- Price reductions for AJ Bell customers come into effect this week
- Interest paid on ISA cash balances increases to 2.5-3.5%, higher than previously announced
- Reduced dealing charges and increased cash interest rates on Sipp accounts first announced in December are now in effect
- Charge reductions exemplify AJ Bell’s continued commitment to share economies of scale with customers as it grows
Leading DIY investing platform AJ Bell has cut dealing charges and increased interest paid on cash balances for customers, going further than previously announced on ISA cash interest rates.
The business first announced a significant package of pricing changes for customers in December of last year, effective from 1 April 2024.
Trading fees through the AJ Bell website and app have now been cut from £9.95 to £5, while charges for frequent traders have been reduced from £4.95 to £3.50, in line with December’s announcement.
Increases to the rates of interest paid on Sipp cash balances are also now in effect, as announced in December.
Continuing its commitment to sharing economies of scale with customers and offering low overall investment costs, the platform has since opted to increase ISA cash balance interest rates further than originally announced.
Effective from 1 April, the platform now pays a minimum 2.5% interest on cash held in ISA accounts, rising to 3.5% for larger balances, an increase on the previously announced range of 1.95% to 2.7%.
AJ Bell does not apply platform custody charges to cash balances, a practice sometimes referred to as ‘double dipping’.
AJ Bell D2C managing director Charlie Musson says:
“AJ Bell has a long-standing commitment to making investing simple, straightforward and low-cost. That approach continues to prove popular and, in line with our philosophy of sharing economies of scale with customers, we’re pleased to increase interest rates paid on ISA cash balances by more than previously planned.
“As we approach the end of another busy ISA season, this is further testament to AJ Bell’s commitment to delivering a low-cost, easy to use investment platform for the hundreds of thousands of customers across the UK that invest with us.”
Pricing effective from 1 April:
Trading fees
The costs customers pay to buy and sell exchange traded investments (Shares, ETFs, Investment Trusts and Bonds) via the AJ Bell D2C platform website and app have been reduced from £9.95 to £5.00 per trade. Dealing charges for frequent traders placing 10 or more trades in the prior month have been cut from £4.95 to £3.50 per trade.
Cash interest rates
Cash held on the AJ Bell D2C platform is readily available for customers to invest or withdraw and in most cases represents a short-term position while customers wait for investment opportunities. This can differ for pensions, particularly where customers are approaching or in retirement, as they will often hold larger cash balances to fund short to medium term income withdrawals.
In December 2023 the business announced it would therefore introduce higher rates of interest on cash held in pension drawdown, ranging from 3.45% for balances below £10,000 to 4.45% for balances over £100,000. These changes are now in effect.
At the same time it also announced plans to increase rates of interest on cash held in ISA accounts to a new range of 1.95% - 2.7%.
The business has subsequently opted to go further than this, increasing rates of interest paid on ISA cash balances to 2.5% - 3.5%.
A full table of the new interest rates is provided below. The rates in bold text are new and took effect from 1 April 2024:
