People using Barclays Direct Investing will no longer pay a monthly customer fee, the bank has announced.
Barclays said its research indicates low fees and charges are the most important factor when choosing an investment service.
Barclays Direct Investing customers previously paid 0.25% on balances up to £200,000 and 0.05% above that level.
With the fee removed, someone with a £50,000 portfolio would save an annual charge of £125.
The bank said there is no fee for buying or selling funds with Barclays Direct Investing but an ongoing charge is levied by the fund manager, and the £6 fee to buy or sell investments remains unchanged.
A customer with £10,000 in shares who makes six trades over the course of a year would pay £36 under the new pricing, compared with £61 under the previous pricing, saving £25 following the removal of the customer fee.
Foreign exchange fees may also apply for trading international shares. There are no exit fees if a customer chooses to leave, Barclays said.
It said the move is part of its commitment to help close the UK’s “investment gap”.
Sasha Wiggins, chief executive of Barclays Private Bank and Wealth Management, said removing the customer fee will help to “make it more straightforward for people to take the next step and invest with confidence”.
Moves have been under way more widely aiming to boost an investment culture in the UK, with concerns some people are holding significant sums in cash which could grow more strongly over time if they were in investments.
However, the value of investments can go down as well as up and people may want to consider their risk appetite as well as when they may need to access the money.
Investments are often considered as an option for people who are comfortable to put their money away for several years, to allow time to smooth out fluctuations in markets.
Previous Financial Conduct Authority research has indicated about seven million adults hold more than £10,000 in cash savings and could be missing out on the benefits of investing.
People are often recommended to keep some easily accessible savings in cash for emergencies, but excess savings may dent people’s ability to achieve their long-term financial goals.
Changes were made from April 6 meaning some firms can offer targeted support to help people make better-informed decisions about what to do with their money, based on what they would recommend to those in similar circumstances.
Targeted support aims to fill the gap between people receiving general guidance and paying for individualised advice, enabling more people to make informed decisions.