Barclays is to combine its banking and investment management divisions into a new platform in an attempt to bridge the growing advice gap.
The combined service will be a low-cost online investment platform and look to rival Hargreaves Lansdown, the largest D2C investment platform in the UK.
The platform, called Barclays Direct Investing, will allow customers to manage savings, current accounts and investments in one place. It will also have a list of 50 funds which have achieved a certain level of performance, similar to the Hargreaves Lansdown Wealth 150 list.
Customer fees for holding funds will be 0.2% a year, while other investments will cost 0.1%. Online transaction costs will be £3 for funds and £6 for all other investments, while phone transactions will be £25 across all investments.
The minimum customer fee is £4, while the maximum fee is capped at £125 per annum. Regular investments will also carry a £1 fee, while all other activities and services are free. There is no minimum investment amount.
Existing Barclays Stockbrokers customers will be the first to be transferred to the service next year, followed by new customers from other banks.
The firm is targeting all investing backgrounds including less experienced investors in light of the 'advice gap' which grew after the introduction of the Retail Distribution Review (RDR) at the end of 2012.
Clare Francis, savings and investments director at Barclays, said: "Factors such as longer life expectancy, spiralling house prices and high university costs mean it is more important than ever for people to plan for their future financial security - yet we know many are not saving enough to meet these goals.
"There are a number of reasons for this, including a lack of awareness and understanding about financial products and feeling that investing in the stockmarket is complicated and risky.
"The new service has been designed as an easy-to-use service to help break down some of these barriers and give people the confidence to make smarter financial decisions, to achieve their financial goals."
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