£110 quidco from L&G ISA

edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
60 replies 8.1K views
fybarfybar Forumite
84 Posts
edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
Quidco are paying £110 cashback for anyone who opens a new L&G ISA.
Looks like you can open a cash ISA for £50 a month regular investment. Seems like a good deal to me but I guess there must be a catch> Can anyone enlighten me?

http://www.quidco.com/legal-general-isas/

J
«13456

Replies

  • tom188tom188 Forumite
    2.3K Posts
    You cant have a cash isa with them, they have a cash fund (not deposit account) that is part of a maxi isa, the products from L&G are all investments.

    It is not generally a good idea to buy investments on the strength of introductory deals as choosing an unsuitable product can cost one dear in the long run relative to the most suitable.
  • dunstonhdunstonh Forumite
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    L&G ISAs are single provider and they only have a couple of decent funds. You can make/lose more than £110 in a day with a £7k investment so it would be short sighted to make an investment based on a upfront incentive.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • fybarfybar Forumite
    84 Posts
    Thanks for the swift replies. All I was thinking was that I could open a MAXI ISA but nly deposit funds in the Cash Fund element. I could regulalry invest for up to a year and than bail out. Ok, their cash fund has only historically acheived 3-4% pa but add £110 to that and that's close on a 20% return. seems to good to be true???
  • masonicmasonic Forumite
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    fybar wrote: »
    Thanks for the swift replies. All I was thinking was that I could open a MAXI ISA but nly deposit funds in the Cash Fund element. I could regulalry invest for up to a year and than bail out. Ok, their cash fund has only historically acheived 3-4% pa but add £110 to that and that's close on a 20% return. seems to good to be true???
    Say you open an account an drip-feed £50 in a month. Assuming an interest rate of 4%, you'll end up with £13 interest plus £110 cashback, so £123 in total. However, you'll not be able to subscribe to a cash ISA elsewhere, potentially losing out on years of tax free interest.
  • I've been looking into this and am considering opening a maxi cash ISA with a £500 lump sum deposit. I would then take the £110 cashback and leave this money in there for a year, after which I would close the account (there is no exit fee).

    As this is a maxi ISA, could I then still open a mini cash ISA this year with another company, such as Egg? I would then reinvest the £110 in this mini cash ISA along with regular deposits.

    I won't be investing anywhere near enough to have to worry about the fact that I couldn't get a cash ISA anywhere so this isn't a consideration for me.

    How does this sound to people? Any drawbacks? Next year, I could simply open another maxi with L&G and take advantage of further cashbacks.

    EDIT: OK, just realised I can't get a mini and maxi ISA in the same year. However, investing £500 for the year in the L&G maxi still seems a great deal. I would close at the end of the year and then get another one next year. Anything wrong with that?
  • masonicmasonic Forumite
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    midnightz wrote: »
    EDIT: OK, just realised I can't get a mini and maxi ISA in the same year. However, investing £500 for the year in the L&G maxi still seems a great deal. I would close at the end of the year and then get another one next year. Anything wrong with that?
    As long as you don't have savings outside of an ISA that you would otherwise have put into one, then you wouldn't lose out. The difference between holding money in an ISA vs. a normal savings account can add up to a lot of money over the years.

    If you are saving enough that getting this account means you would not be able to get all of your cash savings into an ISA for some time, you might lose more than the £110 in tax over the years. For example, the basic rate tax you would pay on interest from £3000 held in a 5% savings account would total £122 after just 4 years.
  • MilarkyMilarky Forumite
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    What are the conditions on obtaining the cashback?

    You seem to be able to open a mini stock and shares ISA with L&G, so the offer appears to open to anyone who has only opened a cash ISA during this year..

    There is no reference to how long you need to hold these investments but the minimum amounts seem to be either £50 per month or £500 lump sum and a year seems long enough to allay any 'suspicion'. I would say that the £50 per month looks better from the risk point of view since the average amount invested during the year is only around £300 - i.e that's the 'interest' foregone for £110 and any return is the market average on £300

    I am surprised that dunstonh does not see that as a very well-geared proposition for someone who isn't looking to pure investment - or has the where-with-all to fully fund a maxi ISA? If you weren't going to invest anyway this year then it is a toe in the water at least...

    We really need to find out if there are any strings intended by "a genuine new account" - but I suspect (and D might know) that L&G are just spending £X per customer this month - and the cashback is without additional strings..
    .....under construction....
  • Jennifer_JaneJennifer_Jane Forumite
    3.2K Posts
    fybar wrote: »
    Quidco are paying £110 cashback for anyone who opens a new L&G ISA.
    Looks like you can open a cash ISA for £50 a month regular investment. Seems like a good deal to me but I guess there must be a catch> Can anyone enlighten me?

    http://www.quidco.com/legal-general-isas/

    J


    Thanks for alerting me to this, I agree with you that it's an excellent idea, as I wasn't going to do an ISA this year anyway (paying off house mortgage is a priority).

    I wondered if you had been able to proceed with your application? I was going along fine, having tried to go for a £50 (or £500) maxi ISA using a cash fund. The application refused to complete saying that you need to use another fund as well as the cash fund. I then tried to invest in a mini ISA, but the fund doesn't seem to offer that! Very frustrating.

    I didn't want to go into an equity fund with the buy/sell rate of 5% and attendant risk, would the cash fund also have that buy/sell rate, does anyone know, please? I had assumed not?? But anyway, the purpose would be to get the cashback!

    Would be grateful for any help.

    Thanks
    Jen
  • notatrollnotatroll Forumite
    53 Posts
    Hi,
    Can someone knowledgeable please recommend (no liability) a best trust fund for investing (£500 only for cashback). Also once the cashback is received, can I cash it off L&G or need to transfer to another provider first? Thanks.

    • European Index Trust (R) (Acc)
    • European Index Trust (R) (Dis)
    • Global 100 Index Trust (R) (Acc)
    • Global 100 Index Trust (R) (Dis)
    • Global Health/Pharm Index Trust (R) (Acc)
    • Global Health/Pharm Index Trust (R) (Dis)
    • Global Technology Index Trust (R) (Acc)
    • Japan Index Trust (R) (Acc)
    • Japan Index Trust (R) (Dis)
    • Pacific Index Trust (R) (Acc)
    • Pacific Index Trust (R) (Dis)
    • UK 100 Index Trust (R) (Dis)
    • UK 100 Index Trust (R) (Acc)
    • UK Index Trust (R) (Acc)
    • UK Index Trust (R) (Dis)
    • US Index Trust (R) (Dis)
    • US Index Trust (R) (Acc)
    Income Funds
    • Fixed Interest Trust (R) (Acc)
    • Fixed Interest Trust (R) (Dis)
    • High Income Trust (R) (Acc)
    • High Income Trust (R) (Dis)
    • Managed Income Trust (R) (Acc)
    • Managed Income Trust (R) (Dis)
    • Managed Monthly Income Trust (R) (Acc)
    • Managed Monthly Income Trust (R) (Dis)
    Actively Managed Funds
    • Equity Trust (R) (Acc)
    • Equity Trust (R) (Dis)
    • European Trust (R) (Acc)
    • European Trust (R) (Dis)
    • Far Eastern Trust (R) (Acc)
    • Far Eastern Trust (R) (Dis)
    • Global Growth Trust (R) (Acc)
    • Global Growth Trust (R) (Dis)
    • Growth Trust (R) (Acc)
    • Growth Trust (R) (Dis)
    • Japanese Trust (R) (Acc)
    • North American Trust (R) (Acc)
    • North American Trust (R) (Dis)
    • Pacific Growth Trust (R) (Acc)
    • Pacific Growth Trust (R) (Dis)
    • UK Active Opportunities Trust (R) (Acc)
    • UK Active Opportunities Trust (R) (Dis)
    • UK Property Trust (R) (Acc)
    • UK Property Trust (R) (Dis)
    • UK Smaller Companies Trust (R) (Acc)
    • UK Smaller Companies Trust (R) (Dis)
    • Worldwide Trust (R) (Acc)
    • Worldwide Trust (R) (Dis)
  • Jennifer_JaneJennifer_Jane Forumite
    3.2K Posts
    The cashback is from Quidco, so you would get that in the usual way (does that answer the question?).

    Re the list, I was hoping to do something low risk eg Cash, but the system wouldn't allow it. So I hope others will be able to offer some thoughts (I know, advice not allowed). I was concerned that going in with this, for these funds they have to increase by 5% to bring you back to breakeven, then something on top (opportunity cost versus putting the money in savings), in order for the cashback to be pure profit.

    Would love some ideas from anyone, please?

    JJ
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