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Transact cuts charges in fee overhaul

Ian Taylor Transact 440

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.”



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There are 4 comments at the moment, we would love to hear your opinion too.

  1. Now let me think – should I continue to pay £48 pa or should I move my portfolio ? perhaps I should consult a “fee Based” Independent Financial Adviser – rather than one who simply takes his “commission” from my funds and calls it a fee ?

  2. Anthony Rafferty 22nd April 2013 at 10:17 am

    So if I had £60k in cash I’d earn 0.29%, but pay income tax on that, but I’d also pay 0.45% as a cash holding fee? Really? You’d charge me for holding my money?

  3. Take note all those HL fans, clearly a different approach to doing business – you can make some profits and keep them whilst giving some back to customers through reducing charges. A clean platform offering the best unit prices for clients.

  4. @Anonymous at 10.17am

    You have misread the article. 0.29% is the annual platform charge for cash within a portfolio of £600K. The interest rate on instant access cash with Transact at the moment is about 0.94% p.a gross.

    A portfolio of £60K has an annual platform charge of 0.45% for cash holdings.

    Transact are one of very few (can’t think of any others) platforms that pass on the full interest earned from cash and do not skim off the top.

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