ING Direct Living Super introduces new fees
ING Direct's Living Super account fees are changing..
From the beginning of next month, ING Direct will impose a new administration fee of $60 per annum for Living Super account holders, as well as a fee to cover the operational risk financial requirement (estimated to be between 0.03% - 0.14%) to help meet financial industry regulations.
These fees are in addition to the 0.5% administration fee charged within the smart, select and shares category. The ING Direct Living Super account present a range of investment options and these fees might change your outlook, and the respective value of different investment categories.
While fees are generally increasing, or applying where there were none previously, the share category fees may decrease depending on your investment. This category claims to let you take a more hands-on approach with real-time share trading and previously cost $300, now replaced by the $60 annual fee.
Those with larger investments may find their fees increase considerably and may want to consider alternative, competitive share trading platforms to keep trading cost-effectively.
Find the fee changes below, applicable from 1 June 2017.
|Category||Old fees||New fees|
|Administration fee (all investment categories)||Nil||$60 per month, plus 0.03% to 0.14% per annum|
|Investment fee (Smart category only)||Nil||0.25% of the Smart Category account balance|
|Administration fee (Share category only)||$300 p.a.||Replaced by $60 per month, 0.5% p.a., plus 0.03% to 0.14% per annum|
|Administration fee (Select category only)||0.5% p.a.||Additional $60 per month, plus 0.03% to 0.14% per annum|
This comes less than a year after ING Direct paid $5.4 million in compensation to its superannuation customers, after the Australian Securities and Investment Commission (ASIC) said customers may have been mislead regarding fees and and costs of the product. The regulator said the bank's marketing around no-fee and low-fee superannuation options failed to make clear that these fees could change.
Following this, ING Direct agreed its marketing could have potentially been misleading, and said it will no longer promote its Living Super product based on no-fees claims.