Hargreaves Lansdown’s new Vantage Service have gone live today with new, lower minimum investment amounts, which permit investors to start saving with smaller sums of money.
The minimum regular savings amount is cut to £25 from £50 with a new minimum lump sum of £100 not £500.
Danny Cox, Head of Financial Planning, Hargreaves Lansdown says: “The easier you make it for individuals to invest for their future, the more likely they are to do it. By lowering the minimum amounts needed to invest using the Vantage Service, we hope to encourage first time investors to start building up a nest-egg and improve their financial security.
“The most important part of a savings plan is to get it off the ground, even if the initial amount seems small. A pension investor can now start their retirement savings for just 66p a day, which adds up to £25 a month with tax relief added. The majority of people start by saving modest amounts, and over time, with occasional increases, these will really add up.”
The firm has made the following calculations.
Out of small acorns…
£25 gross (£20 net) saved into a pension over 40 years could build to £38,000 (5% annual growth).
£25 saved into a NISA or Junior ISA over 18 years could build to £8,730 (5% annual growth).