Double take over nest egg admin fees
SETTING up a nest egg for their grandchild’s future seemed so simple for a family that, once done, they thought little more about it.
But it all became fraught when confusion arose over the process around the stock and shares Junior Individual Savings Account (JISA) the Hammonds invested £1,000 in.
Unawares they say to them, the company running it sold some of the shares to cover the £130 handling fees that had accrued over several years and what the family should have paid.
After investor granddad Peter Hammond and his daughter Julie, the adult in charge of the account for daughter Mandy, found out what had occurred, it happened again.
This time the disinvestment was just before the business, Alliance Trust Savings (ATS), was sold to its owner Interactive Investor.
Feeling things should have been made clearer and fees not allowed to build up, the family complained both to Crusader and the Financial Ombudsman Service. “Although my daughter was the account’s
■
JISAs are often joint endeavours so keep track of statements and know exactly what is expected of you.
Parents looking to save in a JISA for their child, perhaps to fund education costs or help them get on the property ladder, will find the tax-free limit has risen to £9,000 for ‘guardian’, we’d set it up together. I thought she was paying the fees and she thought I was,” admits Peter. “Better alerts could have avoided this mess and us losing out.” Julie also moved addresses, but encountered problems registercurrent
2020/21, advises Rachel Springall of financial information group Moneyfacts.
JISAs turn into an adult ISA when the child turns 18. “But they can manage a JISA from 16 which helps them learn about saving,” she says.
“If savers are looking to open a fixed rate ISA,”
Springall adds, “they would be wise to consider fixed-rate bonds outside an ISA wrapper too.
“At present fixedrate ISAs pay less interest than bonds.”
Among JISA best buys both TSB and NS & I are currently offering 3.25 per cent, and Tesco 3.15 per cent.
● moneyfacts.co.uk ing her new details online. Commenting on the abrupt second disinvestment ATS told the family they were unable to notify them due to the sale to Interactive Investor the following month.
Crusader asked Interactive Investor to review the matter and as a goodwill gesture it has waived the Hammonds’ fees from the move in October to June.
If consumers have a complaint which spans the time a company has changed hands, they should first try the current owner and then the Financial Ombudsman.
It did find overall in ATS’s favour saying it did not consider the business had treated the family unfairly. They are considering an appeal.
The Hammonds’ names have been changed
●