STERLING isa.help and advice please

edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
6 replies 6.8K views
smugbear2007smugbear2007 Forumite
51 Posts
edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
i have £2600 in the stocks and shares ISA provided by sterling/zurich. when i signed up i was earning silly money and didnt care when i heard the words 4.75%charges. i just wanted to stick some money ANYWHERE where i wouldnt spend it as my MINIISA was full.
i get the feeling this is a load of tosh and im being screwed as ive seen no return on my wedge?...just a hunch.
i have 3000 in my Mini isa with HSBC and 4000 in there online saver. i have a 1k under the bed
total 10600
i also can save 250month.
i am a total savings noob and need some guidance.where should i stick my money and is the sterling isa a rip off?

i would need access to a couple of grand just as security but the rest 2-3 years. thanks
when the tide goes out we shall see who has been swimming naked

Replies

  • EdInvestorEdInvestor
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    Oh dear. I think we've run across this one before. :(

    Sterling ISA ripoff charges
    Trying to keep it simple...;)
  • dunstonhdunstonh Forumite
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    Sterling ISAs have the ability to be set up with standard charges but do allow a second layer of charges if agreed. So, it would be wrong to assume that its being done on the high charge model. An initial charge of 4.75% would indicate a 3% commission being taken by the adviser. Not the double charging that Eds article suggests.

    I have used them a couple of times due to the death guarantee they have but only on the standard 1% basis.
    as ive seen no return on my wedge?...
    When did you start it? Last March-May time was a bad time to start. Anytime this year really hasnt been that great either.

    2-3 years is not suitable for investing like this. 5 should be your minimum.
    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.
  • dunstonh wrote: »
    Sterling ISAs have the ability to be set up with standard charges but do allow a second layer of charges if agreed. So, it would be wrong to assume that its being done on the high charge model. An initial charge of 4.75% would indicate a 3% commission being taken by the adviser. Not the double charging that Eds article suggests.

    I have used them a couple of times due to the death guarantee they have but only on the standard 1% basis.


    When did you start it? Last March-May time was a bad time to start. Anytime this year really hasnt been that great either.

    2-3 years is not suitable for investing like this. 5 should be your minimum.

    oops, i started it may 2006.:eek: putting in 250 a month, but i stopped the dd. i know my advisor got 750 commission.like i said at the time i wasnt too fussed as i just didnt want it in my current account and my mini allowance was full.
    it had an 80%protected profits thing and was spread, but apart from that i havnt a clue what its about. :rolleyes:

    anyway now i have took a pay cut to do a job i love im more careful with where i put my money. if i want to drag the whole lot out do i tell my advisor, write a letter or what? i am a total noob and i dont know an ISA from my elbow.
    when the tide goes out we shall see who has been swimming naked
  • dunstonhdunstonh Forumite
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    oops, i started it may 2006.

    Monthly contributions are never going to show big growth in early years. After 6 months you only had £1500 in there.
    i know my advisor got 750 commission.like i said at the time i wasnt too fussed

    You should have been. £750 on a regular contribution ISA is disgraceful. Although you stopping it would have seen the bulk of that clawed back. To give you an idea, the typical maximum commission an IFA earns on an ISA is 3% of each contribtuion. So, over 12 months they would get £90. The FSA average (FSA have details of all contracts processed and commissions taken and its published every 6 months) shows that IFAs take 1.8% on average. That would be £54. So, an average IFA would have been paid £54 compared to your adviser (who may of course been a tied rep of Zurich) who got £750.
    if i want to drag the whole lot out do i tell my advisor, write a letter or what?

    Go straight to Sterling and never speak to this adviser again.

    Alternatively, reconsider where and how its invested. Nothing wrong with ISA. That is good. What you currently have in there can be transferred to a lower cost ISA with a fund supermarket. The idea was right. The implementation was not.
    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.
  • cheers dunstonh, more help than a haynes manual my friend. i like the idea of the 80%protected profits that the sterling thing had.
    what is a fund supermarket? we should have a chat if you want to advise me i will go through you.
    1. protected profits is good if poss
    2. risk spread but interested in a few areas such as property funds that invest in the german commercial property market if i could allocate a certain % into something similar.but again i dont really understand cash and equities malarchy.
    3.planning ti buy a house so waiting maybe 3,4,5 years before i need my money out for a deposit.
    4.i like to see how my money is doing regularly if poss. ie internet access to see drops/falls..not vital but nice.
    5. i do like a bit of a gamble with a PORTION of my investment in high risk stuff but not all.

    does ths help you?

    and about the IFA who has screwed me. i used to sell cars
    dont worry my friend because i sold the guy a car from a main dealer and made 1500 for the dealership and 200 for myself so i guess we are even.
    when the tide goes out we shall see who has been swimming naked
  • i am planning on saving 200/250 month again btw
    when the tide goes out we shall see who has been swimming naked
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