So what does it all cost?
Our charges are explicit and are set at a level to reflect the amount of work involved. Everyone pays their fair share of the administration costs and you will see that the charges can become cost effective at a very low threshold of contribution input or fund size.
There are many different types of SIPPs in the market place which differ as to investment flexibility and also charging structure. If you, as many of you will, shop around for the best value, we recommend that you check out our "questions to ask".
SIPP flexibility
- Is income withdrawal available or will you have to transfer out or buy an annuity at retirement?
SIPP charges
- Does the SIPP administrator levy a transaction charge in addition to the dealing commission?
- Is there an annual administration charge? Some low cost SIPPs that promote a nil annual fee actually charge an annual fee (plus VAT) on cash and collective funds that do not generate commission?
- Does the SIPP administrator pass on the full discount available on unit trust and OEIC purchases?
- Are additional dealing charges levied for telephone dealing?
Establishment & administration
| Establishment |
Nil |
| Annual administration |
Nil |
| Single contribution |
Nil |
| Regular contribution |
Nil |
| Transfer in from another registered pension scheme |
£50 Waived under special offer # |
| Transfer out to another registered pension scheme* |
£50 |
Notes
- # As a special offer, the normal transfer fee of £50 will not apply for any transfer received between 01/10/2008 and 03/04/2009.
- All charges are subject to VAT in addition (Currently 17.5%).
- All charges are due to A J Bell Management Limited and will be deducted from your SIPP cash account.
- *If you wish to transfer out in-specie, then a charge of £10 per line of stock and £20 per unit trust/OEIC holding applies.
Dealing (internet and telephone)
| Shares/Gilts/Corporate Bonds |
Dealing commission |
| Deal Size |
Less than £500 |
£9.95 |
|
£500 - £2,000 |
£14.95 |
|
More than £2,000 |
0.75% (max £30) |
Unit Trust/OEIC
Discounts of up to 5.25% available on purchases
|
£20 flat |
Notes
- All initial commission and any specially negotiated discounts of initial charges on unit trusts and OEICs are passed on to your SIPP. See our Funds List for full details. A J Bell Management Limited may receive a rebate of a portion of the annual management charge from certain investment managers and keep this for its own account.
- You will receive a contract note every time you buy or sell an investment.
- There is no charge for the nominee service.
- Dealing charges apply to purchases and sales.
- Stamp duty of 0.5% applies on all purchases (not sales) of UK quoted shares (1% for shares quoted on the Irish Stock Exchange). There is no stamp duty on purchases (or sales) of unit trusts, open ended investment companies (OEICs), exchange traded funds (ETFs), warrants, government stock and fixed interest stock.
- There is a PTM (Panel on Takeovers and Mergers) levy of £1.00 for all deals in UK quoted shares over £10,000.
- Where foreign stocks, not listed on the London Stock Exchange, are bought/sold an additional handling fee of £25 for US/Euro stocks and £50 for Canadian stocks will apply.
Benefits
| Set up unsecured pension (USP), including paying any lump sum benefits |
£150 |
| Set up alternatively secured pension (ASP) at age 75 |
£150 |
| Pension payment |
£10 per instalment |
| USP and ASP Reviews |
£75 per review |
| Designation of additional funds to existing USP funds |
£75 |
| Payment of death benefits |
Time cost basis |
| Annuity purchase |
£75 |
| Insufficient funds e.g. to pay benefits or charges |
£25 |
Notes
- All charges are subject to VAT in addition (Currently 17.5%).
- All charges are due to A J Bell Management Limited and will be deducted from your SIPP cash account.
Interest Rates (Last updated on 06 November 2008)
Cash Balance | Interest Rates (Gross) | Interest Rates (AER) |
| £20,000.00 | | and greater | 2.00%
| 2.02%
|
| £5,000.00 | to | £19,999.99 | 1.25%
| 1.26%
|
| £1,000.00 | to | £4,999.99 | .75%
| .75%
|
| Less than | | £1,000.00 | .25%
| .25%
|
Notes
- Please note that all un-invested cash can only be held in your individual SIPP cash account with Bank of Scotland. If you wish to hold cash deposits in an account of your choice then the A J Bell Group also offers a fully flexible SIPP which may be more appropriate (www.ajbell.co.uk).
- There are no routine bank transaction charges and interest is paid to your account without any deduction of tax.
- Interest rates are subject to variation. Interest is credited quarterly.
- The interest rate for the applicable band applies to the entire balance.
- You will receive a regular statement detailing all of the transactions on your account.
- The Annual Equivalent Rate, AER, represents the annual rate effectively received by a customer if the interest at gross rate applied during a year remained in the account and itself earned interest. As every advert for a savings product where a rate is displayed will contain an AER, you will be able to compare more easily the return you can expect from your savings over time.
- A J Bell Management Limited receives commission payments from Bank of Scotland based on aggregate cash balances held across all SIPP cash accounts.