Hi there! If you know us a little bit, you know we have some favorite investment parties. Not from a marketing standpoint, but from experience. Our goal at ELFIN is to invest as easily, safely and inexpensively as possible. It’s about our money and our future, so safety is ahead. Reputable parties and don’t have scummy parties on them. Easy because sometimes life is hard enough. For God’s sake, don’t let things get too complicated if we want to put our money to work smartly. And cheap, well that’s important too. The lower your costs, the more money you have left for yourself. Brand New Day lowers fees, but what does this mean? By the way, read the comprehensive review on investing at Brand New Day here.
Pst: investing involves risk. No matter how “safe” you do it, you may lose some of your deposit. So don’t invest with money you can’t afford to lose. Promise?
Getting started investing yourself at Brand New Day? Open a free account here.
Brand New Day lowers costs
Brand New Day lowers fees for free investment account (box 3) and children’s investment account (box 3). Brand New Day was not the cheapest party to invest, so this is fine news for us.
No more deposit fees
Previously, customers paid a 0.50% deposit fee on each deposit they made. That is now a thing of the past. For all other transactions, such as switching between mutual funds or selling investments, they already charged no fees. And since Jan. 10, 2022, also not for purchasing investments. They reduce service charges in model box 3 investing. Clients can choose their own funds (free investing), as well as invest in model portfolios provided by experts. As of today, they are reducing the service charge for those model portfolios from 0.44% to 0.34% per year.
The annual service charge for free investment remains unchanged, which is still 0.44% per year. Note: So these changes only apply to free investment accounts (that is, the investment account and the children’s investment account). For other investment accounts with a special tax structure (such as retirement account investing), fees remain as they were.
The new cost structure box 3 model investing
The new charges for model investing and final account investing will be as follows:
- Service charge: 0.34%. These charges are calculated daily and amortized quarterly.
- Fund fees: 0.15%-0.17%. The amount depends on the portfolio you choose.
- Transaction fee: 0.0%. This is super news, so previously you were paying 0.5% fees per transaction.
- Deposit fee: 0.0%.
The service charge for free investment is 0.44%. Fund fees may also be higher with free investment.
Model investing versus free investing
So model investing sounds the cheapest – it is – but what is the difference at Brand New Day between model investing and free investing? With model investing, you can choose from 1 of 5 model portfolios put together by Brand New Day experts. They automatically invest your money and they apply a risk reduction when you approach the time when you want to live off your accumulated wealth. In free investing, they also do the latter if you specify it, but the difference here is that you don’t choose from 1 of 5 model portfolios, but you go and create your own. You have a choice of 8 stock funds and 6 bond funds.
Why choose free investing?
If you would like to focus a little more on stocks versus bonds, for example? Our preference is passive investing, so choosing a model portfolio, leaving it to the experts and choosing the risk profile that suits you.
Open a free account with Brand New Day here
