NISA iWeb Charge Increase – Act Now!

Image result for iweb share dealing logo
I wanted to drop a quick post out to everyone in the UK that like me, are deciding on opening a NISA with iWeb for the new Financial Year.

I just noticed an announcement on their website that their opening account charge is going to increase from £25 to £200 in the next week!

From 16th March 2015, they’re increasing the amount for NEW CUSTOMERS ONLY. This will not impact existing Share Dealing Account or ISA Customers. I contacted them today just to clarify the situation as I already have a share dealing account (taxable) with them. They confirmed that as I have an account with them already, I won’t have to pay the £25 or the £200 so the date won’t matter to me.

If you don’t have an account with them currently, it might be in your interest to open one between now and the 15th March 2015 to save £175!

Own a SIPP with iWeb?

If you hold a SIPP with iWeb currently and you plan on opening a Share Dealing Account or ISA after the 16th March, you WILL be charged £200, not £25. 

That’s all the information I have, please refer to their website for more details if you’re interested. Happy saving!


I AM NOT AFFILIATED WITH IWEB IN ANY WAY, AND I WILL NOT RECEIVE ANY COMMISSION FOR YOU JOINING THEM. MY INTENTION IS SOLELY TO SAVE YOU MONEY IF YOU’RE PLANNING ON JOINING THEM BECAUSE I’M A BLOODY NICE GUY, THAT’S ALL!

0 Comments

  • Dividend Drive

    Reply Reply 10th March 2015

    Ouch, that is a pretty hefty increase. I hope this is not indicative of a broader change in pricing.

    As a side note, I have been with iWeb for several years now and have not, as far as I am aware had the account opening fee deducted yet. Odd, I know, but true!

    Thanks for the notification!

  • The Big Monkey

    Reply Reply 10th March 2015

    Thanks for the heads up Huw. I need to get a move on.

    TBM

  • Anonymous

    Reply Reply 10th March 2015

    Thanks Huw.

    I have just setup a share dealing account and will open an ISA in the new tax year.

    Richard

  • Huw Davies

    Reply Reply 11th March 2015

    It is isn't it! I did sit back and think the same thing.

    I'm not entirely surprised as the rate was low at £25 for multiple accounts. I hope the £5 purchasing fee stays in place.

    No problem at all!

    Cheers
    Huw

  • Huw Davies

    Reply Reply 11th March 2015

    No problem at all TBM. At least you now have a good reason to sign up early.

    Cheers
    Huw

  • Huw Davies

    Reply Reply 11th March 2015

    Hi Richard,

    No problem. I was planning on signing up in April and the notice did catch me by surprise. I felt compelled to let others know as there is quite a big difference, and people have mentioned joining iWeb on the Blog in April.

    Cheers
    Huw

  • diy investor (UK)

    Reply Reply 11th March 2015

    I can't imagine there will be many people queueing up to open accounts for £200 after 16th – doesn't seem to make any sense to me – don't they need to increase their customer base?

    I would say this is very short-sighted and I suspect it won't be too long before they will be forced to review the decision.

    They were on my short list as potential brokers for my new ISA in April but not now.

    Cheers Huw!

  • Huw Davies

    Reply Reply 12th March 2015

    Hi DIY Investor (UK),

    It's quite a lofty increase isn't it. I appreciate that they're very low at the moment, but I thought they might go to £50 or even £100. I think they're hoping to increase their customer base prior to the new financial year by tempting early sign ups.

    My previous NISA broker charged £11.95 per deal (+ stamp duty), whilst iWeb is £5, so I'm saving £6.95 on every deal I make. There's also a saving to be made by not having an annual fee. I'm glad that it won't impact me as I have a taxable account already, but I think I would still consider it, due to the mid term savings I'd make on the share deals.

    I respect your stance none the less. I wish you the best of luck with an alternative.

    Cheers
    Huw

  • Theres Value

    Reply Reply 13th March 2015

    It's shocking that companies would even charge int he first place for opening an account, especially online only ones where the admin costs are even lower than bank/large broker offshoots.

    I'm going to be totally cynical for a minute and make a suggestion as to why they're doing this – perhaps because of the new pension rules coming into force soon, they expect a lot of older people will be taking advantage of their new freedoms to access their money and will open new accounts. There has been a lot of talk about these people investing in property, but I daresay many of them already own their own home and wouldn't want to buy another one, in part due to the higher prices, but also it's sometimes difficult to get mortgage as an older person sometimes too.

    This might not actually be the reason why iweb are doing this, but just a thought as to a possible explanation. Either way, I think they're totally crazy. As far as I'm concerned, the trend should be to reduce barriers to entry and encourage more people to invest inthe markets. Look at what is going on in the US with RobinHood and Loyal3 – we should be getting those sorts of offers over here, but sadly we aren't. I'd love to see something like that come and shake up our industry though.

    CHEERS

  • Huw Davies

    Reply Reply 13th March 2015

    Hi M,

    Thank you for sharing your opinion on this. I know very little about the reasons why they're increasing the opening rate to the levels they are. They're the only company I'm aware of that do it. £200 is very high too. I personally prefer to have the option of paying a fee up front now and not having to pay a monthly or annual management fee for 10-30 years, but must admit £200 is a little steep.

    I'm happy to be a customer of iWeb for as long as their service level continues and they offer the low share dealing rate of £5. If that changes I'll be sure to look for another provider. I hope the future broker options become more competitive to drive prices down, and I'd also like to see more people open to investing. Raising the opening amount to £200, certainly isn't going to help with that.

    Thanks for sharing your view! All the best.

    Huw

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