Transact is reducing its charges by almost 15 per cent for an average portfolio of £180,000 in a wide-ranging shake up of its fee structure.
From 1 June the Transact annual charge for investments will be simplified so the same rate applies on funds between £60,000 and £600,000.
From £60,000 to £180,000 the rate has been cut from 0.425 per cent to 0.325 per cent.
From £180,000 to £300,000 it has dropped from 0.375 per cent to 0.325 per cent.
A 0.5 per cent charge on funds under £60,000 will remain if there is less than £300,000 held in total.
For funds above £300,000 there is no change and 0.325 per cent will apply up to £600,000, when it will drop to 0.2 per cent for the next £600,000.
The annual rate on the first £600,000 held in cash will be 0.29 per cent a year, with 0.18 per cent applying for the next £600,000 and 0.0675 per cent for any remaining balance.
There will also be a 0.45 per cent charge for the first £60,000 held in cash. Transact will continue to allow clients and their family to link portfolios.
Transact chief executive Ian Taylor says: “To give you an idea of what these changes will mean, an investor with an overall portfolio value of £180,000 will make an annual saving of almost 15 per cent.
“Tens of thousands of investors will pay less as a consequence of these changes to our pricing structure.”