Invest@Work with Fidelity and receive a special discount

The information on this page is all related to our standard service fees and doesn’t reflect any discount that you might be eligible for from your employer.

We believe in giving you great value, so we charge an annual service fee, payable monthly, based on the total value of your investments, this means you pay the lowest rate possible. We do not charge a service fee on Junior ISA and Junior SIPP accounts.

What’s more, we will give you a Cash Management Account that is separate from your other accounts. We collect fees from any cash held there, before we look to take money or sell from investments held in other accounts, for example your tax-wrapped ISA or SIPP.

And did we mention all the award-winning guidance, on-the-go access and support with investing you get? That’s all included.

• The portion of the fee you pay on exchange-traded investments (shares, exchange-traded funds (ETFs), etc.) within an ISA or SIPP is capped at £90 (£7.50 a month).
• You do not pay a service fee on junior accounts, on exchange-traded investments held in an Investment Account, or on cash you hold.

The table below shows how this fee changes, as your investments increase.

To see this in more detail please read the Doing business with Fidelity document.

The same service fee is charged across all of your investments. So, if you hold £300,000 - the fee would be 0.20% across the full amount. For exchange-traded instruments, this portion of the fee is capped at £90 (£7.50 a month) and there is no service fee for these investments when held in the Fidelity Investment Account. There’s also no fee for investments held in a Junior ISA or Junior SIPP.

Investment charges set by the company managing your funds

Ongoing fund charges are set by the company managing the fund and start from 0.06%.

Some funds may also have:

• a bid-offer spread, which is effectively a charge applied when you buy or sell
• a performance fee
• a fund manager buy or sell charge.

We’ve negotiated reduced ongoing charges on hundreds of funds on our platform. We recommend checking each investment's factsheet for more information, as investment charges as can differ between funds.

Share dealing and other charges

• There is a charge made for each buy and sell transaction you place (including switches and dividend reinvestments). This will be deducted from the amount invested or raised through a sale.
  • Regular savings or reinvestment are charged at £1.50.
  • Simple charge of £7.50 for each deal placed online.
  • Phone trades are charged £30.00 for each deal.
• Stamp Duty, levies and taxes: 
  • UK Stamp Duty of 0.5% applies when you buy UK shares
  • Irish Stamp Duty of 1.0% applies when you buy Irish shares
  • UK Panel of Takeovers and Mergers levy of £1 applies on UK share deals of over £10,000
  • Irish Takeover Panel levy of €1.25 applies on Irish share deals of over €12,500
• Foreign exchange charge applies for dealing in offshore funds that are not in sterling. 

Download the Doing Business with Fidelity document for more fees and charges information.

Service Fee Charges on cash within your account

Cash in the Fidelity SIPP is currently held as ‘Cash Within Your Account’.

We currently don’t charge a service fee on Cash Within Your Account. However, we reserve the right to retain an amount of the interest received from the bank(s) we deposit your money with to cover the cost of administering these cash balances. Please go to www.fidelity.co.uk/cash for further details.

Individual accounts

We deduct your service fee around the 1st of every month. This is calculated based on the total value of your investments held over the previous month.

We include any joint accounts when we’re adding up all your investments to work out what service fee rate you pay, ensuring the lowest possible charge.

The total value is then divided by 12 to determine the monthly amount that’s taken from your individual account.

When you pay service fees, they are always taken from your Cash Management Account.

• If you have cash in there, we will take your fees from this cash. This helps protect any tax-wrapped ISA and SIPP investments you may have, as it allows you to pay these fees from separate cash.
• If you don't have enough cash in there, we will sell from your investments to make up the outstanding balance and transfer that to the Cash Management Account. When we do this, we have a hierarchy and start by selling from your largest investment by value and by asset class. This means for example we would take the fee from the largest fund before we take it from an exchange-traded fund or investment trust.

Joint accounts

We deduct your service fee around the 1st of every month. This is calculated based on the total value of your investments held over the previous month.

We only count your joint accounts when we’re working out the service fee on them.

The total value is divided by 12 to determine the monthly amount that’s taken from your joint accounts.

When you pay service fees, they are always taken from your Cash Management Account. 

• If you have cash in there, we will take your fees from this cash. This helps protect any tax-wrapped ISA and SIPP investments you may have, as it allows you to pay these fees from separate cash.
• If you don't have enough cash in there, we will sell from your investments to make up the outstanding balance and transfer that to the Cash Management Account. When we do this, we have a hierarchy and start by selling from your largest investment by value and by asset class. This means for example we would take the fee from the largest fund before we take it from an exchange-traded fund or investment trust.

In most cases, this won’t make any difference to what you pay, as taking 0.35% from two accounts separately is the same as taking 0.35% from the accounts added together.

However, if you hold £5,000 in an individual account (such as an ISA) and £5,000 in a joint account, you’d pay the 0.35% service fee on the individual account (as the total value of investments is over £25,000 [£5,000+£5,000=£10,000]) plus the £90 (£7.50 a month) a year fee on the joint account (as it’s below £25,000) - unless the joint account has a monthly regular savings plan of at least £50.

Here are some scenarios, for illustrative purposes only, that show how we would calculate the service fee you would be charged. If you have less than £25,000 in total there will be a flat fee of £90 (£7.50 a month) a year, although this changes to 0.35% if you have a monthly regular savings plan (RSP). We will usually collect this fee in arrears in monthly instalments of £3.75.  Remember, there are no fees charged on junior accounts or on exchange-traded investments held in an Investment Account.

Example of what you could pay

These fees do not apply to customers using an adviser please see below.

Invest@Work is only available for direct personal investors with Fidelity (i.e. investments that are not through an adviser).

The fees mentioned above are for investments held directly with Fidelity.

If you hold some investments through a financial adviser, then the charges will be different from the ones you hold directly with us.

We suggest you speak with your financial adviser to find out more about what charges and fees will be applied.

From the 1^st September 2020, you may qualify for a service fee discount, on the investments you hold with Fidelity Personal Investing if you are using one of Fidelity’s Invest@Work services and can meet at least one or more criteria listed below:

• You and your employer have registered for our Employee Compliance Reporting service or you have registered for this service as an ‘associated or connected person^*’
• You and your employer have registered for our service that allows you to save into a Fidelity Personal Investing account directly from your salary
• You and your employer have registered for our Invest@Work member benefits service
• You have an eligible Fidelity workplace pension as well as investments with Fidelity Personal Investing and have registered for a discount

Please note - if you are a US person we will not be able to open any new accounts or accept any new investments with Fidelity Personal Investing

What is the discount to the Service Fee?

You will be entitled to a reduced Service Fee on the investments held with Fidelity Personal Investing as detailed below. Please see our ‘Doing Business with Fidelity’ document for full details of how the Service Fee is calculated and how it is deducted from your account.

Please note that ongoing fund charges and transactions fees apply.

You will not be eligible for the discount on your investments if:

• You link a financial adviser, broker or intermediary to your account, however any Personal Investing accounts not linked to a financial adviser will still attract a discount
• If you don’t fulfil at least one of the criteria listed in the eligibility requirements above

Please note - it is at Fidelity’s discretion to stop the ongoing discount at any time.

If you no longer qualify under one or more of the above criteria, your investments will remain with Fidelity Personal Investing, but you may not receive the discount on them. Therefore, if your circumstances change and you stop working for a company that offers these benefits, you must let us know within 30 business days. If you registered for the discount as an ‘associated or connected person^*’ and your circumstances change which mean you are longer meet this criteria you must also let us know within 30 business days. We may recover any discount you received but weren’t eligible for outside of the 30-day notification period.

^*Each employer will use a different definition of an associated or connected person. Please confirm with your employer’s Compliance Team or Code of Conduct and Ethics Office for clarification.

How we take charges into account
To show how these rates of growth may translate into the actual performance of an investment, we have to take into account the various fees and charges associated with investing.

To do this, we’ve assumed that your investments will be subject to charges of 1.1% a year. This would typically include our fees, as well as most fund charges. However, as this is a generic figure it does not take into account the actual fund you are considering, which may have a higher or lower charge. The actual charges you are subject to will be provided in each fund’s Key Investor Information Document.

The impact of inflation
The rates of growth and the chart are shown in pre-inflation (‘nominal’) terms.

The forecast does not directly take inflation into account.  However, we believe that it is a good idea to consider the impact that inflation could have on the value of your money. 

We believe that a reasonable long term assumption for inflation is around 2% each year. This means that for every year, each pound you have is worth 2% less. In some cases, this could mean that, even if your investment grows over time, the value of what you can buy with it becomes less.

Your regular savings
We assume any regular savings will be invested at the end of each month; we also assume that your payments will not increase over time (but you could do this if you wish).

Your taxes
We do not take tax into account for this forecast. While you may have to pay tax on any investments that do not sit within a tax-efficient wrapper like an ISA, Fidelity cannot guide you on this.

Selecting different growth rates
When using this tool, you need to select the rate of growth that you would like to see applied. 

The range of rates available to use is wide and this is so that you can look at different return rate scenarios and see, in simple terms, what effect that has on investment returns.

There is no right or wrong rate to select because the return you may achieve when you invest is never known. This is illustrated by the following investment warning: “it is important to remember that the value of investments can fall as well as rise and you may get back less than you invested”.

The calculator is not trying to predict anything, it is simply allowing you to see how different rates of growth can affect an investment.

Factors that can influence actual returns include:
 

• How long you are invested for (investment returns can be volatile in shorter term)
• How much risk you are prepared to take
• The type of investments you choose (for example, shares or corporate bonds)
• The range of industries you invest into
• The geographical range you spread investment across

What are the basics ?

Before you start investing you’ll need an account to hold investments in.

There are many different types of investment you can put your money into, with the intention of seeing their value (and your money) grow over time. Each investment type has its own characteristics, risks and benefits.   

At Fidelity we offer thousands of funds, shares, exchange-traded funds (ETFs) and investment trusts.

What sort of account can you open?

With Invest@Work you can open a Stocks and Shares ISA, or an Investment Account.

A Stocks and Shares ISA is a tax-efficient way to save and pay no income tax or capital gains tax on returns. The ISA allowance for the 2019/20 tax year is £20,000, and you have until 5 April 2020 to use it.

An Investment Account allows you to invest as much as you like (subject to a minimum level), however it does not offer the same tax-efficient benefits as an ISA.

About risk and return

Risk is about balancing the chance of a loss with the benefit of a higher return over time. Investing tends to work better over the longer term (through the ups and downs of markets) so you should aim to invest for 5 years or more.

Individual equities (shares) usually carry a higher level of investment risk, which often means that the potential for growth is greater, but there’s also a greater possibility that your investment might fall.

Cash funds, on the other hand tend to carry lower risk, but with that comes lower potential returns.

Your tolerance for risk will help you decide which investments to choose.

In setting up your Invest@Work account we will provide you with a small range of investment options to consider, at different levels of risk. These might be helpful to get you started. When your account is open, there are more tools and guidance to help you.

What is a fund ?

Funds are a pool of money which you invest into along with other investors. That money is then collectively invested by a fund manager using their expertise.

This allows you to spread your money across several different investments, without the stress and difficulty of choosing and managing them.

The fund manager will take a fee for providing this service, usually something like 75p a year for every £100 you put into the fund.

What is share dealing?

Share dealing is when you buy or sell shares in a public limited company.

When you buy a share, you become one of the company’s owners and you may be entitled to a share of any profits it makes.

If the company does well, your shares may go up in value because more people want to have a stake in the company. But if the company doesn’t do well, the value of your shares may fall.

What are ETFs and Investment Trusts?

Exchange-traded funds (ETFs) are an increasingly popular way to invest. They track the performance of specific markets or certain types of investments, such as companies that pay a high level of dividend income.

Investment trusts work in a similar way to funds, you invest in the trust and the trust invests in other investments. Where they differ is that investment trusts are publicly listed companies traded on the stock exchange. If you buy shares in one, you become a shareholder, giving you a vote on how it’s run.

Setting up employee compliance reporting takes only a few moments - just ask your employer’s compliance team for their Fidelity ‘employer code’, and then follow these simple steps.

1 Log in

Once you have your code, log in with your username and password

2 Open your Preference Centre

It takes just two clicks:

• Click on Profile in the main menu
• Click on Preference Centre
• Select Employee compliance reporting

3 Enter your employer code

• Make sure you’ve got your Fidelity compliance reporting code from your employer
• Enter your employer code in the box and hit Register

4 Provide consent

Give us your consent by clicking ‘I accept’, and you’re done - we can now take care of the admin and send your trading details to your employer automatically so you don’t have to

Setting up employee compliance reporting takes only a few moments - just ask your employer’s compliance team for their Fidelity ‘employer code’, and then follow these simple steps.

1 Log in

Once you have your code, log in with your username and password

2 Open your Preference Centre

It takes just two clicks:

• Click on Profile in the main menu
• Click on Preference Centre
• Select Employee compliance reporting

3 Enter your employer code

• Make sure you’ve got your Fidelity compliance reporting code from your employer
• Enter your employer code in the box and hit Register

4 Provide consent

Give us your consent by clicking ‘Confirm’, and you’re done - we can now take care of the admin and send your trading details to your employer automatically so you don’t have to

Setting up your discount takes only a few moments - just ask your employer for their Fidelity ‘employer code’, and then follow these simple steps.

1 Log in

Once you have your employer code, log in with your username and password

2 Open your preference centre and find the discount section

It takes just three clicks:

• Click on 'Profile' in the main menu
• Click on 'Preference centre'
• Select 'Register for Invest@Work discount'

3 Enter your employer code

• Make sure you’ve got your Fidelity employer code (this will be four letters followed by 01, e.g. ABCD01)
• Enter it in the box and click 'Register'

4 Read the terms and confirm that you agree with them

Read the information provided and if you consent, click ‘Confirm’. That's it, you’re done! Your discount has been set up.

When you are ready, the help choosing investments page will open. This will open in a new tab.
 
Once you have chosen investments, you will need to come back to this page if you want to open an account.

Fraudsters are impersonating Fidelity, falsely claiming the company is going into liquidation. The scam encourages people to call a number regarding the redemption of their assets. Fidelity is not going into liquidation. This number does not belong to Fidelity. If you shared any personal or account information or have redeemed any assets, please contact Fidelity and your bank immediately and report the matter to Action Fraud.

Fraudsters have also impersonated Fidelity to promote a ‘Fixed Interest Investment ISA Bond’ which offers fixed rates of returns following a minimum initial investment. This is an investment scam and if you think you’ve been targeted and made an investment already, contact your bank immediately and report the matter to Action Fraud. Additionally, the scam encourages people to call a number regarding the transfer of investments from Legal & General to Fidelity. This number does not belong to Fidelity or Legal & General.

Read more about common threats and what you can do to protect yourself