Since forming back in 1765, Lloyds Bank has become one of the UK’s most respected financial service providers. It offers everyday banking services and now has a range of different accounts that let you start investing.
There are a couple of different options – you can either invest in up to 3,000 funds across various asset classes and geographical locations, or put your money into a managed fund, where the investment decisions are made for you. We’ve compiled some of the key aspects of Lloyds share dealing to help you find out if it’s right for you.
All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.
Lloyds provides a variety of simple ways to help you start investing your money. As well as offering accounts for investing in shares and funds, it also offers market research, price alerts, and trading tools to help you make educated decisions. Simply set up your account, use its research centre to choose investments and invest.
Lloyds has 4 different accounts that you can invest in:
With the Lloyds share dealing account you can invest in shares, investment trusts, ETFs, funds and Lloyds’ Select List, which is a list of top fund picks.
You can choose which investments you want to invest in. Lloyds has a Research Centre to give you up to date news and market information, to help you make informed investment decisions.
With this account there aren’t any tax benefits. If you make more than £3,000 in each tax year then you’ll have to pay tax on your profits.
The share dealing ISA is exactly the same as the share dealing account, except it’s tax free. You get an allowance in each tax year, up to which you can invest without paying tax on your profits. The allowance for the 2024/2025 tax year is £20,000.
Lloyds has two accounts that let you invest in its ready made portfolios. The only difference between these accounts is that the Investment ISA lets you use your annual ISA allowance. The allowance for the 2024/2025 tax year is £20,000.
The ready made portfolios are funds that have been created and are maintained by professional fund managers. It’s all done on your behalf in exchange for a fee. The fund manager pools money from investors (like you) and buys and holds assets. There are 3 different risk profiles, each with a different risk profile: low, medium and high.
Here’s the breakdown of each portfolio:
The fees are different for the different types of investment account.
| Admin charge | £20 per 6 months (includes both a share dealing account and an ISA) |
|---|---|
| Online trades | £11 per deal, but £0 for international shares (1% currency conversion fee applies) |
| Frequent trading commission | £8 per trade if you trade 8 or more times in each quarter |
| Fund dealing | £1.50 per trade |
| Scheduled regular investments | £1.50 per trade |
Ready made portfolios have some additional fees:
| Fee name | Managed Growth Fund 2 | Managed Growth Fund 4 | Managed Growth Fund 6 |
|---|---|---|---|
| Service fee | 0.24% | 0.24% | 0.24% |
| Ongoing charge | 0.28% | 0.26% | 0.26% |
| Transaction costs | 0.09% | 0.11% | 0.12% |
With over 250 years of experience, Lloyds has built a strong reputation as one of the UK’s leading banks and investment businesses.
It is fully authorised by the Financial Conduct Authority (FCA) and is bound by rules and regulations in the conduct of investment business. It’s also covered by the Financial Services Compensation Scheme (FSCS), which means that you are covered by up to £85,000 if Lloyds were to go bust.
Lloyds share dealing is a pretty standard account. If you already have a Lloyds banking account then it’s a pretty inconvenient add on and uses the same app as mobile banking. Its range of ready made portfolios is pretty small but enough to get you started if you want to try out investing.
If you’re feeling confident and want to choose your own investments, you can do this too. There isn’t a massive range of international stocks but again, enough to get you started.
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