Pension switching incentives

michaels

granta said:

Altior said:

I was going to go for the new Freetrade cashback offer, until I read this:

13. After the Award is made, if you seek to:

(a) close your Freetrade SIPP; or 

(b) make a transfer or withdrawal from your Freetrade SIPP which causes the value of your Freetrade SIPP to fall below the Relevant Value; and

(c) within 365 days of your transfer completing, we reserve the right to clawback the Award, to the extent permitted by applicable law. 

Currently I just have the basic account, so I would need to turn Plus on, which I understand is £119.88 annually. Whilst I could get the 'Award' (bonus) before the annual subscription ran out, it won't yet be 365 days after the transfer completing. Meaning I would need to subscribe to two years of Plus, otherwise they have the right to clawback the bonus

I think you would need to have Plus turned on anyway to access the SIPP?

Yeah but for the cashback offer you need plus annual rather than plus monthly.  No real drawdown route with freetrade either so can't move crystallised funds to them (for those who might be maxing out TFLS prior to the budget)

Altior

granta said:

Altior said:

I was going to go for the new Freetrade cashback offer, until I read this:

13. After the Award is made, if you seek to:

(a) close your Freetrade SIPP; or 

(b) make a transfer or withdrawal from your Freetrade SIPP which causes the value of your Freetrade SIPP to fall below the Relevant Value; and

(c) within 365 days of your transfer completing, we reserve the right to clawback the Award, to the extent permitted by applicable law. 

Currently I just have the basic account, so I would need to turn Plus on, which I understand is £119.88 annually. Whilst I could get the 'Award' (bonus) before the annual subscription ran out, it won't yet be 365 days after the transfer completing. Meaning I would need to subscribe to two years of Plus, otherwise they have the right to clawback the bonus

I think you would need to have Plus turned on anyway to access the SIPP?

Yes that's right, so the Plus sub lasts 365 days which I would need to turn on, so obviously impossible to complete a transfer on the same day as turning it on. So my reading of terms indicates that anyone not already subscribed to Plus would need to pay for two annual subs. I also assume the initial sub comes from funds outside of the SIPP, whereas I would rather they were deducted from my SIPP. 

Whether they would invoke clause 13(c) is a question I suppose, as they are only reserving the right to. But probably not worth the risk to find out. 

granta

Altior said:

granta said:

Altior said:

I was going to go for the new Freetrade cashback offer, until I read this:

13. After the Award is made, if you seek to:

(a) close your Freetrade SIPP; or 

(b) make a transfer or withdrawal from your Freetrade SIPP which causes the value of your Freetrade SIPP to fall below the Relevant Value; and

(c) within 365 days of your transfer completing, we reserve the right to clawback the Award, to the extent permitted by applicable law. 

Currently I just have the basic account, so I would need to turn Plus on, which I understand is £119.88 annually. Whilst I could get the 'Award' (bonus) before the annual subscription ran out, it won't yet be 365 days after the transfer completing. Meaning I would need to subscribe to two years of Plus, otherwise they have the right to clawback the bonus

I think you would need to have Plus turned on anyway to access the SIPP?

Yes that's right, so the Plus sub lasts 365 days which I would need to turn on, so obviously impossible to complete a transfer on the same day as turning it on. So my reading of terms indicates that anyone not already subscribed to Plus would need to pay for two annual subs. I also assume the initial sub comes from funds outside of the SIPP, whereas I would rather they were deducted from my SIPP. 

Whether they would invoke clause 13(c) is a question I suppose, as they are only reserving the right to. But probably not worth the risk to find out. 

Yes agree. Certainly this is the most clause-ridden cashback offer I've seen!

Altior

granta said:

Altior said:

granta said:

Altior said:

I was going to go for the new Freetrade cashback offer, until I read this:

13. After the Award is made, if you seek to:

(a) close your Freetrade SIPP; or 

(b) make a transfer or withdrawal from your Freetrade SIPP which causes the value of your Freetrade SIPP to fall below the Relevant Value; and

(c) within 365 days of your transfer completing, we reserve the right to clawback the Award, to the extent permitted by applicable law. 

Currently I just have the basic account, so I would need to turn Plus on, which I understand is £119.88 annually. Whilst I could get the 'Award' (bonus) before the annual subscription ran out, it won't yet be 365 days after the transfer completing. Meaning I would need to subscribe to two years of Plus, otherwise they have the right to clawback the bonus

I think you would need to have Plus turned on anyway to access the SIPP?

Yes that's right, so the Plus sub lasts 365 days which I would need to turn on, so obviously impossible to complete a transfer on the same day as turning it on. So my reading of terms indicates that anyone not already subscribed to Plus would need to pay for two annual subs. I also assume the initial sub comes from funds outside of the SIPP, whereas I would rather they were deducted from my SIPP. 

Whether they would invoke clause 13(c) is a question I suppose, as they are only reserving the right to. But probably not worth the risk to find out. 

Yes agree. Certainly this is the most clause-ridden cashback offer I've seen!

It appears to me to be a deliberate sneaky trap, snare the unwitting into needing to subscribe for two years, when on the surface it appears only one is required. I might still go for it, but two annual subs is a fair chip off the cashback. They should be more upfront. 

granta

Altior said:

granta said:

Altior said:

granta said:

Altior said:

I was going to go for the new Freetrade cashback offer, until I read this:

13. After the Award is made, if you seek to:

(a) close your Freetrade SIPP; or 

(b) make a transfer or withdrawal from your Freetrade SIPP which causes the value of your Freetrade SIPP to fall below the Relevant Value; and

(c) within 365 days of your transfer completing, we reserve the right to clawback the Award, to the extent permitted by applicable law. 

Currently I just have the basic account, so I would need to turn Plus on, which I understand is £119.88 annually. Whilst I could get the 'Award' (bonus) before the annual subscription ran out, it won't yet be 365 days after the transfer completing. Meaning I would need to subscribe to two years of Plus, otherwise they have the right to clawback the bonus

I think you would need to have Plus turned on anyway to access the SIPP?

Yes that's right, so the Plus sub lasts 365 days which I would need to turn on, so obviously impossible to complete a transfer on the same day as turning it on. So my reading of terms indicates that anyone not already subscribed to Plus would need to pay for two annual subs. I also assume the initial sub comes from funds outside of the SIPP, whereas I would rather they were deducted from my SIPP. 

Whether they would invoke clause 13(c) is a question I suppose, as they are only reserving the right to. But probably not worth the risk to find out. 

Yes agree. Certainly this is the most clause-ridden cashback offer I've seen!

It appears to me to be a deliberate sneaky trap, snare the unwitting into needing to subscribe for two years, when on the surface it appears only one is required. I might still go for it, but two annual subs is a fair chip off the cashback. They should be more upfront. 

When I first joined freetrade under a promotion, I too was concerned that I was locked in for 2 years. I've recently paid my second annual fee. But as it turns out, they have had several additional promotions that I have benefited from so the second year's fee has paid for itself. If I take up this current offer, I'll be committing to a third year.

I've only been transferring in the minimum amounts needed to gain the cashback, so I've been able to maximise use of my SIPP pot!

artyboy

granta said:

artyboy said:

I actually just transferred about £250k out of Freetrade into Fidelity for their offer. Which
means I'll need to move £350k back in to qualify for the current £1000 cashback offer - no big deal as I have funds free to move, but it does mean a bit more keeping track of things.

Not as though there are lot of other offers out there at the moment anyway...

Is it not a net transfer value of £50k in order to receive £1k cashback?

Indeed, I don't do maths that well on a Sunday. So 300k back in then.

Cant say as the tie in really bothers me, it's hardly expensive to maintain.

granta

artyboy said:

granta said:

artyboy said:

I actually just transferred about £250k out of Freetrade into Fidelity for their offer. Which
means I'll need to move £350k back in to qualify for the current £1000 cashback offer - no big deal as I have funds free to move, but it does mean a bit more keeping track of things.

Not as though there are lot of other offers out there at the moment anyway...

Is it not a net transfer value of £50k in order to receive £1k cashback?

Indeed, I don't do maths that well on a Sunday. So 300k back in then.

Cant say as the tie in really bothers me, it's hardly expensive to maintain.

The actual fee doesn't bother me as it's very cost effective, especially once cashback taken into account. I'm more bothered about being ties in more than necessary as that money could be used to earn cashback elsewhere!

artyboy

granta said:

artyboy said:

granta said:

artyboy said:

I actually just transferred about £250k out of Freetrade into Fidelity for their offer. Which
means I'll need to move £350k back in to qualify for the current £1000 cashback offer - no big deal as I have funds free to move, but it does mean a bit more keeping track of things.

Not as though there are lot of other offers out there at the moment anyway...

Is it not a net transfer value of £50k in order to receive £1k cashback?

Indeed, I don't do maths that well on a Sunday. So 300k back in then.

Cant say as the tie in really bothers me, it's hardly expensive to maintain.

The actual fee doesn't bother me as it's very cost effective, especially once cashback taken into account. I'm more bothered about being ties in more than necessary as that money could be used to earn cashback elsewhere!

Fair enough, I've got quite a bit to move around so I'm fortunate that it's less of an issue for me. Offers are not exactly coming thick and fast right now anyway...

ewaste

I gather with Freetrade that the annual Plus Membership fee can't be taken from the SIPP itself?

I'm considering moving a SIPP and ISA across to Freetrade to make best use of the incentives on offer. 

artyboy

ewaste said:

I gather with Freetrade that the annual Plus Membership fee can't be taken from the SIPP itself?

I'm considering moving a SIPP and ISA across to Freetrade to make best use of the incentives on offer. 

No, it comes out of my bank account (well, at least I've not yet found a way to pay it out of the SIPP...). Mind you, as I'll be getting £2500 in cashback, it's something I can live with!