The Royal Bank of Scotland has launched a new investment service to providing customers with a chance to invest their cash in different ways.
Customers will be able to invest their money either through one lump sum, a monthly contribution or an ISA transfer.
The new online investment service, Royal Bank Investment, will allow customers to put away as little as £50 on a self-select or Automated Advice basis, which launched yesterday.
The new online investment service will be able to be linked to a financial goal and can be track the performance online.
The service will offer users tailored advice to help customer’s reach their goal. The Automated Advice is designed for less confident customers needing some help with investing for the first time.
It asks customers about their goals financial situation and attitude to risk and procedure and depending on the results it produces recommendation on each unique situation
The service provides fast advice on investing spare income and savings for a report that will cost £10.
There are five types of funds available to invest in from a low risk to a high risk option.
Fund 1 – low risk –This is the lowest risk fund in the range with an emphasis towards low risk assets, such as bonds. The low risk fund invests at least 70% of its value in bonds.
Fund 2 – low to medium risk – As the risk increases, the amount invested in lower risk investments, such as bonds reduces. The low to medium risk fund invests at least 50% of its value in bonds.
Fund 3 – medium risk – The medium risk fund has an increasing exposure to higher risk investments, such as equities. The medium risk fund invests at least 45% of its value in equities.
Fund 4 – medium to high risk – As risk increases further, so does the exposure to equities. The medium to high risk fund invests at least 65% of its value in equities.
Fund 5 – high risk – This is the highest risk fund in the range with the greatest emphasis on higher risk assets, such as equities. The high risk fund invests at least 90% of its value in equities.
The platforms charges a maximum of 0.35% of the value of your investment each year to cover the cost of administration, while a maximum charge of 0.6% of the value of investment each year to cover the management of the investment.
Marcelino Castrillo, Managing Director of Personal & Premier Distribution, said: “At Royal Bank, we focus on meeting the ever changing needs of our customers.
“By offering a low minimum investment sum and a simple online service, we hope that Royal Bank Invest will encourage more of our customers to get investing to help them achieve their financial goals.”