What’s the deal?
A £75 cash payment for switching individual savings accounts (Isas) to TD Waterhouse, the online stockbroker.
To receive the payment, transferred Isas must be worth £10,000 or more, and can be stocks and shares or cash accounts.
Transfers are into the broker’s no-fee stocks and shares Isa that can be used to invest in UK and international equities as well as funds.
Investors can qualify for more than one £75 payment if they transfer Isas from different managers that are each worth £10,000-plus. The offer is open to new customers and existing clients.
Transfer applications need to be received by August 31. The cash will be paid by cheque within five working days of the switch being completed.
Is this good?
The £75 is an additional incentive for switching to what is already one of the best-value Isas for share investors. Unusually among stockbrokers, TD Waterhouse does not charge Isa fees on accounts worth £3,600 or more – investors are subject only to commission when they deal, at standard rates of £12.50. For active share traders, the broker has a frequent trader tariff of £9.95.
The £75 also offsets any exit charges from other Isa providers.
Investors who could find the offer attractive include existing TD Waterhouse clients wanting to consolidate their tax-free portfolios, as well as savers with low-paying cash Isas that they want to convert into stocks and shares plans.
Are there any catches?
To qualify for the payment, transferred Isas must be worth at least £10,000. Exit charges from some brokers, particularly on sizeable portfolios, could be up to £200.
The offer is only for transfers of Isas – not sharedealing accounts. Also, while Isas are fee-free with TD Waterhouse, there is a quarterly “inactivity” fee of £10 plus VAT on dealing accounts with holdings totalling less than £5,000, where investors have not traded in the previous quarter.
What are the alternatives?
Selftrade, another online broker, will reimburse up to £100 of exit costs for investors transferring Isas and dealing accounts to its service. However, it has just introduced a £35 plus Vat annual fee.
Killik & Co, the advisory investment company, refunds all exit charges on incoming Isa transfers.
How do I find out more?
www.tdwaterhouse.co.uk
www.selftrade.co.uk
www.killik.com
