Save more for your retirement and pay less fees with TD Waterhouse

TD Waterhouse, the award winning online broker, has introduced another enhancement to its investment pricing following its recent introduction of zero fees on ISAs. With immediate effect, the annual administration fee on the TD Waterhouse Self Invested Personal Pensions (SIPPs) has been reduced, giving investors the potential to save up to £300 a year in fees.

The new fee will be charged bi-annually each June and December at 0.25% of the value of the TD Waterhouse SIPP, subject to a minimum of £40 (reduced from £50) and maximum of £100 (reduced from £250) during each charging period. This equates to a total annual fee of 0.5% of the fund (minimum £80 and maximum £200).

For example, in 2008 the fee will be applied based on the value of the fund on 2 June and 1 December with a maximum fee of £100 applied in each period. During the course of the year this could result in a total fee payable of up to £200 (reduced from £500) and a potential saving of up to £300 in fees. As an ongoing pricing change the new fees will remain indefinitely and apply to both new and existing investors.

In addition to this, TD Waterhouse is currently waiving the initial set up fee of £80 on new SIPPs until further notice, and because TD Waterhouse use Capita as the SIPP trustee, all fees are exempt from VAT, ensuring more of the investor’s money goes towards funding his or her retirement than paying for the fund itself.

Angus Rigby, Chief Executive Officer of TD Waterhouse UK comments,“SIPPs provide all the tax advantages of a traditional pension scheme and puts the investor in control of where, how and when their savings for retirement are invested. Investment options can include UK and International Equities, Gilts and Bonds, Investment Trusts, Unit Trusts and REITs - all of which are available through the TD Waterhouse SIPP.

“Although funds cannot be drawdown until the investor is 55, the freedom of choice and reduced administration costs available certainly make SIPPs a worthwhile investment choice to both novices and seasoned investors alike1. This is reflected in our new pricing structure and available indefinitely - not just as a one off offer.”

The new SIPP rates perfectly complement TD Waterhouse’s recent introduction of zero fees on ISAs and PEPs. Through these changes, any Trading ISA or PEP account held with TD Waterhouse that has a valuation of £3,600 or more is no longer charged an annual administration fee (ISAs valued up to £3,599.99 will pay a fee of £30 plus VAT). This also applies to ISAs and PEPs transferred in.

Rigby continues “According to our 2007 Investor Confidence index, ISAs are growing in popularity across the board, with 67% of British investors holding cash ISAs and 48% of investors holding stocks and shares ISAs. With our zero administration fee on ISAs and the forthcoming regulatory changes, now is the perfect time for customers to review their ISAs in order to get the best possible return from their investments.”

New regulatory changes for ISAs will come into effect from 6 April this year and a key part of these changes will affect PEPs, which will cease to exist after being around for 20 years as they automatically become Stocks and Shares ISAs. In addition, holders of Cash ISAs will be able to convert to Stocks and Shares ISAs to gain access to the highs and lows of the stock market.

Customers looking for more information about online trading or longer-term investment opportunities should log onto tdwaterhouse.co.uk.