Opening a pension and then transferring immediately

OwnedByACat

I can get a cashback bonus if I transfer a pension. Is there a pension provider I could put £100 in and then immediately transfer? There'd have to be no exit fees. 

I already have accounts with PensionBee and Penfold but don't want to transfer those.

DRS1

Don't those cashback offers usually have tiers so the more you transfer the more cashback you get?  If so where do those tiers start - I imagine £100 might not even make it out of the starting gate. ii for example have a minimum of £10k.

QrizB

OwnedByACat said:

I can get a cashback bonus if I transfer a pension. Is there a pension provider I could put £100 in and then immediately transfer? There'd have to be no exit fees.

None of the common DIY platforms have exit fees, as far as I know. Bear in mind that it could be several weeks before your tax relief is credited.

More info on the cashback scheme would be helpful, as above. £100 is unlikely to earn you much.

OwnedByACat

It's Moneybox, offer for existing customers. The lowest tier is £20 cashback and minimum amount is £100. Which seems worth it, I could transfer out before fees mounted up.

squirrelpie

Why not transfer £100 from one of your existing pensions?

Marcon

OwnedByACat said:

I can get a cashback bonus if I transfer a pension. Is there a pension provider I could put £100 in and then immediately transfer? There'd have to be no exit fees. 

The FCA introduced a complete ban on charging exit fees for pensions set up on or after 31 March 2017.

OwnedByACat said:

It's Moneybox, offer for existing customers. The lowest tier is £20 cashback and minimum amount is £100. Which seems worth it, I could transfer out before fees mounted up.

Have you checked if there's a minimum retention period to qualify for cashback? There often is, which is pretty reasonable - providers don't want people swooping in for the cash back and then immediately swooping back out again!

Albermarle

Marcon said:

OwnedByACat said:

I can get a cashback bonus if I transfer a pension. Is there a pension provider I could put £100 in and then immediately transfer? There'd have to be no exit fees. 

The FCA introduced a complete ban on charging exit fees for pensions set up on or after 31 March 2017.

OwnedByACat said:

It's Moneybox, offer for existing customers. The lowest tier is £20 cashback and minimum amount is £100. Which seems worth it, I could transfer out before fees mounted up.

Have you checked if there's a minimum retention period to qualify for cashback? There often is, which is pretty reasonable - providers don't want people swooping in for the cash back and then immediately swooping back out again!

Yes for bigger value/bigger cashback transfers, typically you have to stay 12 or 18 months.
I think some even delay paying the cashback for months and then apply a retention period.

OwnedByACat

squirrelpie said:

Why not transfer £100 from one of your existing pensions?

I didn't realise you could do that. Can I do it from PensionBee or Penfold? 

The cashback is meant to be paid after 60 days. Looking at the fees, they're comparable to what I'm paying so could stick with it for a while anyway.

squirrelpie

OwnedByACat said:

squirrelpie said:

Why not transfer £100 from one of your existing pensions?

I didn't realise you could do that. Can I do it from PensionBee or Penfold?

I don't know, sorry. Maybe somebody else does otherwise you'd have to ask them about partial transfers..

artyboy

Marcon said:

OwnedByACat said:

I can get a cashback bonus if I transfer a pension. Is there a pension provider I could put £100 in and then immediately transfer? There'd have to be no exit fees. 

The FCA introduced a complete ban on charging exit fees for pensions set up on or after 31 March 2017.

OwnedByACat said:

It's Moneybox, offer for existing customers. The lowest tier is £20 cashback and minimum amount is £100. Which seems worth it, I could transfer out before fees mounted up.

Have you checked if there's a minimum retention period to qualify for cashback? There often is, which is pretty reasonable - providers don't want people swooping in for the cash back and then immediately swooping back out again!

Charles Stanley Direct are still charging exit fees...

https://assets-live.charles-stanley.co.uk/uploads/files/96.52.01-CSD-Rates-and-Charges-Nov24.pdf.pdf