Table of Contents
- Lloyds Bank adds new stocks and shares Isa and general investment account
- They are aimed at young people between 18 and 25 years old.
Lloyds Bank has launched a new range of investment accounts aimed at 18-25 year olds.
Called Invest Wise, the new addition to Lloyds’ investment service offers a general investment account and a stocks and shares Isa to young investors looking to battle the DIY platforms.
Younger DIY investors will be able to invest regular sums with a minimum of £20 a month. There are no fees for investing regularly.
Any trades outside of a regular investment plan will be subject to a fee of £11. If you have a Premier or Private bank account this costs £10.
Lloyds Bank has launched a new investment and shares Isa account for 18-25 year olds
The bank aims to make it easier and cheaper for this group to grow their wealth, as 42 per cent have had to turn to their parents for help with money, new figures from Lloyds suggest.
Research shows that moving up the real estate ladder is the biggest motivator for people this age to start investing, followed by starting a career, finishing college, getting married, and starting a family.
There are no administration fees for Invest Wise accounts if you are between 18 and 25 years old. Upon turning 26, investors will pay £40 a year in administration fees which will be deducted into a payment of £20 every six months.
The administrative position is taken in April and October of each year. If you open your account between payment dates, the semi-annual administration fee will be deducted from the next payment date.
Investors who have a Lloyds Premier or private banking account will pay £10 every six months instead of £20.
Manuel Pardavila-González, CEO of Lloyds Bank Investments, said: “We have designed Invest Wise as an easy and affordable way to help give 18-25 year olds the confidence to start working towards those goals.”
“They can invest for free using a regular investment plan, meaning more of their own money can go towards investing in their own home, planning their dream trip or building up savings for the next big stage in life.”
How is it different from other investment accounts?
The current age requirement to open a general investment account or stocks and shares Isa is 18, so technically investors of this age could open a general investment account or stocks and shares Isa with any investment platform.
They will have to pay administration fees with most other providers, even if they are between 18 and 25 years old.
AJ Bell, for example, has an annual administration fee of 0.25 per cent and a standard share, investment trust and ETF transaction charge of £9.95, while Hargreaves Lansdown has an administration fee of 0.45 per cent. cent and a trading charge of £11.95 for standard shares, investment trusts and ETFs. business relationship.
| Goal | % of young people between 18 and 25 years old with this investment objective |
|---|---|
| Buy a house/pay off a mortgage | 42% |
| Financial security | 41% |
| To save for a vacation | 37% |
| Provide a good financial future for my family/children. | 33% |
| Generation of personal wealth (to earn more money) | 32% |
| Saving for retirement | 22% |
| I don’t have any investment objectives. | 7% |
| Other | 1% |
| Lloyds Bank | |
On a £10,000 fund, Lloyds’ Invest Wise’s £40 annual administration fee on turning 26 is equivalent to 0.4 per cent. If you have a smaller pot to invest in, this could be expensive in smaller investment pots, but will progressively become good value in larger pots.
If you already have a Lloyds Premier or Premium bank account, the Invest Wise account fees are reduced slightly.
Lloyds hopes that the main appeal of these accounts will be that they will allow young investors to start investing seamlessly by giving them access to a range of other tools, as well as linking them to their existing account.
Those who open one of the Invest Wise accounts will be able to use the Lloyds ETF Quick List, which launched in September, and the Lloyds Select Fund List.
With ETF Quicklist, customers can choose from a list of 16 ETFs and invest in them through a share trading account or Isa, accessible from their banking app or online.
The list of ETFs is divided into four categories: Themes, Worldwide, Fixed Income and Current Trends, which includes ETFs ranging from UK property to healthcare.
If you already have a Lloyds Premier or Premium Bank account, you will also have the benefit of slightly reduced fees with an Invest Wise account.
Investing online is simple, affordable and you can do it from your computer, tablet or phone at a time and place that suits you.
When it comes to choosing a DIY investment platform, stocks and shares Isa or general investment account, the range of options can seem overwhelming.
Each provider has a slightly different offering, charging more or less to trade or hold shares and giving access to a different range of shares, funds and investment trusts.
When assessing which one is best for you, it is important to consider the service it offers, along with any administration and dealing charges, plus any other additional costs.
To help you compare the best investment accounts, we’ve looked at the facts and put together a complete guide to choosing the best and cheapest investment account for you.
We highlight the main players in the table below, but we recommend that you do your own research and consider the points in our full guide linked here.
>> This is Money’s complete guide to the best investment platforms and Isas
The platforms shown below are independently selected by This is Money’s dedicated journalists. If you open an account using links that have an asterisk, This is Money will earn an affiliate commission. We do not allow this to affect our editorial independence.
| Administrative position | Notes of charges | Fund trading | Standard Shares, Trusts and ETF Trading | Regular investment | Dividend reinvestment | ||
|---|---|---|---|---|---|---|---|
| AJ Bell* | 0.25% | Maximum £3.50 per month for shares, trusts and ETFs. | £1.50 | €9.95 | £1.50 | £1.50 per bid | More details |
| Bestinvest* | 0.40% (0.2% for ready-made wallets) | The account fee is reduced to 0.2% for investments already made | Free | £4.95 | Free for funds | Free for income funds | More details |
| Charles Stanley Live | 0.35% | No platform fee on shares if a trade is made in that month and an annual maximum of £240 | Free | £11.50 | n/a | n/a | More details |
| Fidelity* | 0.35% on funds | £7.50 per month up to £25,000 or 0.35% with regular savings plan. Maximum £45 per year for shares, trusts and ETFs | Free | £7.50 | Free Funds £1.50 Shares, ETF Trusts | £1.50 | More details |
| Hargreaves Lansdown* | 0.45% | Capped at £45 for shares, trusts and ETFs | Free | €11.95 | £1.50 | 1% (£1 minimum, £10 maximum) | More details |
| Interactive investor* | £4.99 per month under £50,000, £11.99 over, £10 extra for Sipp | £3.99 per month in free business credit (does not apply to £4.99 plan) | €3.99 | €3.99 | Free | €0.99 | More details |
| iWeb | £100 one-off fee (not applied until July 2024) | £5 | £5 | n/a | 2%, maximum £5 | More details | |
| Accounts that have some limits but attractive offers | |||||||
| Etoro* No Isa or Sipp | Free | The investment account offers stocks and ETFs. Be careful with high risk CFDs on trading account | Not available | Free | n/a | n/a | More details |
| Free trade*No investment funds | Free for Basic account, £4.99 per month for Standard Account with Isa £9.99 for Plus | Freetrade Plus with more investments and Sipp costs £9.99/month inc. isa rate | Without funds | Free | n/a | n/a | More details |
| Vanguard Only Vanguard products. | 0.15% | Vanguard funds only | Free | Free Vanguard ETFs Only | Free | n/a | More details |
| (Source: ThisisMoney.co.uk, February 2024. The administrative percentage charge can be applied monthly or quarterly. | |||||||