DIRECT INVESTMENTS PLAN FOR THE FUTURE WITH OUR SHARE DEALING SERVICES

PLAN FOR THE FUTURE WITH OUR

SHARE DEALING SERVICES

DIRECT

Contents

Introduction 1

Before you invest 2

How to buy and sell shares 5

Your Share Dealing Account 6

Maximise your tax benefits 8

Charges 9

Tools and support 13

1 Introduction

I want to kick start

my portfolio

Straightforward share dealing

Lloyds Bank Direct Investments is an easy-to-use share dealing service that lets you buy and sell shares online or by phone, and deal in the UK or international markets.

Whether you want to deal monthly, buy and sell shares regularly, or sell an existing share certificate, with our Share Dealing Account you can deal safely and securely.

2

I want to be sure it’s the right

time for me to invest

Things to consider

We provide an execution only service, which means we only carry out the instructions you give us. If you’re unsure whether or not to invest you should seek appropriate financial advice. There are a number of important considerations that you should think about before investing, including the following:

Cash for emergencies

Before introducing any risk to your money, it’s sensible to have some accessible cash as an emergency fund for any unforeseen events. Generally, it’s considered

appropriate to have at least three to six months’ worth of income available in a savings account. However, you should consider what level of cash reserve is appropriate for your own circumstances and whether you will need the money for something else in the short term or in case of an emergency. Once your money is invested you may not get back the full amount you invest as prices can fall as well as rise.

Sort out any debt

It’s important to ensure that any debts are under control before considering investments. Interest payments on debts, particularly short-term loans and credit cards or store cards, are generally much higher than the returns you’ll get from any investments, and large debt repayments may stop you reaching your financial goals.

Appropriate protection

Life Cover, Critical Illness Cover and Income Protection are areas you may want to address before investing, especially if you have a family or people who rely on you financially. Your work may offer these as benefits, but you should review the level of cover to ensure that you have adequate cover to suit your needs.

Before you invest

For help and advice on debt management visit www.moneyadviceservice.org.uk

There are lots of investment options available in the market. The right one for you will depend on a number of factors including your financial objectives, personal circumstances and how much you can afford to tie up in longer-term investments.

How long can you invest

your money?

This will narrow down the type of product that will be suitable for you. You should only consider investing your money if you’re prepared to do so over the longer term.

Could you afford to lose some or

all of the money you’ve invested?

•

You should only invest in a product with a level of risk that you’re happy with. The higher the risk, the higher the potential return, but also the higher the potential loss. There are no guarantees, so you’ll need to be prepared for the fact that, with any stock market-linked investment, values will fluctuate on a daily basis and you may get back less than you invested as prices can fall as well as rise.

•

It’s important that you see investments as something to consider in addition to savings, not as an alternative.

What is your attitude towards risk?

•

Consider how much risk you’re prepared to take with your money and you should only trade with money you can afford to lose.

•

When investing, consider creating a balanced portfolio of savings and different types of investments.

Diversification can help reduce your risk.

3 Before you invest

5

I want different

ways to deal

Choose your account and how you operate it

Choose the account that suits you

•

With our Share Dealing Account we take care of the administration and paperwork for you when you trade.

•

Our ISA is a tax-efficient version of our Share Dealing Account – you benefit from the same features and low commission rates for dealing while maximising your tax savings.

The value of any investment can go down as well as up and you may not get back the full amount you invest. Lloyds Bank Direct Investments offers an execution only service, i.e. we only carry out the instructions you give us – we do not provide advice on your investments. Buying and selling shares may not be for everyone. If you’re not sure, you should consult an independent financial adviser.

With Lloyds Bank Direct Investments you’re in control of your investments and how you choose to deal.

Online

You can access your account online 24 hours a day at lloydsbank.com/shares

By phone

For those times when you’d prefer to pick up the phone – you can call us on 0345 606 0560. Our opening hours are Monday to Friday, 8am–9.15pm and Saturdays, 9am–1pm.

Straightforward and secure

management of your account

Your account benefits

We hold your shares securely in a Share Dealing Account so there’s no need to send valuable share certificates through the post each time you deal. We take care of all the administration and paperwork for you, leaving you free to focus on selecting and planning your investments.

There’s no cost for transferring any

certificated holdings into your Share Dealing Account. Deal online or by phone and view your portfolio as often as you like.

Share Dealing Account benefits

•

You can access your account online or over the phone.

•

We take care of processing all dividends, corporate actions* and associated paperwork.

•

Settlement time is faster – proceeds from your sales are usually paid after two working days instead of 10 days for certificated dealing.

•

If you’re an online customer you can view all your holdings online. Telephone customers will receive all statements by post.

•

Competitive dealing commission charges and a six-monthly administration charge of £16.

Choose your investments

•

Stocks and shares on the London Stock Exchange, AIM and six markets in Europe and North America.

•

Unit trusts and Open-ended investment companies (OEICs) from leading providers, investment trusts** and exchange traded funds***.

•

UK government gilts and bonds.

6

Your Share Dealing Account

*A corporate action is any event that brings material change to a company and affects its stakeholders. **An investment trust is a form of collective investment, which is constituted as a Public Limited Company.

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Making the most

of my investments

Trade with a tax-efficient account

With our ISA you’ll benefit from the same features as our Share Dealing Account while maximising your tax benefits. You’ll also pay the same commission rates for dealing.

You can:

•

Open a stocks and shares ISA.

•

Transfer your existing stocks and shares or cash ISAs to Lloyds Bank Direct Investments and manage all your investments conveniently.

You’ll get a free Share

Dealing Account

We’ll automatically open a Share Dealing Account for you when you open an ISA with us, so that you can conveniently manage other investments alongside your ISA. You won’t pay the usual six-monthly fee for the Share Dealing Account and you’ll be able to view both your accounts under one account number.

Make the most of the tax benefits

•

No capital gains tax to pay on any profit made within the ISA.

•

Income from corporate bonds and gilts is completely tax free.

•

If you’re a higher rate or additional rate taxpayer you won’t pay any additional tax on the gross dividends from shares. You can only open one stocks and shares ISA per tax year.

The government could change the level, basis or rate of taxation or remove the favourable tax treatment of ISAs. The value of current tax relief depends on your individual circumstances.

5 April

Each tax year you can use your ISA allowance until

Maximise your tax benefits

How much will it cost

me to trade?

Share Dealing Accounts and ISAs

We charge a commission for each deal, whether done online or over the phone.

Online dealing commission – UK and international* shares

Deals per quarter Dealing Commission

1–12 £15

13 or more (Frequent Trader rate**) £11.50

Telephone dealing commission – UK shares

Deal value Dealing Commission

£0–1,000 £17.50

£1,001–2,000 £22.50

£2,001–4,000 £35

£4,001–10,000 £50

£10,001 + £75

Deals per quarter Dealing Commission

1–12 See table above

13 or more (Frequent Trader rate**) £16.50 flat rate regardless of deal value 9

Telephone dealing commission – international* shares

Deals per quarter Dealing Commission

1–12 £17.50

13 or more (Frequent Trader rate**) £16.50

*International trading

Foreign currency conversions are required to facilitate the settlement of international transactions. We adjust the exchange rate by 1.5% and keep the difference as our fee. The available exchange rate is based on the exchange rate provided by Digital Look. Indicative exchange rates are provided prior to trading, and the rate applicable to the individual trade is confirmed on the trade confirmation once the deal has been completed. **Frequent trading

Our standard dealing commission rates will apply for the first 12 trades placed across your Share Dealing Account or Share Dealing ISA, per calendar quarter (ending 31 March, 30 June, 30 September and 31 December). The Frequent Trader rate will apply to any additional deals you place in the same quarter. The rate applied will depend on whether the deal is placed online or by phone. Standard rates will resume at the beginning of the next quarter. The Frequent Trader rate does not apply to trades placed in OEICs, Unit Trusts or certificated sales.

Funds dealing commission – telephone and online dealing

Online £10 flat rate per deal

Phone £15 flat rate per deal

Online dealing commission – certificated sales

Deal value Dealing Commission

Any £27.50

Telephone dealing commission – certificated sales

Deal value Dealing Commission

£0–1,000 £27.50

£1,001–2,000 £32.50

£2,001–4,000 £47.50

£4,001–10,000 £62.50

£10,001 + £87.50 Charges

Administration charges

Account type Six-monthly account charge

Share Dealing Account £16*

Account type Monthly charge, payable every six months

ISA Standard 0.25% + VAT

Minimum £12.50 + VAT

Maximum £60 + VAT

*This charge is waived if you hold a Lloyds Bank Share Dealing ISA as well as a Lloyds Bank Share Dealing Account.

Closing your account

Account type Account charge

Share Dealing Account FREE

ISA The monthly administration charge will be based _{on your valuation until the account is closed.}

There may be additional charges for dealing, stock transfers out and rematerialisation (the process by which electronic holdings can be converted into physical certificates) as set out elsewhere in this charges information.

11 Charges

Additional charges

The following additional charges will apply if specific events occur in relation to your Lloyds Bank Share Dealing Account or Lloyds Bank Share Dealing ISA.

Service Charge

Dividend reinvestment 2%, maximum £15

Cash withdrawal by cheque £30†

Rematerialisation (issue paper certificate) £10

Stock transfers out (per holding) £10

CHAPS payments £20

Returned cheque/DD charge £20

Copy of consolidated tax certificate £18†

Duplicate contract note

(if six months after original) £12† Duplicate statement/valuation (per item) £12†

Request for replacement share certificate £30†

Debit interest Lloyds Bank base rate + 5%

Probate valuation Free

Distribution of assets Free

Lodging a Power of Attorney £30†

†All charges include VAT where applicable.

Premier and Private Banking customers qualify for reduced commission and administration charges. For full details of these charges please visit our website

lloydsbank.com/sharedealingcharges

ISA Charges

The following charges apply only to the Lloyds Bank Share Dealing ISA.

Service Charge

Voiding of ISA £25 + VAT

Repair of ISA £25 + VAT Charges

13

Tools to help with

my investments

Essential insight at your fingertips

Our tools and research can help you make the right investment decisions. They’re available online at

lloydsbankmarketwatch.com

You can:

•

View share prices, charts and performance tables.

•

Search for funds by fund manager, charges or performance.

•

View company news and top risers and fallers.

•

Create a virtual watchlist and set price alerts.

•

Read up on funds and fund managers.

•

Receive market news.

•

View company profiles and annual reports.

Past performance is not an indication of future performance, and the value of your investments and the income from them may go up as well as down – so you may not get back the full amount you invested.

FIND OUT MORE

Visit

lloydsbank.com/shares

or call 0345 606 0560.

Apply for an account today

£

Go to lloydsbank.com/shares

Õ

Call us on 0345 606 0560

If you’d like this in another

format such as large print,

Braille or audio please ask

in branch.

If you have a hearing or speech impairment and would prefer to use a Textphone, please feel free to call us on 0345 604 2543 (lines open 24 hours a day, seven days a week). If you are Deaf and prefer to use BSL then you can use the SignVideo service available on our website: lloydsbank.com/signvideo.asp

Important information

The Lloyds Bank Direct Investments Service is operated by Halifax Share Dealing Limited. Halifax Share Dealing Limited. Registered in England and Wales no. 3195646. Registered Office: Trinity Road, Halifax, West Yorkshire, HX1 2RG. Halifax Share Dealing Limited is authorised and regulated by the Financial Conduct Authority, 25 The North Colonnade, Canary Wharf, London, E14 5HS under registration number 183332. A Member of the London Stock Exchange and an HM Revenue & Customs Approved ISA Manager.

Lloyds Bank plc. Registered Office: 25 Gresham Street, London EC2V 7HN. Registered in England and Wales no. 2065. Calls may be monitored or recorded in case we need to check we have carried out your instructions correctly and to help improve our quality of service.

We are members of the Financial Services Compensation Scheme (FSCS) and covered by the Financial Ombudsman Service.

Information correct as at October 2015.