Interactive Investor SIPP?
|Retirement | Investment Choice
Asked by Dillon, submitted
09 August 2012.
Regarding low cost SIPPS Interactive Investor seems to come out as the best option. I have investigated this company online and it seems to be getting bad reviews recently. Can you comment on this company or may be you can review them?
Answered by Justin on 15 August 2012
I will try and carry out a full review over the next few weeks, but in essence it's a good value SIPP if you want to hold funds thanks to very generous rebates - as highlighted in our low cost SIPP comparison.
Where Interactive Investor seems to be getting bad press is the recent introduction of an £80 annual ISA wrapper fee. Investors with modest to large fund portfolios are likely to better off, as in exchange for the fee all trail commissions and platform fees are rebated. However, those holding shares, or fund portfolios less than around £15,000 may find themselves worse off following the change. I think it's this latter issue that's fuelling some backlash.
The annual SIPP charge of £120 & VAT would be an issue when only investing a few thousand pounds. Otherwise the overall package looks very competitive, although the £300 & VAT fee to transfer elsewhere is a rather nasty sting in the tail if you decide to move to another pension in future.
I'm afraid I can't comment on Interactive Investor's customer service, as I'm not a customer. If any readers can provide some feedback it'd be much appreciated if you could either post below or write a review.
Please note this answer does not constitute a recommendation or financial advice and should not be relied upon when making specific
investment or other financial decisions. You should always undertake your own research into whether a product or service is appropriate for your needs and, if
necessary, use a qualified professional adviser.
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