Axa has announced an offer for investors wanting to transfer their cash Isas to a stocks and shares Isa with Axa Self Investor, but who may feel ‘locked-in’ by exit penalties from their existing provider.
Under the scheme, savers transferring to Axa Self Investor can claim back up to £750 per person against any interest penalties or exit fees incurred from the existing provider.
The offer is open to new and existing investors who are resident in the UK and are aged 18 or more.
It applies to transfers of at least £500 requested before 31 January 2017.
Claims must be made within 30 days of the transfer completion date.
Any transfers will need to remain with Axa Self Investor for a minimum of 12 months or investors will be liable to pay back any amount claimed.
Charges investors will pay include the Axa Self Investor account charge of 0.35 per cent a year if they have up to £250,000 invested across all their Axa Self Investor accounts, or 0.20 per cent a year if they have £250,000 or more invested, excluding any offers.
Also payable are ongoing fund manager charges, which vary between funds, and fund entry and exit charges where imposed by the fund manager (this charge only applies to seven funds).
Axa Self Investor does not levy any transaction charges for buying, selling or switching funds, and only offers ‘clean’ funds with no built-in commission to new investors.
Dean Aitchison, investment manager at KMD Private Wealth Management LLP in Stansted, said: “Investors need to be aware that switching from a cash Isa to a stocks and shares Isa carries high risks, so there needs to be the usual risk warnings looking at past perforrmance.
“Investors need to tread carefully.”
