Personal Portfolios & ISA on Fundzone
Including charges, interest rates and funds
What is Fundzone?
Product charge
We apply a stepped charge for each product held on Fundzone. Each charge is based on the combined value of the investments within the products, as shown in the table below.
| Total value of investments (excluding cash) | Annual product charge (deducted monthly) |
|---|---|
| £0 to £49,999.99 | 0.35% |
| £50,000 to £99,999.99 | 0.30% |
| £100,000 to £499,999.99 | 0.25% |
| £500,000 and over | 0.20% |
Comparing platform charges
Interest rates
Each Fundzone customer automatically has access to a cash account. In addition, Fundzone also operates cash accounts at a product level.
The annual gross interest rate we pay to customers on cash accounts is calculated with reference to the Bank of England base rate. This means that you can always work out what the interest rate paid will be, using the table below and deducting 0.35% from the total (with a minimum paid rate of 0.00%; paid rates are rounded up to the nearest 0.01%).
| Base rate (per tier) | % of interest paid to customers (before reduction by 0.35%) |
|---|---|
| 0.00% - 0.50% | 0% |
| 0.50% - 1.00% | 30% |
| 1.00% - 2.00% | 50% |
| 2.00% - 5.00% | 70% |
| 5.00% + | 100% |
For example, under the base rate announced on 1st August 2024 of 5.00%, the rate we pay to customers on product level cash accounts is 2.40% per annum. This is calculated as 0% of the first 0.50%, plus 30% of the next 0.50%, plus 50% of the next 1.00%, plus 70% of the next 3.00%, minus 0.35%; i.e., 0.00% + 0.15% + 0.50% + 2.10% - 0.35% = 2.40%
If you or your client holds £50,000 in cash in various products, they will have received the interest below over the course of 2023:
| From | To | Base Rate | Paid Rate | Interest earned in each period for a static cash holding of £50,000.00* |
|---|---|---|---|---|
| 01/01/2023 | 05/02/2023 | 3.50% | 1.35% | £66.58 |
| 06/02/2023 | 26/03/2023 | 4.00% | 1.70% | £114.11 |
| 27/03/2023 | 14/05/2023 | 4.25% | 1.88% | £125.86 |
| 15/05/2023 | 25/06/2023 | 4.50% | 2.05% | £117.95 |
| 26/06/2023 | 06/08/2023 | 5.00% | 2.40% | £138.08 |
| 07/08/2023 | 31/12/2023 | 5.25% | 2.65% | £533.63 |
*across Fundzone ISA Stocks & Shares or Investment Funds.
Cash management administration charge
Cash account
A cash account is automatically set up as part of your clients' holding on Fundzone. It is used to pay product charges and any adviser charges that are set up. Money in the cash account is held outside of the Fundzone products. This means that for ISA clients any charges that are deducted will not impact their ISA allowance.
The Cash account cannot have a negative balance, so it’s important that you monitor this to make sure there are sufficient funds to cover all charges. You can use our Cash Balances report to do this.
Adviser payments
We have a comprehensive range of adviser charging options on Fundzone, offering your client flexibility and choice.
Adviser charges and product charges will be paid from the Cash account. An ongoing adviser charge can be taken monthly, quarterly, half-yearly and yearly.
If your charge is cancelled, you will need to set up a new adviser charge on Fundzone. A regular initial adviser charge cannot be restarted.
| Adviser charges | Stocks & Shares ISA | Personal Portfolios |
|---|---|---|
| Inital Adviser Charge (% / £) | Yes | Yes |
| Regular Initial Adviser Charge (£) - available for regular payments only | Yes | Yes |
| Ongoing Adviser Charge (% / £) | Yes | Yes |
| Ad hoc Adviser Charge (% / £) | Yes | Yes |