- Lloyds Bank adds new stocks and shares Isa and general investment account
- They are geared toward 18 to 25 year olds
Lloyds Bank has launched a new range of investment accounts aimed at 18 to 25 year olds.
Called Invest Wise, the new addition to Lloyds’ investment service offers a general investment account and a stocks and shares Isa to young investors as it looks to battle back against DIY platforms.
Younger DIY investors will be able to invest regular sums with a minimum of £20 a month. There are no fees for regular investing.
Any trades outside of a regular investing plan will be subject to a fee of £11. If you have a Premier or Private bank account, this is £10.
Lloyds Bank has launched a new investment account and stocks and shares Isa for 18 to 25 year olds
The bank is aiming to make it easier and cheaper for this cohort to grow their wealth as 42 per cent have had to turn to parents for help with money, new figures from Lloyds suggest.
The research shows getting on to the property ladder is the biggest motivator for people this age to start investing, followed by starting a career, finishing university, getting married and starting a family.
There are no admin fees for Invest Wise accounts if you are aged 18 to 25. On turning 26, investors will pay £40 a year in admin fees which will be taken in a £20 payment every six months.
The admin charge is taken in April and October of each year. If you open your account between the payment dates, the six-monthly admin charge will be taken from the following payment date.
Investors who have a Lloyds Premier or Private banking account will pay £10 every six months instead of £20.
Manuel Pardavila-Gonzalez, managing director of Lloyds Bank Investments, said: ‘We’ve designed Invest Wise as an easy and affordable way to help give people aged 18-25 the confidence to start working towards those goals.
‘They can invest for free using a regular investment plan, meaning more of their own money can go towards investing for their own home, planning their dream trip or building up a nest egg for the next big life stage.’
How is it different to other investment accounts?
The age requirement in place for opening a general investment account or a stocks and shares Isa is 18 – so technically investors this age could open up a general investment account or stocks and shares Isa with any investment platform.
They will have to pay admin fees with most other providers though between the ages of 18-25.
AJ Bell, for example has a 0.25 per cent annual admin fee and a £9.95 standard share, investment trust and ETF dealing charge while Hargreaves Lansdown has a 0.45 per cent admin fee and a £11.95 dealing charge for standard share, investment trust, ETF dealing.
| Goal | % of 18-25 year olds with this investment goal |
|---|---|
| To buy a house/pay off mortgage | 42% |
| Financial security | 41% |
| To save for a holiday | 37% |
| Provide a good financial future for my family/children | 33% |
| Personal wealth generation (to make more money) | 32% |
| Saving for retirement | 22% |
| I don’t have any investment goals | 7% |
| Other | 1% |
| Lloyds Bank | |
On a pot of £10,000, Lloyds’ Invest Wise annual £40 admin fee on turning 26 equates 0.4 per cent. If you have a smaller pot to invest this could prove pricey on smaller investment pots but become progressively good value on larger pots.
If you already have a Lloyds Premier or Premium bank account the Invest Wise account fees are slightly reduced.
Lloyds will hope the main appeal of these accounts is that they allow young investors to have a hassle free start to investing by giving them access to range of other tools as well as it being linked to their current account.
Those opening one of the Invest Wise accounts will be able to use Lloyds’ ETF quicklist, which launched in September and Lloyds’ Select list of funds.
With the ETF Quicklist, customers can choose from a list of 16 ETFs and invest in them through a share dealing account or an Isa, accessible from their banking app or online.
The ETF list is split into four categories – themes, around the world, fixed income, and trending now, which includes ETFs ranging from UK property to healthcare.
If you already have a Lloyds Premier or Premium Bank account there is also the benefit of slightly reduced fees with an Invest Wise account.
Compare the best DIY investing platforms and stocks & shares Isas
Investing online is simple, cheap and can be done from your computer, tablet or phone at a time and place that suits you.
When it comes to choosing a DIY investing platform, stocks & shares Isa or a general investing account, the range of options might seem overwhelming.
Every provider has a slightly different offering, charging more or less for trading or holding shares and giving access to a different range of stocks, funds and investment trusts.
When weighing up the right one for you, it’s important to to look at the service that it offers, along with administration charges and dealing fees, plus any other extra costs.
To help you compare the best investment accounts, we’ve crunched the facts and pulled together a comprehensive guide to choosing the best and cheapest investing account for you.
We highlight the main players in the table below but would advise doing your own research and considering the points in our full guide linked here.
>> This is Money’s full guide to the best investing platforms and Isas
Platforms featured below are independently selected by This is Money’s specialist journalists. If you open an account using links which have an asterisk, This is Money will earn an affiliate commission. We do not allow this to affect our editorial independence.
| Admin charge | Charges notes | Fund dealing | Standard share, trust, ETF dealing | Regular investing | Dividend reinvestment | ||
|---|---|---|---|---|---|---|---|
| AJ Bell* | 0.25% | Max £3.50 per month for shares, trusts, ETFs. | £1.50 | £9.95 | £1.50 | £1.50 per deal | More details |
| Bestinvest* | 0.40% (0.2% for ready made portfolios) | Account fee cut to 0.2% for ready made investments | Free | £4.95 | Free for funds | Free for income funds | More details |
| Charles Stanley Direct | 0.35% | No platform fee on shares if a trade in that month and annual max of £240 | Free | £11.50 | n/a | n/a | More details |
| Fidelity* | 0.35% on funds | £7.50 per month up to £25,000 or 0.35% with regular savings plan. Max £45 per year for shares, trusts, ETFs | Free | £7.50 | Free funds £1.50 shares, trusts ETFs | £1.50 | More details |
| Hargreaves Lansdown* | 0.45% | Capped at £45 for shares, trusts, ETFs | Free | £11.95 | £1.50 | 1% (£1 min, £10 max) | More details |
| Interactive Investor* | £4.99 per month under £50k, £11.99 above, £10 extra for Sipp | £3.99 per month back in free trading credit (does not apply to £4.99 plan) | £3.99 | £3.99 | Free | £0.99 | More details |
| iWeb | £100 one-off fee (waived until July 2024) | £5 | £5 | n/a | 2%, max £5 | More details | |
| Accounts that have some limits but attractive offers | |||||||
| Etoro* No Isa or Sipp | Free | Investment account offers stocks and ETFs. Beware high risk CFDs in trading account | Not available | Free | n/a | n/a | More details |
| Freetrade* No investment funds | Free for Basic account, £4.99 per month for Standard with Isa £9.99 for Plus | Freetrade Plus with more investments and Sipp is £9.99/month inc. Isa fee | No funds | Free | n/a | n/a | More details |
| Vanguard Only Vanguard’s own products | 0.15% | Only Vanguard funds | Free | Free only Vanguard ETFs | Free | n/a | More details |
| (Source: ThisisMoney.co.uk Feb 2024. Admin % charge may be levied monthly or quarterly | |||||||
