about 3-4% per year, and used them to give my FT pot a boost. Hoping of course I can beat those percentages myself.

Obviously DYOR etc etc .

I did that last month with our mutual interest assets. Another little boost to my FT pot. :grinning:

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#13

If I open a Freetrade stocks Isa today & only put in £1000 by April 5th have I got an allowance of £39000 for the 12months April 6th ‘21 - April 5th ‘22?

#14

No - you still only have 20k. The allowance you didn’t use is lost

#15

That sucks!
Although I thought that if you opened an ISA you could add £20k over any period.
I thought that you only lose that years allowance if you don’t open an ISA that year. :thinking:

#16

If you opened an isa now you could add up to 20k till end of tax year then the allowance resets to 20k again.

You only have a max of 20k allowance per tax year.

Be careful as this is spread across all isa accounts you hold, eg cash isa, lifetime isa, stocks and shares isa etc.

#17

You can add as much as you want - but if it’s more than 20k over a tax year expect to have a chat with HMRC :wink:

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