I've been thinking about starting a UK Stocks & Shares based ISA. I am planning on using my Banking company to start the ISA with. I understand that they have a 2% annual maintenance charge for the ISA.
What does that mean? Does it mean any of the following?
- They send me a bill asking me to pay 2%?
- If that is the case, then 2% of what, the current value of the shares? 2% of the amount of money I have invested? or 2% of something else?
- They somehow reduce the value of the shares in the ISA by 2% to cover they fees
- If that is the case, how do they do that, do they sell 2% of the shares or something?
- Or do they get their 2% using some other method?
Just for clarification, I am thinking about starting a Stocks & Shares based ISA where I chose the shares myself.