According to Scottish financial services advisers The Lang Cat, swerving the most expensive fees could be worth more than £110,000 over a 20-year period.
One small change could make ISA savers £110,000 richer. According to Scottish financial services advisers The Lang Cat, swerving the most expensive fees could be worth more than £110,000 over a 20-year period.
The research found that with some providers, if you invested £1m you would pay £3,000 a year in fees. Over the course of two decades, assuming returns were 6%, that £3,000 wasted on fees could have been turned into £110,000.
For those investing £50,000 or more in funds in a stocks and shares Isa, Hargreaves Lansdown ranks as the priciest provider across the board, research by the Lang Cat, an analyst, found.
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Isa millionaires invested in funds would pay £3,000 a year in fees to Britain’s largest platform, compared to the lowest-priced provider, iWeb, which charges just £60.
Making the switch would save a £1m investor £2,940 in fees a year. A spokesman for Hargreaves Lansdown has commented on the findings.
They said: “Our clients tell us they highly value the full-service offering: the security of a trusted brand, the breadth of proposition and wide range of investment choices as well as access to our quality and personal client service.”
Harriet Guevara, chief savings officer at Nottingham Building Society, said: “Cash ISAs are an essential tool for millions of savers across the UK, allowing them to save for key life moments like buying a house or planning for retirement.”
If you paid annual fees of £3,000 for 20 years instead of investing that money, assuming an average annual return of 6 per cent, you would lose out on a total of £110,357 over the two decades.
Ms Guevara said: “With economic uncertainty high and the appetite for these products strong, limiting people’s ability to save towards their goals and to build a financial safety net would be the wrong step at the wrong time.”