Management charges on shares accounts can vary and can be more than 1.5% a year.
Accounts that invest in shares (that are not stakeholder accounts) do not have a maximum charge. For a stakeholder account the Government has made rules that mean a provider can charge no more than 1.5% management charges (although they can charge extra for the costs involved in buying or selling investments).
In addition, providers of shares accounts may charge other management and administration fees such as an initial charge. For example, an initial charge of 5% would have the effect of reducing a £500 initial Child Trust Fund (CTF) investment to £475 and a £100 per month contribution to £95. If your provider makes these charges you should consider putting the reduced amounts into the calculator to get a more accurate idea of what your investment might be worth.
