Jump Savings Plan (WITAN)

Exeter_Grecian

I am extremely disappointed to have received a letter from Witan informing me that my Savings Plan on behalf of my daughter will be subject from April 2012 to a fixed fee of £30 + VAT per Year.

This is not supportive of modest Investors, like myself, who have built up a small fund for a Child and stopped investing.

I think my only option is to transfer the Shares into my own name, possibly sell or transfer to another Investment.

Any suggestions would be gratefully received.

Many thanks, Exeter_Grecian
:mad:

xylophone

Perhaps you could consider transferring to a bare trust arrangement with another company - I think Hargreaves Lansdown offer a Trust arrangement.https://www.hl.co.uk/free-guides/investing-for-children2

You do not say whether this was a CTF arrangement or simply a bare trust with you as settlor and your child as beneficiary - remember tax treatment is different.

This article is a couple of years old but still informative. http://www.investorschronicle.co.uk/2011/11/11/your-money/the-problem-with-child-trust-funds-ww60RqGZbOHQx49G9C5vaL/article.html

See also http://www.direct.gov.uk/en/MoneyTax...es/DG_10014128
http://www.hmrc.gov.uk/tdsi/children.htm - and note what happens when a child turns 16.
http://www.hmrc.gov.uk/trusts/types/bare.htm

atush

I have a bare trust with Witan for my child and have received no such letter and no charge of 30 quid. Is your savings plan in an ISA?

xylophone

http://www.jumpsavings.com/newtermsandconditions

Exeter_Grecian

No, WITAN have stated that they are applying this change to bring the Plan into same conditions as their new Junior ISA. Thanks to all for such prompt responeses. WOW I'm very impressed as a newbie member.

Thrugelmir

Alternative fund to consider is the Foreign & Colonial Investment Trust.

No annual fees on F&C's savings plan.

http://www.fandc.com/new/IT/Default.aspx?id=78408

jimjames

As above, try F&C or Aberdeen. I hold both for my kids and neither charge an annual fee. I actually moved from Witan some years ago as I wasn't happy with their charges at the time for reinvestment. It might seem small but fixed £1.50 dealing plus stamp duty when other only charge stamp duty was a big dent in small dividend reinvestments.

atush

Still no workd from Witan about a charge on my 3 plans, and won't be paying it. Will cash them in first.

jimjames

xylophone wrote: »

http://www.jumpsavings.com/newtermsandconditions

Looking at this it may be neutral or little change for some people.

The charging structure will change to a fixed annual fee of £30 plus VAT with no other dealing charges.

If this means that no fees for monthly investment or dividend reinvestment then you may save £36 pa if you have have both trusts invested monthly (£1.50 monthly investment fee) and have to pay out £30. With a single trust per month you'd pay a little more but not as much as appears at first.

roybernard

I got my notification this morning. Quite a shock. I have separate bare trust savings plans for seven grandchildren. I will now be charged £30 on each plan. To date the annual dealing charges on each plan has been around £8. This new charge makes the plans unviable for those investing small amounts. As far as I can see only those investing more than £3000 per annum in each plan will see a saving.

atush

Still have received nothing?