£250 cashback ENDS MIDNIGHT TONIGHT

chrishgt4

https://www.quidco.com/shepherds-friendly-stocks-shares-isa

ENDING MIDNIGHT TONIGHT 20/02/2018

I'm by no means an expert on these and working out the terms and conditions, but from what I can work out this is going to be up to £250 cashback on between £120 and £3600 of investment for 90 days.

It seems the rules are you have to commit to the monthly investment amount, and leave it in for 90 days from the date of the first payment.

So I work it out that going for the top level; you'd pay your first £900, 30 days later another £900. 30 days later another £900, and then 30 days later you would have to pay your final payment of £900 which would fall on the same day as you would qualify for the 90 days minimum investment period. You could immediately withdraw it at that point (or leave it in if you want) and should still qualify for your cashback.

The levels are:

£30 a month = £120 total investment = £100 cashback
£100 a month = £400 total investment = £160 cashback
£500 a month = £2000 total investment = £220 cashback
£900 a month = £3600 total investment = £250 cashback

Wizzbang

And you could lose all your money because this is a stock and shares ISA. Plus losing your yearly ISA allowance. You're a bit green!

Alexland

I am a fan of S&S ISAs and Cashback but my view is the downsides to this product far outweigh the cashback.

So you invest £3600 paying an initial 3% (£108) fee on your contributions and it is invested in their opaque 'with profits' (sounds good, but really not good) fund with an AMC of 1.5% and then they apply a Market Value Reduction to your early withdrawal which may have no relationship to actual market performance and be greater than the cashback and you have no comeback whatsoever.

Alex

ValiantSon

Alexland wrote: »

I am a fan of S&S ISAs and Cashback but my view is the downsides to this product far outweigh the cashback.

So you invest £3600 paying an initial 3% (£108) fee on your contributions and it is invested in their opaque 'with profits' (sounds good, but really not good) fund with an AMC of 1.5% and then they apply a Market Value Reduction to your early withdrawal which may have no relationship to actual market performance and be greater than the cashback and you have no comeback whatsoever.

Alex

Wow, that's a really poor offering!

I keep hearing about how lovely, and good, friendly societies are; and then I look at their products and can't square the circle.

jimjames

Wizzbang wrote: »

And you could lose all your money because this is a stock and shares ISA. Plus losing your yearly ISA allowance. You're a bit green!

You won't lose all your money from a with-profits fund unless the world falls in and you certainly wouldn't lose your allowance. Huge charges on friendly society products though so it's likely to outweigh the cashback. Maybe not just the OP that's green

Alexland

ValiantSon wrote: »

I keep hearing about how lovely, and good, friendly societies are; and then I look at their products and can't square the circle.

I guess historically the return has probably slightly beaten cash savings and for people who just want to see the smoothed result of small bonuses being applied to the account then it can be less stressful during the accumulation period - but then there's the stress at the end when you get either more or less than expected as everything you have seen along the way has been a nice little fiction to keep you happy adding more.

chrishgt4

Wizzbang wrote: »

And you could lose all your money because this is a stock and shares ISA. Plus losing your yearly ISA allowance. You're a bit green!

And you're a bit arrogant and condescending, aren't you.

dunstonh

I keep hearing about how lovely, and good, friendly societies are; and then I look at their products and can't square the circle.

We were issued a compliance bulletin a few years back warning that the friendly society savings plans could be considered a missale nowadays. The tax saving is a red herring (technically correct but the small amount of premium is never going to generate a CGT bill anyway and dividend allowance is more than enough) and the charges are typical of 1980s levels. This is why you now see so many friendly societies running direct offers. If the consumer buys direct, they cant complain the product was naff.

This ISA in this deal is damned expensive and uses an old fashioned investment style. Not worth the cashback as all they are doing is giving you back some of the money they have taken in charges.

Where a number of friendly societies do still have the upper hand is their Permanent Health insurance plans.