as of 13/05/2021 at 3:48 pm
Customers cite ii’s fee structure and good customer feedback as reasons for choosing them for a pension drawdown. Experiences are very mixed – some report difficulties getting set up, referring to paperwork and lengthy transfers, while others say it’s very easy. Their management of drawdown gets some negative comments, many referring to slow payments.
Interactive Investor is one of the few groups that has a fixed £ fee, rather than a %. It has 3 different price plans, with the standard plan costing £19.99 per month for a SIPP, which also includes one free trade per month. This makes it much cheaper for larger portfolios, but expensive for smaller ones. If you have more than about £90,000 or you regularly buy and sell shares, the costs advantage will usually kick in.
In July 2020 Interactive Investor acquired The Share Centre, following their acquisition of Alliance Trust Savings in July 2019. This makes them one of the largest groups in the market, second only to Hargreaves Lansdown.
If you know what you're doing, have a larger portfolio and don't really give a toss about bells and whistles, it's worth a look. Having said that the app is really nice.
There is a wide range of investments from which to choose. It's likely to suit more confident investors and those more interested in share dealing.
Investors approaching retirement will be pleased to know that it removed any additional drawdown admin fees in October 2020, now offering this service at no extra cost. ii are also waiving the first 6 months' SIPP fees for new users who open a pension.
Interactive Investor will typically be one of the cheaper pensions options on the market for those in both the saving up phase and drawdown phase.
The second-largest platform for investors, administering over £18bn of investments
£25 minimum monthly investment
"Hello, I have an old company Defined Contribution (DC) pension and a Free-Standing Additional Voluntary Contribution (FSAVC) pot of £430,000. I'm 55 next month and am thinking of moving into a drawdown SIPP (Interactive Investor or AJ Bell). I am thinking of taking my 25% and leaving the rest invested until I need a regular income in my mid 60s. I want to use the lump sum to top up my earnings, as I need use up to £20,000 to change my car and new kitchen. (I have no dependants and don't need a large income) I've looked at different funds and am thinking of splitting the pot into 5 or 6 (3 equity funds - maybe Fundsmith, Vanguard LifeStrategy and one other, along with a property fund and a bond fund. I am trying to find a financial adviser who is willing to spend a few hours to review my plans to make sure I'm not making any major mistakes, and that I won't run out of money (the tools I've found online all seem to come up with slightly different results), but so far they all seem to want an ongoing relationship. Where is the best place to find an adviser who will do a one off review? (I've tried the two main recommended websites for finding an advisor) Also I want to make sure my money is as safe as possible if any of the companies/fund managers get into financial difficulty. I know the Cash protection is £85,000, but I am unsure whether the investment protection is per fund or per SIPP. Thanks"
16/07/2019Read our reply
"Hi. I am looking for a Junior ISA for my son and can't decide between a robo investor like Wealthify, or investing via Interactive Investor with an investment trust for my son's Junior ISA. I want to invest ethically and am happy to research investment trusts myself. The fees seem similar and both have fund managers. What would you do?"
01/07/2019Read our reply
"I want to invest in one specific company’s shares. What’s the cheapest way to do this via an ISA?"
21/05/2019Read our reply