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Interactive Investor vs Vanguard

Is Interactive Investor cheaper than Vanguard?

Yes, from about £48,000, except between £100,000 and about £120,000. Vanguard’s fee is low and capped at £375 a year, but you can only hold Vanguard’s own funds and ETFs. Charges checked on both sites .

Updated

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The short answer

Find your situation

Vanguard charges one account fee across all your Vanguard accounts, based on the total invested.

  • Under £32,000Vanguard is cheaper£48 a year on Vanguard against £71.88 on ii Core. The referral brings ii's year one to £35.94. Close call ↓
  • £32,000 to ~£48,000Vanguard is cheaper0.15% stays below £71.88 until about £48,000. Close call ↓
  • ~£48,000 to £100,000ii is cheaperAt £100,000: £150 a year on Vanguard, £71.88 on ii Core. Move your ISA ↓
  • £100,000 to ~£120,000Vanguard is marginally cheaperii moves to Plus at £179.88; Vanguard's 0.15% stays below that until about £120,000. Close call ↓
  • Over ~£120,000ii is cheaperVanguard caps at £375 a year from £250,000; ii Plus is £179.88. Move your ISA ↓
  • You want non-Vanguard funds, shares or trustsiiVanguard only offers its own range; ii offers over 40,000 investments.

When Vanguard is only slightly cheaper

Under about £48,000, and between £100,000 and about £120,000, Vanguard's fee is lower by a couple of pounds a month. The bigger difference is choice: Vanguard's terms only let you buy Vanguard's own funds (a range of over 85), while ii's plans include over 40,000 UK and international investments, including shares, investment trusts and ETFs.

Sources, checked : Vanguard client terms · Vanguard pension transfers · ii.co.uk/about-us

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Three routes from Vanguard

Matched to £75,000 in funds, as set in the calculator below. Change it ↓

Stay with Vanguard

At £75,000 in funds: £113 a year at Vanguard, £41 more than ii.

  • Best whenUnder about £48,000, or £100,000 to about £120,000, and Vanguard’s own funds are all you want.
  • TimingThe referral has no published end date, so there’s no deadline to beat. Look again as your portfolio grows.
  • FeesVanguard charges £48 a year under £32,000, then 0.15% capped at £375, across all your Vanguard accounts. No charge to transfer out.
If it’s close, what to weigh ↑

Fits £75,000 in funds

Move your ISA to ii

At £75,000 in funds: £72 a year on ii Core, £35.94 in year one with the referral.

  • Best whenYour Vanguard ISA is worth £48,000 to £100,000 or more than about £120,000, or you want investments outside Vanguard’s range.
  • TimingOpen the ii ISA through the referral link first, then request the transfer from inside ii. According to ii, ISA transfers typically take up to four weeks for cash and six for investments, and longer if your current provider is slow.
  • EligibilityThe £5,000 must arrive within 12 months of opening; a transfer counts once it completes. Stay on Core or Plus, because upgrading to Premium ends the free months.
  • FeesVanguard doesn’t charge to transfer out; ii charges nothing to transfer in. Check your Vanguard funds are available on ii if you want an in-specie move. Vanguard works out its fee on what you leave there.
Open your ii ISA through the referral link

Move everything to ii

One ii plan fee covers your ISA, SIPP and Trading Account: £71.88 a year on Core up to £100,000 in total, £179.88 on Plus above.

  • WhyVanguard’s fee already covers all your Vanguard accounts, capped at £375. ii’s plan fee covers ISA, SIPP and Trading Account too, and stays flat as you grow.
  • EligibilityOpening a SIPP? The £5,000 must be paid or transferred into the pension itself, not another account.
  • Until 30 Nov 2026Moving £20,000 or more? Open your new ii accounts and instruct the transfers (or pay in) by 30 November for £100–£5,000 cashback, tiered on the total across your new SIPP, ISA and Trading Account (transfers must complete within a year). It’s separate from the referral’s 6 months with no account fee. ii says don’t rush a pension transfer to meet a deadline. Details
  • PensionsCheck for exit fees, and don’t give up guaranteed annuity rates, a lower protected pension age or employer contributions. ii’s own advice: “don’t rush any decision.”
Open through the referral link

Step by step: transfer checklist ↓ · when to transfer · Capital at risk.

Your numbers

ii vs Vanguard for your portfolio

Enter what you hold at Vanguard today. For trading costs and all four platforms side by side, use the Interactive Investor fee calculator.

Vanguard's fee doesn't depend on what you hold, since everything there is a Vanguard fund or ETF.

ii a year£72Core plan · year one with referral £35.94
Vanguard a year£113Account fee, self-managed
ii is £41 a year cheaper at £75,000That's £406 over 10 years at today's value, before the referral's six free months.Your routes from Vanguard ↑

For this mix, ii is cheaper than Vanguard £48,000–£100,000 and from £120,000.

Side by side

Annual account fee by portfolio size

Vanguard: £4 a month under £32,000, then 0.15% a year, capped at £375. Fund management costs of 0.06% to 0.79% come on top, as they do for any fund.

ii vs Vanguard account fees
PortfolioiiVanguardDifference
£10,000£72Core£48Vanguard cheaper by £24
£20,000£72Core£48Vanguard cheaper by £24
£30,000£72Core£48Vanguard cheaper by £24
£50,000£72Core£75ii cheaper by £3
£75,000£72Core£113ii cheaper by £41
£100,000£72Core£150ii cheaper by £78
£150,000£180Plus£225ii cheaper by £45
£250,000£180Plus£375ii cheaper by £195
£500,000£180Plus£375ii cheaper by £195
£1,000,000£180Plus£375ii cheaper by £195

Beyond the fee

Where each one wins

Where ii is better

  • Portfolios from ~£48,000 to £100,000, and above ~£120,000. The flat fee is lower.
  • Choice. Over 40,000 investments, including other managers' funds, shares and investment trusts.
  • Family. Plus includes five free family accounts and free Junior ISAs.

Where Vanguard is better

  • Portfolios under ~£48,000. £48 a year, then 0.15%.
  • No dealing charges on its funds. Switching between Vanguard funds is free.
  • One fee across accounts. An ISA and a pension share a single account fee.

Switching from Vanguard

Transfer checklist

Vanguard doesn't charge for transferring out, and ii doesn't charge to transfer in. According to ii, ISA transfers typically take up to four weeks for cash and six for investments, and longer if your current provider is slow.

  1. Open the matching ii account through the referral link

    ISA to ISA, SIPP to SIPP. Opening through the link is what applies the referral; it can't be added afterwards.

  2. Request the transfer from inside ii

    ii contacts Vanguard for you. If you want an in-specie move, check your Vanguard funds are available on ii first. An in-specie transfer moves holdings as they are; a cash transfer sells them first.

  3. Make sure £5,000 arrives within a year

    Transfers and deposits count only if they complete within 12 months of opening. If you're opening a SIPP, the £5,000 has to go into the pension.

  4. The six free months start

    Within 10 working days of qualifying. Stay on Core or Plus; upgrading to Premium ends them for good.

Moving a pension? Before transferring, check whether you'll be charged exit fees and make sure you won't lose valuable benefits, such as guaranteed annuity rates, a lower protected pension age or matching employer contributions. If you're unsure, speak to an authorised financial adviser.

Sources, checked : Vanguard fees · ii charges · ii referral terms.

Quick answers

ii vs Vanguard: common questions

Is Interactive Investor cheaper than Vanguard?

From about £48,000 to £100,000, and again from about £120,000. Vanguard charges £48 a year under £32,000, then 0.15% capped at £375. Between £100,000 and about £120,000, ii moves to Plus (£179.88) and Vanguard’s 0.15% is slightly cheaper. See your own number in the fee calculator.

Can I hold other providers’ funds or shares at Vanguard?

No. Vanguard’s terms only let you buy its own funds (a range of over 85); other investments have to be sold and moved as cash. ii offers over 40,000 UK and international investments, including shares, investment trusts and ETFs.

Does Vanguard charge to transfer out?

No. Vanguard doesn’t charge for transferring out, switching funds, withdrawing or closing your account, and ii doesn’t charge to transfer in.

Outgrown Vanguard? Open through the referral link first

Capital at risk. New ii customers only; add or transfer £5,000+ within 12 months. We may earn a reward if you sign up through this link. Tax treatment depends on individual circumstances and may change. Full terms and conditions

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