Personal Portfolios & ISA on Fundzone

Product charge

We apply a stepped product charge for each product held on Fundzone, one for the Stocks and Shares ISA and one for the Personal Portfolios. Each of these charges is based on the combined value of investments in both products, as shown in the table below.

Comparing platform charges

Jargon in financial services can be confusing, which makes it hard for your clients to compare services or understand what they'll pay. This document identifies the main components to platform charges and explains what these different charges might look like.

Comparing platform charges – Fundzone

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%):

For example, under the base rate announced on 23rd March 2023 of 4.25%, the rate we pay to customers on product level cash accounts is 1.88% 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 2.25%, minus 0.35%; i.e., 0.00% + 0.15% + 0.50% + 1.40% - 0.35% = 1.88%

Interest is calculated daily. If the base rate is negative this table will not apply and paid rates may become negative. When the Bank of England base rate changes, the rate paid to customers will be updated within five working days. The interest rate on the Cash account is 0.00% per annum.

Cash management administration charge

The rate we earn from our banking partner(s) may be higher or lower than base rate and may vary daily. We retain any additional interest earned as a margin to cover costs in managing cash. We call this margin the Cash Management Administration Charge (CMAC). The CMAC is taken directly from the interest received from the bank(s), so will not appear as a separate 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 Balance report to do this.