We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

Cap on CTF annual charges

Hi, I need help understanding the charges being applied to my daughters CTF with Columbia Threadneedle.
I see the charges being applied to my daughter's CTF are:
Summary of Costs and Charges on your account - % of Investment 
Service Costs 0.08% 
Product Costs 2.06% 
Total Costs and Charges  2.14%

Which seems a little more than I expected. So looking for info on the CTF charges I found 
the Government docs show: Providers can make charges for management and other expenses but they are capped. This means that a CTF provider’s management charges cannot not exceed 1.5% per annum of the value of a CTF stakeholder investment account that they have managed for a whole year.

Can someone please help improve my understanding?

Thanks in advance.

Comments

  • dunstonh
    dunstonh Posts: 118,440 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Total Costs and Charges  2.14%
    Which seems a little more than I expected. 
    its about right for a Friendly Society plan.

    Can someone please help improve my understanding?
    Stakeholder CTFs are capped but non stakeholder CTFs are 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.
  • Thanks dunstonh and xylophone, thats very helpful.

    I have just printed off the transfer form for H&L ( JISA transfer not possible online).
Meet your Ambassadors

Categories

  • All Categories
  • 347.8K Banking & Borrowing
  • 251.9K Reduce Debt & Boost Income
  • 452.2K Spending & Discounts
  • 240.1K Work, Benefits & Business
  • 616.3K Mortgages, Homes & Bills
  • 175.4K Life & Family
  • 253.5K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 15.1K Coronavirus Support Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.