Interactive Investor

ii unveils new SIPP and ISA cashback offers

12th May 2022 09:36

Jemma Jackson from interactive investor

Two new cashback offers come at a time when many savers will be counting every single pound and penny.

interactive investor, the UK’s second-largest investment platform for private investors, has launched two new cashback offers that give qualifying customers a substantial cashback when they transfer an ISA or SIPP to ii by 30 June 2022. Terms and conditions apply.

The first of these offers entitles new customers to £100 cashback if they transfer an ISA with a value of more than £10,000.

The second offer is not restricted to new customers alone – both new and existing customers transferring a SIPP to ii could get up to £2,000 cashback, depending on the size of their respective pension pots (see SIPP table below).

These cashback offers come after a range of innovations from ii, including its new standalone low-cost SIPP, Pension Builder, which is outstanding value at just £12.99 per month.

Moira O’Neill, Head of Personal Finance, interactive investor, says: “These new cashback offers come at a time when many savers will be counting every single pound and penny. We also launch them at a time when eking out a return from cash is still extremely difficult, even after three interest rate rises from the Bank of England since the start of the year.

“Our offer is also backed up by a great value proposition that can save SIPP and ISA investors many thousands of pounds in the long run. Over a lifetime of investing, the compounding effect of lower fees can mean the difference between a frugal and a comfortable retirement.

“Our flat fee is fantastic value for those with larger pot sizes, with a monthly subscription that is modern, transparent and helps people keep track of their investment platform fees. Our new £12.99 Pension Builder is outstanding value, and our ISA comes with a free trading account, free Junior ISA for kids, and a free trade every month – all for £9.99 per month.

“Underpinning all our products is free regular investing for funds, investment trusts and popular UK shares. The ability to make regular monthly contributions for free, potentially benefiting from pound-cost averaging, is particularly useful in volatile markets such as these.”

ISA cashback table (new customers only)

Transfer Value

Cashback

£10,000+

£100

SIPP cashback table (new and existing customers)

Transfer Value

Cashback

£10,000-£24,999.99

£100

£25,000- £99,999.99

£200

£100,000- £999,999.99

£500

£1,000,000- £1,999,999.99

£1,000

£2,000,000+

£2,000

Notes to editors

To view T&C’s, please visit ii’s Cashback offers page here: https://www.ii.co.uk/special-offers/cashback

Further information about Pension Builder and Flat Fee Pricing

interactive investor Pension Builder customers pay a flat £12.99 per month regardless of the size or composition of their investment.

Assuming a pension portfolio split 50/50 between funds and equities in a £100,000 pension pot, Hargreaves Lansdown pension customers would pay £36.92 per month; £19.83 with Fidelity Personal Investing and £23.42 with AJ Bell YouInvest. As the table below shows, as pot sizes increase, so too do the charges. Investors with a £250,000 pension pot are paying £65 per month in charges with ii’s largest competitor.

The examples above are based on 50/50 funds and direct equities, with one regular fund investment, and one regular share investment each month, reflecting the fact that the average interactive investor customer has a mix of each in their portfolio. The table does not include fund charges, and is platform costs only.

However, assuming 100% funds, it is interesting to see how Vanguard compares. Vanguard equates to £6.25 per month for a £50,000 pot and £12.50 per month for a £100,000 pot. From £104,000, interactive investor become cheaper (assuming only regular investments), with Vanguard’s costs rising to £18.75 for a £150,000 pot, and rising to £25 per month for a £200,000 pot and £31.25 for a £250,000 pot.

Flat fees innovation

In 2019 interactive investor introduced its innovative monthly subscription fee pricing. In 2020, ii introduced free monthly investing for funds, investment trusts, ETFs, and popular UK shares and scrapped the £10 per month income drawdown fee on ii’s pension, along with a host of other pension fees.

Last year, ii launched Friends and Family, allowing our customers to gift a free ii subscription to up to 5 people for just £5 per month. It is free for customers in its premium Super 60 price plan.

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