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Isa investors could boost their pots of up to £2,000 if they transfer their Isa to Fidelity before the end of the tax year.
Fidelity has an Isa transfer cashback deal worth up to £2,000 for investors who transfer an Isa, pension or investment account to the platform before April 1, 2024.
Depending on how much an investor transfers, he can receive between €200 and €2,000 in cashback.
Transfer boost: Investors can boost their Isas by up to £2,100 when they switch to providers Freetrade or Fidelity
Hargreaves Lansdown and Interactive Investor both had great cashback deals worth up to £5,000 earlier this year, but these have now ended.
Meanwhile, Freetrade is also running a free share offer for investors who transfer an Isa or Sipp to the platform. Investors could make up to £2,100 from the deal.
How much cashback can you get with Fidelity’s deal?
Investors transferring an Isa worth between £25,000 and £49,999 can receive £200 cashback, while those transferring Isas worth £50,000 to £99,999 will receive £500. Investors who transfer £100,000 to £249,999 will receive £1,000 in cashback.
If you transfer an Isa worth £250,000 to £749,999 you will receive £1,250 cashback and those who transfer £750,000 to £999,999 will receive £1,500 cashback.
Transfers of £1 million or more receive the maximum cashback of £2,000.
The cash will be deposited directly into your Fidelity cash management account within 90 days after the offer ends on April 1, 2024.
If your Isa transfer has not been completed by then, Fidelity will pay the cashback within 90 days of completing your last eligible transfer.
| Transfer value | Cashback amount |
|---|---|
| £25,000 – £49,999 | £200 |
| £50,000 – £99,999 | £500 |
| £100,000 – £249,999 | £1,000 |
| £250,000 – £749,999 | £1,250 |
| £750,000 – £999,999 | £1,500 |
| £1m+ | £2,000 |
Freetrade’s free stock deal
Investors can earn up to £2,100 in free shares through investment app Freetrade* when transferring an Isa or Sipp to the platform before April 5.
The amount they get in free shares depends on the amount they transfer to a Freetrade Isa or Sipp.
The value starts at £100 in free shares for a transfer of £10,000, and goes up to £2,100 in free shares for a transfer of £500,000 or more.
Investors must deposit at least £10,000 into a Freetrade Isa or Sipp to take advantage of the offer.
The way it works is that Freetrade gives investors a free share, or shares, equal to the value of the reward. These are listed in the table below.
| Financing amount | Free stock value |
|---|---|
| £10,000 – £19,999 | £100 |
| £20,000 – £39,999 | £200 |
| £40,000 – £79,999 | £400 |
| £80,000 – £159,999 | £800 |
| £160,000 – £249,999 | £1,200 |
| £250,000 – £499,999 | £1,800 |
| £500,000+ | £2,100 |
The free shares are placed into the customer’s general investment account rather than an Isa or Sipp, as there are restrictions on crediting money or shares on tax papers.
Customers can sell the shares immediately and move the money into their Isa or Sipp if they wish.
New customers must download the Freetrade app and open an Isa or Sipp account with a Standard or Plus annual subscription before they can take advantage of the offer.
Investors will then need to top up their account or initiate a transfer of at least £10,000 to their Freetrade Isa or or Sipp on or before April 5, 2024.
If you make withdrawals or transfers that reduce the value of your Isa or Sipp transfer before Freetrade awards the share, the value of your free share will be affected. If it falls below €10,000, you will not receive a free share.
The free share will be credited to your general investment account within 90 days.
Is it worth transferring for a cashback deal?
As with any big decision, such as transferring an Isa or pension, it’s crucial that you do your research properly.
Take exit costs into account. If you want to leave or transfer your current pension, your current pension provider may charge you exit costs. Fidelity will cover up to £500 if your current provider charges an exit fee.
Fidelity does not charge any transfer fees if you decide to switch to another provider after switching to Fidelity. Free trade doesn’t do that either.
There is a caveat to Fidelity’s deal. If you don’t keep your investments in a Fidelity Isa for 18 months after transferring them and switching providers, the cashback paid may be withdrawn.
Also consider the costs when it comes to your investment platform.
When trading Fidelity shares you are charged a flat fee of £7.50, and these charges also apply to investment trusts and ETFs. There are no transaction costs associated with buying and selling funds.
There is a surcharge for holding investment funds of 0.35 percent up to £250,000 and 0.20 percent above, up to 0 percent above £1 million.
However, if you invest small amounts, the fee structure is slightly different.
Fidelity charges £7.50 per month (£90 per year) for portfolios up to £25,000, or the 0.35 per cent rate applies if you have a regular savings scheme.
Freetrade offers stock trading free of charge and offers a wide range of UK and US stocks. It has some ETFs and some investment trusts, but doesn’t come close to the reach of the larger platforms.
Freetrade’s Basic plan for a general investment account has no fees, while the Standard plan for those who want an Isa and a full range of shares costs a fee of £4.99 per month and the Plus account costs £9.99 per month, what investors need if they want it. a sip.
Some stocks, including many smaller companies, are only available on Freetrade Standard and higher plans.
The Standard plan gives customers 1 percent interest on up to £2,000 of cash, while the Plus plan gives them up to 5 percent interest on up to £4,000. A currency surcharge of 0.45 percent applies to foreign shares.
The annual charge for holding shares, trusts and ETFs is capped at £45.
Please note that it can take up to two months for the Isa transfer from your current provider to complete.
Once the transfer has begun, you will not be able to transfer, add to, or sell the investments you are moving until the process is complete.
If you need to transfer a large pension pot, Fidelity’s cashback deal looks attractive as you can get up to £2,000.
Freetrade’s deal offers the highest reward value of £2,100 in free shares for transfers of £500,000 or more. Although not actually cash, investors can sell the shares immediately and move the money into their Isa or Sipp.
This deal only applies to Isas and Sipps, while Fidelity gives you up to £2,000 cashback for transferring from a general investment account.
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