Bank of Scotland share dealing review

Bank of Scotland has a share-dealing facility with ready-made portfolios and a DIY option.

Bank of Scotland has a long history of providing excellent financial services and it currently has over 2.8 million personal customers. It has an investments facility that lets you invest in ready-made portfolios or build a portfolio yourself using a range of different investment options. Find out about what account types Bank of Scotland has on offer and what you can invest in.

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.

What is Bank of Scotland share dealing?

Bank of Scotland has a share-dealing facility that lets you buy stocks and shares and invest in a range of ready-made portfolios. You need to already be a Bank of Scotland member and have access to online banking.

You can invest in both an ISA and general investment account with Bank of Scotland, and for anyone looking to save for retirement, you can save in a self-invested personal pension too.

What products does the Bank of Scotland offer?

Bank of Scotland provides a number of simple ways to help you start investing. It currently has six different account types on offer:

  • Share-dealing account
  • Stocks and shares ISA
  • ShareBuilder account
  • SIPP account
  • Investment account
  • Investment ISA

You can either invest into a managed fund that will invest on your behalf or decide which shares, funds, bonds, gilts or exchange traded funds (ETFs) to invest in yourself.

To help you make educated and reliable decisions, the bank also offers extensive market insights, price alerts and trading tools. It’ll also deal with all the administration, so you can spend longer choosing the best place to invest.

Features of Bank of Scotland share dealing

  • Choose where to invest yourself or pick a managed fund
  • ISA accounts available for both, so you save paying tax on your returns
  • Sell part or all of your investment without paying any additional fees
  • Use the Market Research Centre for all the latest news and tools needed to start making smart investments

Stocks and shares ISA

With the stocks and shares ISA, you can invest up to your annual ISA allowance without paying tax on your profits. The allowance for the 2021/2022 tax year is £20,000. This means that you can invest up to £20,000 each year without having to pay any tax on your profits.

You can choose your own stocks and shares with this account – there are thousands of shares, funds and exchange traded funds that you can choose between. If you have investments with another provider, you can transfer these to your Bank of Scotland share-dealing account.

You can start by investing £20 per month or investing a lump sum.

Share-dealing account

This account is Bank of Scotland’s general investment account. It lets you invest in the same things as the stocks and shares ISA, but you don’t get the tax benefits.

This means that you have to pay tax on any profits you make over £12,300 in each tax year.

People tend to choose this account if they’ve already used their ISA allowance for the year.

  • Trade online or over the phone
  • Choose to invest in shares, funds, bonds, gilts, investment trusts and ETFs in UK and international markets
  • Pay per trade for both UK and international shares
  • Use the Market Research Centre to get all the news and tools you’ll need to start making informed investments

Bank of Scotland ShareBuilder

This is an account for you if you’re looking to try out the stock market but haven’t got a lump sum to invest upfront.

  • Gradually build your investment portfolio through regular monthly payments from as little as £20 a month
  • Reduced cost of £2 per scheduled trade
  • Trade UK shares, investment trusts or ETFs
  • Personalise your account
  • You can only trade shares on the London Stock Exchange or AIM

Self-invested personal pension (SIPP)

A SIPP is a tax-efficient way to save for your retirement.

  • Access Bank of Scotland’s full range of investments, including shares, funds, bonds and exchange traded funds
  • As with all pensions, pay no capital gains tax on your profits
  • Receive tax relief on your contributions
  • Invest a lump sum or save regularly
  • Pay per trade for both UK and international shares
  • Transfer a pension from other providers for £60 per plan
  • 0.1% interest paid on cash in your account.
  • You can’t withdraw from your pension until you turn 55.
  • You can only contribute up to £40,000 in each tax year.

SIPP fees

  • Free to open – no percentage-based fees on your holdings
  • Quarterly fee of £22.50 if you have £50,000 or less in your account
  • Quarterly fee of £45 if you have more than £50,000 in your account
  • £9.50 dealing fee per trade

Bank of Scotland ready-made portfolios

You can invest in Bank of Scotland’s ready-made portfolios in the Investment ISA and Investment account.

These are three funds that Bank of Scotland’s professional fund managers maintain on your behalf. They pool money from investors then buy and hold assets. You can choose from three risk profiles: low, medium and high.

Here’s a breakdown of each portfolio and a little about how they’re made up:

With the Investment ISA, you can use your ISA allowance in each tax year, which is £20,000 for the 2021/2022 tax year. This means that you can invest up to £20,000 in the tax year without paying tax on your profits.

The Investment account is usually chosen by people that have already used their ISA allowance for the year. You’ll be liable to pay tax on any profits over £12,300 in each tax year.

Bank of Scotland share dealing fees

Admin fee£36 per year (includes an ISA, share dealing account and a ShareBuilder account)
Trading fee£9.50 per trade
Scheduled investments£2 per scheduled trade

How safe is Bank of Scotland share dealing?

The Bank of Scotland is fully regulated by the Financial Conduct Authority (FCA). It’s also covered by the Financial Services Compensation Scheme (FSCS), which means that your deposits are covered by up to £85,000 if Bank of Scotland were to go out of business.

Pros and cons of Bank of Scotland share dealing

Pros

  • Options for all types of investors
  • Suitable for both lump-sum and regular investments
  • Good add-on for existing Bank of Scotland customers

Cons

  • You have to be a Bank of Scotland customer to sign up
  • Small range of ready-made portfolios on offer

Our verdict: Is Bank of Scotland share dealing any good?

For existing Bank of Scotland customers, its share dealing function is a nice add on and can give you a chance to learn the ins and outs of share dealing and get started. It has a range of ready-made portfolios if you’re not sure about how it works but want to try it out. It also has a DIY option if you’re feeling confident and want to choose your own investments.

The main downside is that you need to already have a Bank of Scotland bank account in order to open the share dealing account. Once you’ve gone through the faff of opening a bank account, you might as well have compared other share-dealing accounts with lower fees.

Compare share-trading options

Table: sorted by promoted deals first
Name Product Price per trade Frequent trader rate Platform fees Brand description
eToro Free Stocks
£0
N/A
£0
Capital at risk. 0% commission but other fees may apply. The minimum deposit with eToro is $50.
IG Share Dealing
UK: £8
US: £10
EU: 0.1% (min €10)
UK: £3
US: £0
EU: 0.1% (min €10)
£0
IG is good for experienced traders, and offers learning resources for beginners, all with wide access to shares, ETFs and funds. Capital at risk.
Hargreaves Lansdown Fund and Share Account
£11.95
£5.95
£0
Hargreaves Lansdown is the UK's number one platform for private investors, with the depth of features you'd expect from an established platform. The minimum deposit with HL is £1. Capital at risk.
Freetrade
Finder Award
Freetrade
£0
N/A
£0
Claim your free share worth between £3 and £200. Capital at risk.
Degiro Share Dealing
UK: £1.75 + 0.014% (max £5)
US: €0
N/A
£0
Degiro is widely seen as one of the best low-cost share brokers, for people who are looking to trade regularly. The minimum deposit with Degiro is £0. Capital at risk.
interactive investor Trading Account
£7.99 (with one free trade per month)
£0
£9.99 per month
Interactive Investor offers everything most investors need. Its flat fees makes it pricey for small portfolios, but cheap for big ones. The minimum deposit with ii is £0. Capital at risk.
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Compare up to 4 providers

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.

We show offers we can track - that's not every product on the market...yet. Unless we've said otherwise, products are in no particular order. The terms "best", "top", "cheap" (and variations of these) aren't ratings, though we always explain what's great about a product when we highlight it. This is subject to our terms of use. When you make major financial decisions, consider getting independent financial advice. Always consider your own circumstances when you compare products so you get what's right for you.

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