Ben Summers, Head of Personal Investing at Vanguard explained the delay via an email sent out to customers on Wednesday evening. It states "On 12 December 2024, we announced that we would be introducing a minimum account fee along with other changes to our terms and conditions. We have decided to extend the notice period for these changes. The changes will now come into effect on 28 February 2025 (previously 31 January 2025)".
What does the delay mean for Vanguard customers?
Vanguard is pressing ahead with its decision to apply a minimum monthly fee of £4 per month for customers who self-manage their Stocks and Shares ISA, General Investment Account or Personal Pension (SIPP). However, the date of implementation has changed from 31st January 2025 to 28th February 2025. Vanguard chose not to reveal the reason for the decision, however, many customers had already voiced their concern at the lack of notice with many taking to Trustpilot to vent their frustrations. Customers were given seven weeks notice, however, transfers can often take as long as 12 weeks to finalise. Referencing SIPP transfers, Investment platform AJ Bell states "As a guide, cash only should take 2-4 weeks, equities 4-6 weeks, funds 6-8 weeks and foreign holdings 10-12 weeks".
Will you get charged the £4 monthly fee if your transfer is delayed?
Vanguard has confirmed that customers 'will not pay the minimum account fee if they have instructed a full transfer out and/or a full withdrawal or closure of their account before 28 February 2025. This applies even if the transfer or account closure process is not complete by this date'. It means that if you have yet to make a decision on whether to transfer your investments to an alternative provider, you still have time. Take a look at our article '5 top alternatives to Vanguard' where we reveal the best alternatives to Vanguard based on a number of scenarios. We also include some helpful heatmaps so that you can compare the costs of transferring your ISA or Pension to an alternative provider.
How will the new minimum monthly account fee impact you?
Those who self-manage their investments and have a modest portfolio of £5,000 will see fees rise from £7.50 to £48 per year and those investing their full ISA allowance of £20,000 will see fees rise from £30 per year to £48 per year from 28th February 2025. The account fees for balances over £32,000 are unchanged, meaning those with portfolios larger than £32,000 will not be hit by any additional fees. There are no changes to the Vanguard Junior ISA and account fees remain capped at £375 per year.
Here is how the changes to Vanguard's fees will impact different investment amounts:
| Total balance of investments | Vanguard fees prior to 28th February 2025 (Annual) | Vanguard fees from 28th February 2025 (Annual) |
| £500 | £0.75 | £48.00 |
| £1,000 | £1.50 | £48.00 |
| £5,000 | £7.50 | £48.00 |
| £10,000 | £15.00 | £48.00 |
| £20,000 | £30.00 | £48.00 |
| £50,000 | £75.00 | £75.00 |
| £250,000 | £375.00 | £375.00 |
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