DIRECT INVESTMENTS PLAN FOR THE FUTURE WITH OUR SHARE DEALING SERVICES

Transcription

1 DIRECT INVESTMENTS PLAN FOR THE FUTURE WITH OUR SHARE DEALING SERVICES

2 Direct Investments Contents Introduction 1 Before you invest 2 How to buy and sell shares 5 Your Share Dealing Account 6 Maximise your tax benefits 8 Charges 9 Tools and support 13

3 Introduction I want to kick start my portfolio Straightforward share dealing Lloyds Bank Direct Investments is an easy-to-use share dealing service that lets you buy and sell shares online or by phone, and deal in the UK or international markets. Whether you want to deal monthly, buy and sell shares regularly, or sell an existing share certificate, with our Share Dealing Account you can deal safely and securely. 1

4 Before you invest I want to be sure it s the right time for me to invest Things to consider We provide an execution only service, which means we only carry out the instructions you give us. If you re unsure whether or not to invest you should seek appropriate financial advice. There are a number of important considerations that you should think about before investing, including the following: Cash for emergencies Before introducing any risk to your money, it s sensible to have some accessible cash as an emergency fund for any unforeseen events. Generally, it s considered appropriate to have at least three to six months worth of income available in a savings account. However, you should consider what level of cash reserve is appropriate for your own circumstances and whether you will need the money for something else in the short term or in case of an emergency. Once your money is invested you may not get back the full amount you invest as prices can fall as well as rise. Sort out any debt It s important to ensure that any debts are under control before considering investments. Interest payments on debts, particularly short-term loans and credit cards or store cards, are generally much higher than the returns you ll get from any investments, and large debt repayments may stop you reaching your financial goals. For help and advice on debt management visit Appropriate protection Life Cover, Critical Illness Cover and Income Protection are areas you may want to address before investing, especially if you have a family or people who rely on you financially. Your work may offer these as benefits, but you should review the level of cover to ensure that you have adequate cover to suit your needs. 2

5 Before you invest There are lots of investment options available in the market. The right one for you will depend on a number of factors including your financial objectives, personal circumstances and how much you can afford to tie up in longer-term investments. How long can you invest your money? This will narrow down the type of product that will be suitable for you. You should only consider investing your money if you re prepared to do so over the longer term. Could you afford to lose some or all of the money you ve invested? You should only invest in a product with a level of risk that you re happy with. The higher the risk, the higher the potential return, but also the higher the potential loss. There are no guarantees, so you ll need to be prepared for the fact that, with any stock market-linked investment, values will fluctuate on a daily basis and you may get back less than you invested as prices can fall as well as rise. It s important that you see investments as something to consider in addition to savings, not as an alternative. What is your attitude towards risk? Consider how much risk you re prepared to take with your money and you should only trade with money you can afford to lose. When investing, consider creating a balanced portfolio of savings and different types of investments. Diversification can help reduce your risk. 3

6 WISE

7 How to buy and sell shares I want different ways to deal Choose your account and how you operate it Choose the account that suits you With our Share Dealing Account we take care of the administration and paperwork for you when you trade. Our ISA is a tax-efficient version of our Share Dealing Account you benefit from the same features and low commission rates for dealing while maximising your tax savings. The value of any investment can go down as well as up and you may not get back the full amount you invest. Lloyds Bank Direct Investments offers an execution only service, i.e. we only carry out the instructions you give us we do not provide advice on your investments. Buying and selling shares may not be for everyone. If you re not sure, you should consult an independent financial adviser. With Lloyds Bank Direct Investments you re in control of your investments and how you choose to deal. Online You can access your account online 24 hours a day at lloydsbank.com/shares By phone For those times when you d prefer to pick up the phone you can call us on Our opening hours are Monday to Friday, 8am 9.15pm and Saturdays, 9am 1pm. 5

8 Your Share Dealing Account Straightforward and secure management of your account Your account benefits We hold your shares securely in a Share Dealing Account so there s no need to send valuable share certificates through the post each time you deal. We take care of all the administration and paperwork for you, leaving you free to focus on selecting and planning your investments. There s no cost for transferring any certificated holdings into your Share Dealing Account. Deal online or by phone and view your portfolio as often as you like. Share Dealing Account benefits You can access your account online or over the phone. We take care of processing all dividends, corporate actions* and associated paperwork. Settlement time is faster proceeds from your sales are usually paid after two working days instead of 10 days for certificated dealing. If you re an online customer you can view all your holdings online. Telephone customers will receive all statements by post. Competitive dealing commission charges and a six-monthly administration charge of 16. Choose your investments Stocks and shares on the London Stock Exchange, AIM and six markets in Europe and North America. Unit trusts and Open-ended investment companies (OEICs) from leading providers, investment trusts** and exchange traded funds***. UK government gilts and bonds. *A corporate action is any event that brings material change to a company and affects its stakeholders. **An investment trust is a form of collective investment, which is constituted as a Public Limited Company. ***An exchange traded fund is an investment fund that is traded on a stock exchange, which can hold a number of different assets within it. 6

9 $

10 Maximise your tax benefits Making the most of my investments Trade with a tax-efficient account With our ISA you ll benefit from the same features as our Share Dealing Account while maximising your tax benefits. You ll also pay the same commission rates for dealing. You can: Open a stocks and shares ISA. Transfer your existing stocks and shares or cash ISAs to Lloyds Bank Direct Investments and manage all your investments conveniently. You ll get a free Share Dealing Account We ll automatically open a Share Dealing Account for you when you open an ISA with us, so that you can conveniently manage other investments alongside your ISA. You won t pay the usual six-monthly fee for the Share Dealing Account and you ll be able to view both your accounts under one account number. Make the most of the tax benefits No capital gains tax to pay on any profit made within the ISA. Income from corporate bonds and gilts is completely tax free. If you re a higher rate or additional rate taxpayer you won t pay any additional tax on the gross dividends from shares. You can only open one stocks and shares ISA per tax year. The government could change the level, basis or rate of taxation or remove the favourable tax treatment of ISAs. The value of current tax relief depends on your individual circumstances. Each tax year you can use your ISA allowance until 5 April 8

11 Charges How much will it cost me to trade? Share Dealing Accounts and ISAs We charge a commission for each deal, whether done online or over the phone. Online dealing commission UK and international* shares Deals per quarter Dealing Commission or more (Frequent Trader rate**) Telephone dealing commission UK shares Deal value Dealing Commission 0 1, ,001 2, ,001 4, ,001 10, , Deals per quarter Dealing Commission 1 12 See table above 13 or more (Frequent Trader rate**) flat rate regardless of deal value 9

12 Charges Telephone dealing commission international* shares Deals per quarter Dealing Commission or more (Frequent Trader rate**) *International trading Foreign currency conversions are required to facilitate the settlement of international transactions. We adjust the exchange rate by 1.5% and keep the difference as our fee. The available exchange rate is based on the exchange rate provided by Digital Look. Indicative exchange rates are provided prior to trading, and the rate applicable to the individual trade is confirmed on the trade confirmation once the deal has been completed. **Frequent trading Our standard dealing commission rates will apply for the first 12 trades placed across your Share Dealing Account or Share Dealing ISA, per calendar quarter (ending 31 March, 30 June, 30 September and 31 December). The Frequent Trader rate will apply to any additional deals you place in the same quarter. The rate applied will depend on whether the deal is placed online or by phone. Standard rates will resume at the beginning of the next quarter. The Frequent Trader rate does not apply to trades placed in OEICs, Unit Trusts or certificated sales. Funds dealing commission telephone and online dealing Online Phone 10 flat rate per deal 15 flat rate per deal Online dealing commission certificated sales Deal value Dealing Commission Any Telephone dealing commission certificated sales Deal value Dealing Commission 0 1, ,001 2, ,001 4, ,001 10, ,

13 Charges Administration charges Account type Six-monthly account charge Share Dealing Account 16* Account type Monthly charge, payable every six months ISA Standard 0.25% + VAT Minimum Maximum VAT 60 + VAT *This charge is waived if you hold a Lloyds Bank Share Dealing ISA as well as a Lloyds Bank Share Dealing Account. Closing your account Account type Share Dealing Account ISA Account charge FREE The monthly administration charge will be based on your valuation until the account is closed. There may be additional charges for dealing, stock transfers out and rematerialisation (the process by which electronic holdings can be converted into physical certificates) as set out elsewhere in this charges information. 11

14 Charges Additional charges The following additional charges will apply if specific events occur in relation to your Lloyds Bank Share Dealing Account or Lloyds Bank Share Dealing ISA. Service Charge Dividend reinvestment 2%, maximum 15 Cash withdrawal by cheque 30 Rematerialisation (issue paper certificate) 10 Stock transfers out (per holding) 10 CHAPS payments 20 Returned cheque/dd charge 20 Copy of consolidated tax certificate 18 Duplicate contract note (if six months after original) 12 Duplicate statement/valuation (per item) 12 Request for replacement share certificate 30 Debit interest Lloyds Bank base rate + 5% Probate valuation Distribution of assets Free Free Lodging a Power of Attorney 30 All charges include VAT where applicable. Premier and Private Banking customers qualify for reduced commission and administration charges. For full details of these charges please visit our website lloydsbank.com/sharedealingcharges ISA Charges The following charges apply only to the Lloyds Bank Share Dealing ISA. Service Voiding of ISA Repair of ISA Charge 25 + VAT 25 + VAT 12

15 Tools and support Tools to help with my investments Essential insight at your fingertips Our tools and research can help you make the right investment decisions. They re available online at lloydsbankmarketwatch.com You can: View share prices, charts and performance tables. Search for funds by fund manager, charges or performance. View company news and top risers and fallers. Create a virtual watchlist and set price alerts. Read up on funds and fund managers. Receive market news. View company profiles and annual reports. Past performance is not an indication of future performance, and the value of your investments and the income from them may go up as well as down so you may not get back the full amount you invested. FIND OUT MORE Visit lloydsbank.com/shares or call

16 Apply for an account today Go to lloydsbank.com/shares ÕÕ Call us on If you d like this in another format such as large print, Braille or audio please ask in branch. If you have a hearing or speech impairment and would prefer to use a Textphone, please feel free to call us on (lines open 24 hours a day, seven days a week). If you are Deaf and prefer to use BSL then you can use the SignVideo service available on our website: lloydsbank.com/signvideo.asp Important information The Lloyds Bank Direct Investments Service is operated by Halifax Share Dealing Limited. Halifax Share Dealing Limited. Registered in England and Wales no Registered Office: Trinity Road, Halifax, West Yorkshire, HX1 2RG. Halifax Share Dealing Limited is authorised and regulated by the Financial Conduct Authority, 25 The North Colonnade, Canary Wharf, London, E14 5HS under registration number A Member of the London Stock Exchange and an HM Revenue & Customs Approved ISA Manager. Lloyds Bank plc. Registered Office: 25 Gresham Street, London EC2V 7HN. Registered in England and Wales no Calls may be monitored or recorded in case we need to check we have carried out your instructions correctly and to help improve our quality of service. We are members of the Financial Services Compensation Scheme (FSCS) and covered by the Financial Ombudsman Service. Information correct as at October M56441 (10/15)