FeesOct 5 2020

Natwest and Coutts cut investment fee to 0.15%

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Natwest and Coutts cut investment fee to 0.15%
Credit: Bloomberg

Natwest and Coutts have reduced their ‘Invest’ fees to 0.15 per cent in a bid to drive down costs for consumers.

The Natwest group announced today (October 5) it has reduced its investment platform pricing — the amount clients pay to hold an investment with the banks — from 0.35 per cent to 0.15 per cent for investments up to £1m.

It comes as the group simplifies its investment offering. Whereas previously customers were offered two investment platform tariffs with different tiers and fees, split between an online and face to face service, they are now offered a consistent fee for both services.

The group’s ‘Invest’ service is offered across the UK and from various brands: Coutts Invest, Royal Bank Invest, Natwest Invest and Ulster Bank Invest.

Coutts manages the five risk-managed ready-made funds, known as the Personal Portfolio Funds range, and today cut the management fee to 0.10 per cent.

The group said the funds were a “huge driver for growth”.

Camilla Stowell, head of client coverage at Coutts, said: “As we have grown our business by advising and investing for more clients across the organisation, we have achieved ongoing process improvements and efficiencies which ultimately mean we can share these benefits of scale back with our clients.

“The new tariff will be one of the lowest for an investment platform in the UK marketplace. By further improving our pricing, we believe that ultimately there is even more reason for clients to consolidate investment assets with us.”

The move comes a month after Coutts reduced its advice fees.

In September, the private bank said technology had played a “fundamental” part in lowering its charges as it switched to one-off fixed fees — £2,000 for investment advice and £5,000 for financial planning.

Dylan Williams, newly appointed head of affluent at NatWest, said the bank needed to make investing “more accessible” for everyone.

He said: “Cost must not be a barrier. We have a responsibility to not only raise awareness around the benefits of investing and financial planning, but ensure our products and services deliver results and help tackle the UK’s savings gap.

“This is an opportunity for those individuals and families who can, to invest and secure their financial wellbeing for the long-term. By reducing our fees we can help our customers grow their money faster and realise their goals more quickly.”


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