Bestinvest has revealed its new tiering pricing structure for its online investment service, with self-invested personal pension investors reaping the benefits with fees starting at 0.3 per cent.
From 1 March, Bestinvest will be implementing a new pricing model for Online Investment Service (OIS).
According to Bestinvest the pricing structure is particularly favourable towards Sipp clients and those with higher Isa and general investment account investments.
Sipp fees start at 0.3 per cent, reducing to 0.2 per cent for pots more than £250,000 and nil for those investors that have above £1m.
Bestinvest will pay up to £500 towards the cost of any exit fees for investors seeking to transfer into its Sipp.
The new service fees for fund-based stocks and shares Isa and GIAs will start at 0.4 per cent for less than £250,000, halving to 0.2 per cent for over £250,000 and investors will pay nothing for funds over £1m.
Bestinvest is one of many platforms who has unveiled a new pricing structure ahead of the looming implementation of the cash rebate ban.
Under Aviva’s new model, investors with £400,000 or more will pay 0.15 per cent for their Isa and investment portfolios, while those with less will pay 0.25 per cent.
For pension portfolios, investors will pay 0.1 per cent at Aviva’s ‘core’ level - which comes with a 0.05 per cent discount - and 0.15 per cent at its ‘choice’ and ‘flex’ levels. The latter also carries an annual charge of £250, and all three levels carry an annual drawdown charge of £100.
Hargreaves Lansdown, who received criticism for its new pricing structure not being transparent enough, said it would install investment charges of 0.45 per cent up to £250,000, 0.25 per cent up to £1m, 0.1 per cent between £1m and £2m, and no charge for anything more than £2m.
Fidelity also recently revealed the platform will charge a single, tiered fee of 0.35 per cent for investments up to £250,000, 0.2 per cent on anything up to £1m and no additional charge on any funds above £1m.
Peter Hall, chief executive of Bestinvest, said: “Our goal is to offer investors an exceptional value-for-money service that is underpinned by rigorous and unbiased research.
“We know from our years of experience that saving for retirement is one of the most critical personal finance challenges clients face.
“For the award-winning Best Sipp we have introduced an even lower service fee to enable clients to get the best possible outcome from their retirement savings.
“The Online Investment Service is much more than a ‘fund-supermarket’, it offers a wide range of investments and market-leading guidance and analysis tools.
“With banks withdrawing from the advice market, we believe this service is well placed to help bridge the gap for those investors who are prepared to make their own decisions but need a helping hand.”
