Clydesdale ISA charges

barginpleasure

My mother in law has a Stock and shares ISA. She has just realised that she is getting charged for moving a sum of money every month from her Clydesdale current account to her Clydesdale ISA.

Is this right?
If so what can she do to avoid this?

She has been miss advised as she didn’t even know about the mini £3K ISA with less risk and less interest she just has the stock and shares!!

She is retired and lives with her husband who is still working she doesn’t receive a pension for some reason. They have no mortgage on their owned house she has worked pre retirement but doesn’t know how she isn’t getting a pension.
They are trying to move money into her name to avoid tax on interest etc. I know ISA is tax free but current accounts!!

Any other advice on what she can do is appreciated.

dunstonh

She has been miss advised as she didn’t even know about the mini £3K ISA with less risk and less interest she just has the stock and shares!!

Why is that a mis-sale?

My mother in law has a Stock and shares ISA. She has just realised that she is getting charged for moving a sum of money every month from her Clydesdale current account to her Clydesdale ISA.

Is this right?

Yes it is. Especially if you buy from a bank.

If so what can she do to avoid this?

Dont buy from a bank and dont pay for someone to do the work but do it yourself.

barginpleasure

I feel she was miss advised as she wasn’t given the option when she signed up to the stocks and shares. Maybe this was a tactic for commission!!

She is going back on Thursday to get advice but it is from the Clydesdale again so she won’t get independent so I’m going to try and get her to one of them!!

She isn’t that knowledgeable when it comes to money, she knows how to spend, so just took the advice she was given.

dunstonh

I feel she was miss advised as she wasn’t given the option when she signed up to the stocks and shares.

It isnt a job of an investments adviser to give a choice between a savings product and an investment product. It is a job of the tied rep to recommend the best product suited to the need that they have available from their range.

Maybe this was a tactic for commission!!

The bank gets the money both ways so and the money earned on a small ISA is hardly worth the effort.

Bank financial advice is rarely great and usually expensive but that doesnt make it a mis-sale.

barginpleasure

dunstonh wrote: »

Bank financial advice is rarely great and usually expensive but that doesnt make it a mis-sale.

I'm afraid we'll have to agree and disagree on this I feel a consumer I should be given all the options and risks and in "this case" she was not thus rarely great. She is now going back to change it as she doesn't want the risk, just the saving!

dunstonh

I'm afraid we'll have to agree and disagree on this I feel a consumer I should be given all the options and risks and in "this case" she was not thus rarely great.

IFAs have about 30,000 products and options available. Is it feasible to be presented with 30,000 options?

barginpleasure

Where did I say she used an IFA?
Yes she bought from a bank!!

Like I said she knows nothing about saving just spending.

Not looking for 30,000 option just to be told this is high risk this is low risk!!!

barginpleasure

dunstonh wrote: »

Why is that a mis-sale?



Yes it is. Especially if you buy from a bank.



Dont buy from a bank and dont pay for someone to do the work but do it yourself.

Thanks I think!?!? I didnt know banks charged for internal account transfers as I just move the whole sum on the 6th of April and dont get charged (Bank of Scotland).

She trust her bank as she knows nothing about investing but as I have told her they will just advise on their products not the market. That why she cant do it herself as she knows nothing I have tried to get her to see an IFA but she trusts her bank!!!!

dunstonh

Where did I say she used an IFA?
Yes she bought from a bank!!

Like I said she knows nothing about saving just spending.

Not looking for 30,000 option just to be told this is high risk this is low risk!!!

I know she didnt use an IFA although the end result would probably have been similar, albeit with better funds and lower charges most likely. However, 30,000 options sounds better than 10-15 that the tied at the bank has

Not looking for 30,000 option just to be told this is high risk this is low risk!!!

The process is to find her risk profile and recommend a match to that. That may well include giving examples one above or one below but if she said she wanted to invest and was willing to take on some risk, even very low, then savings options would have been ruled out. Neither of us were present in that factfind and presentation so we cannot say what was or wasnt said.

I didnt know banks charged for internal account transfers as I just move the whole sum on the 6th of April and dont get charged (Bank of Scotland).

Thats for an internal transfer. Her ISA would not be an internal transfer and she was paying for the cost of advice.

She trust her bank as she knows nothing about investing but as I have told her they will just advise on their products not the market. That why she cant do it herself as she knows nothing I have tried to get her to see an IFA but she trusts her bank!!!!

You are right to put her off the bank but in reality, an IFA isnt what she needs either. IFAs are investment advisers. Not savings account advisers. If cash is all you want her to be in then there is no point seeing an adviser of any type.