Drawdown charges and interest rates
Drawdown is available through the HL Self-Invested Personal Pension (SIPP)
It's free to set up drawdown with us through the HL SIPP. And you can start, stop or change your drawdown income withdrawals whenever you want, without charge.
Please note that the charges below will apply to the HL SIPP and drawdown account separately if you hold both accounts.
You can see the interest rates paid on any cash held in an HL SIPP Drawdown account here.
Annual HL account charge
Our annual charge for holding investments in an HL SIPP and drawdown account is never more than 0.45%. There’s no charge for inactivity or for holding cash.
Shares
0.45%
capped at £200 per year
Including UK and overseas shares, investment trusts, exchange-traded funds, VCTs, gilts and bonds.
Funds
| Value of funds (tiered) | Charge |
|---|---|
| On the first £250,000 | 0.45% |
| On the value between £250,000 - £1m | 0.25% |
| On the value between £1m - £2m | 0.1% |
| On the value over £2m | No charge |
What you pay is based on the value of your investments. Fund charges are calculated in bands: 0.45% each year on the first £250,000 of funds, 0.25% each year on the value of funds between £250,000 and £1m, 0.1% each year for funds between £1m and £2m, and no charge on the value of funds over £2m.
Example of account charge
Based on the 0.45% account charge, if you invest £40,000 in funds and £20,000 in shares, your account charge would be £22.50 per month*.
| Monthly charge | |
|---|---|
| £40,000 in funds | £15 |
| £20,000 in shares | £7.50 |
| £22.50 total (funds + shares) |
*Our annual account charge is calculated and paid monthly. Your monthly charge will depend on the exact value of the investments in your account each month, which may vary due to market fluctuation and growth.
Important note about charges
The investments you choose may have their own charges, such as charges from a fund manager. These are in addition to our account charges. You can find these in each investment’s key investor information. A bid/offer spread may also apply to funds - see our Guide to Fund Prices for details.
These charges apply to the HL SIPP and drawdown separately if you hold both accounts.
Dealing charges
Dealing charges are what you pay each time you buy or sell an investment.
Fund dealing
Includes unit trusts and open-ended investment companies (OEICs).
There’s no dealing charge for buying or selling funds.
Share dealing – online and mobile app
Including UK and overseas shares*, investment trusts, exchange-traded funds, gilts and bonds.
| Number of deals in previous month | Charge per deal |
|---|---|
| 0 - 9 | £11.95 |
| 10 - 19 | £8.95 |
| 20+ | £5.95 |
*There’s an added foreign exchange charge for overseas share deals, depending on deal size. See our overseas share dealing page for details.
Automatic reinvestment
If you’d like any share income automatically reinvested, we’ll reinvest your income when it reaches £10 per holding or the amount you choose. There’s no charge for this.
Financial advice
The charges above don’t include the cost of any personal advice you might need. If you need financial advice, our adviser would agree this cost with you separately.
Other charges
| UK Stamp Duty Reserve Tax (SDRT)/Stamp Duty | 0.5% on purchases of UK shares. For shares that can't settle electronically, rounded up to the nearest £5 (for purchases worth more than £1,000) |
| PTM (Panel on Takeover and Mergers) | £1.50 on UK share deals over £10,000 |
| Irish Stamp Duty | 1% on purchases of Irish shares |
| French Financial Transactions Tax | 0.3% on purchases of certain French shares |
| Spanish Financial Transactions Tax | 0.2% on purchases of certain Spanish shares |
| Italian Financial Transactions Tax | 0.1% on purchases of certain Italian shares |
1% of the trade value, minimum charge £20, maximum £50.
Made in addition to the charges above, where applicable.
| Account closure fee | No charge |
| Early account closure fee (applies when your SIPP that has been open for less than 12 months and you close it by taking all the money as income) | No charge |
| Automated sales to cover charges (selling fund units or shares to cover fees) | No charge |
| Quarterly statement and valuation | No charge |
| Transfer out (as cash) | No charge |
| Transfer out (as stock) | No charge |
Other charges may apply in specific circumstances - see the terms and conditions for details.
How to pay charges
There’s no need to remember to make any payments – we’ll automatically take our charges each month. You’ll need to keep cash in your account to pay any charges – there is a suggested minimum cash balance based on the size of your drawdown account, but you can hold as much cash as you like.
FAQs
If you don't have enough cash in your drawdown account to cover charges, we'll first try to collect charges using any loyalty bonuses you received on investments you bought before 1 April 2014.
After that, we'd take charges using any cash in your SIPP account, or failing that, your Fund and Share Account, if you have one. As a final resort, we'd sell holdings in your drawdown account to cover any charges and restore the suggested minimum cash balance. There are no additional charges for this. We will normally sell units of your largest fund holding first.