Is 1.5% management fee high for a S&S ISA

[nevertoooldforindie]

I have been paying into an ISA for a couple of years that I did very little research before opening as was only putting in small amounts.
Inspired with the great advice on here I am thinking of moving money out of premium bonds but I’m not sure this is the best place to put it. I would have a penalty if I transfer out in the next two years. (£50). It’s currently only invested in a UK tracker but I can add on other funds Thanks

[Underpaidsnackbitch]

1.5% is expensive just for a tracker fund

[Chewbecca]

Yes, it is high, and exit fees are quite rare too.
If you haven't put any in your existing one this tax year, why not open a new one for your future investments and your PBs?

[nevertoooldforindie]

Thanks. The direct debit for may has gone in already. Shall I just continue with a minimum payment this year and save elsewhere or bite the bullet and just transfer out ? Or would it be better value if I put a percentage into a different fund within the ISA

[Starface]

So I would just open a General Investment Account and contribute to that for this year. Then open a DIFFERENT ISA next year, and add to that from your GIA and from savings next year. I'd guess you are unlikely to be looking at CGT or dividend tax in the space of a year. Your fees shouldn't be that high if you are careful.

Then transfer the contents of your current (extortionate) ISA from when the exit fees finish.

[nevertoooldforindie]

Thanks starface. It doesn’t have a massive amount in it but I do have a decent amount in premium bonds that I would like to do something with. When I opened it. I really didn’t know what I was doing - probably attracted to an opening offer or such. I’m planning for retirement in next 8-10 years so this board has been so informative. It’s really opened my eyes

[nannynick]

I use one which has a 0.15% provider fee and a 0.22% fund fee, so 0.37%. 1.5% in comparison is huge.
However, calculate what that is actually costing you on the money you have invested, as if you have a small amount of money invested, then the amount is still small.
An exit fee is quite unusual these days. Do some calculations to see if it is worth paying that to transfer to a lower cost provider. If you are saving 1% by moving, and you have £5k then you year 1 you have absorbed that cost, then from then on you are paying less.

[nevertoooldforindie]

Thank you Nanny Nick. That is great advice.

[Pluvia]

Yes, it's high. Look at Vanguard, Nutmeg etc.