Where do you take my fees from?

Q: I have noticed there is a fee due on my SIPP but no money in my Cash Management Account. There is cash available to invest so would like to understand where the fee will be taken from?

This is a great question and one we get asked a lot.

To make sure we give you the best chance of protecting your tax-wrapped investments from fee deduction we’ll take your ISA fees first, then SIPP and finally any Investment Accounts from the Cash Management Account.

If you don’t have cash available in your Cash Management Account, we’ll collect the fees from cash within your account where the service fee is due.

If you don’t have enough cash in any of your accounts, we’ll normally sell units from the largest holding in your account to cover your fees where the service fee is due.

Any cash you hold with us earns interest. You can find the current rate offered here.

More about the Cash Management Account

As it appears you’re not using your Cash Management Account, I just thought I’d quickly share why we introduced this. We launched this in response to customer feedback in September 2020. It’s a separate account that helps manage cash across a portfolio, pay fees efficiently where possible and provides a place to keep cash when you have yet to decide into which account you would like to invest.

The Cash Management Account is available to pay your fees for ISAs, SIPPs and Investment Accounts under your sole name. It's not available for accounts held under joint names or Junior accounts. Please note, adding money to the Cash Management Account does not affect your tax allowance for ISAs or SIPPs.

Customers with tax-wrapped investments can protect their ISA and SIPP investments by paying service fees from separate cash holdings, without affecting those tax benefits. As long as the balance in the Cash Management Account is sufficient, you won't need to pay fees from your SIPP or ISA account again.

The Cash Management Account also gives you the ability to freely move cash around from one account to another, or simply to keep it as cash. If you want to invest the cash within your Cash Management Account, you will need to move it to the account you want your investments to be held in (ISA, Investment Account or SIPP).

Cash Management Accounts are opened automatically for individual customers, you do not need to request for one to be opened.

Important information - investors should note that the views expressed may no longer be current and may have already been acted upon. Tax treatment depends on individual circumstances and all tax rules may change in the future. Withdrawals from a pension product will not be possible until you reach age 55 (57 from 2028). This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice.