Interactive Investor have launched a new SIPP cashback offer for those looking to switch SIPP accounts, but is it really value for money?
What is the Interactive Investor SIPP switching offer?
If you transfer your SIPP to II you’ll receive up to £500 cashback and no SIPP fee for six months. All you’ll pay is a flat fee of £9.99 could save an additional £60. They claim that over the course of 30 years you could save £97,000, based on their analysis of fees charged by other major providers.
How does it the SIPP offer work?
In order to transfer, you will need your National Insurance Number and details of which pensions you want to move. You can then open an account and start the transfer. Once completed, they will withhold SIPP fees for the first six months and pay cashback based on the amount you transfer. The more you transfer, the more you will receive up to a maximum of £500.
Pros and cons of the SIPP account switching offers
Like any switching offer you need consider the full picture. On the one hand, you benefit from a short-term cash injection, as well as an attractive offer of no SIPP fees for a period of time.
On the other the details of the cashback offer may vary depending on the terms. For example, to receive the full amount you may have to transfer a considerable amount of money. Depending on the level of your pension the true amount of cash back you get could be much less than you expect.
Providers also claw back cash in the form of fees elsewhere in the process, so you could end up paying for your own cashback offer.
How does it compare to other SIPP switching offers?
The offer looks good, but it’s just one offer in a packed field. As our guide of the latest cashback offers shows, it’s up against a £500 cashback offer from AJ Bell with £35 paid for each type of investment transferred over and will pay up to £100 worth of exit fees.
Fidelity’s is more modest. It offers cashback of £25 for each off your investment accounts. If you transferred a SIPP, general investing account and an ISA you’d benefit to the tune of 75 quid.
Interactive Investor’s SIPP is pretty competitive compared to what’s out there. However, as always in these things you should look closely at the details of the full deal before making a decision.
For more information on SIPP (self invested personal pensions) read our guide on how to invest in a SIPP account.
Tom Cropper has been writing for us since 2015. Tom is a financial journalist and his work has appeared in titles such as the Guardian, Euromoney and many others.