AMP Pearl Mini ISA Advice please

MCSTRAC

I recently contacted AMP Pearl and asked if I would incur any penalty if I transferred my existing Pearl mini ISA funds as they only pay 1%. They responded by saying that as I was within the first 5 years since starting the ISA i would incur penalties of 20% of the current balance. When i pointed out that I was not actually cashing it in but rather I wanted to transfer in its ISA form to another ISA accont i was advised that "You are effectively cashing in your ISA therefore you incur penalties", when I re-iterated that I was not actually cashing it in merely transferring , they said" Yes, you are transferring but we treat it as though you are cashing it in."

Can anyone advise whether this is correct or whether I have been given incorrect advice as a figure of 20% of a penalty seems rather large.

dunstonh

AMP havent owned Pearl for over 2 years now. AMP retreated back to Australia after destroying some of the biggest brand names in the industry.

Pearl are correct in that you are removing funds from them in the first 5 years and therefore can apply that step down penalty.

The Pearl ISA bonus account was actually a very good product. Cheap, open ended, tax free and great principle. Standard bonus rate which once added was yours to keep. However, there was an additional bonus that was linked to the higher equity content of the with profits fund. The additional bonus was not linked to legacy issues and directly based on the point you made the monthly contribution. ie. if the contribution was £83 per month, each payment had its own entry point. If the value of the underlying investments went up, an additional bonus was paid based on that entry point. If it went down, you didnt lose your money. After 5 years, the plan had no exit charges of any sort.

However, the problem was that Pearl launched it just before the stockmarket crash and the low strength of the Pearl With Profits fund after AMPs raid on it before they !!!!!!ed off meant that the standard bonus rate is now very low. Had it been issued by Norwich Union or Prudential, we would probably see it getting best buy awards. Such is fate.

So, in summary, you are stuck with it until the 5th anniversary of your original start date. Top ups do not get a new 5 year term but are attached to the original date.

MCSTRAC

Thanks dunstonh, is it possible for me to withdraw some or the vast majority of my funds from this ISA without incurring loss, therefore, leaving the ISA running with say, £5.00 in it?

dunstonh

No. The 50,40,30,20,10,0 is on the amount you withdraw/remove/transfer. You are basically stuck there until it hits nil charge.

On the upside, I have seen the additional bonuses starting to increase on these plans recently so whilst the 1% normal bonus rate is rubbish, the additional bonus rate could compensate.

Once you hit the 5th anniversary, you are free to transfer it to another stocks and shares ISA without using up any allowance and Pearl cannot touch you for a penny.