Scottish Friendly ISA

[Shnozz]

Am I missing something here....just logge don to quidco for the first time in a while and up popped an offer to start a money builder ISA with Scottish Friendly and get a £200 Quidco referral bonus. Given you can start the ISA from £50 a month that means over a year I get back £800 for a £600 investment (assuming no fund growth either).

The bonus is only paid when your fund has accumulated enough to cover it but I can handle a 4 month wait.

Now I might have not read the small print but what am I missing?! I appreciate its not vast sums of money but considering how wild everyone went for the 1.5% interest on offer from Goldmans this seems easy money?

[JulianPH]

It look as though you can also pay in a £200 lump sum, receive £200 cash back, then after 60 days withdraw your £200 lump sum (at what ever value it has at this point).

Not exactly sensible long term investing, but it does appear to be a silly offer to give you free cash.

Obviously read the small print though!

[swatches]

£50 exit fee applies within the first 5 years

Topcashback are offering £210 cashback on similar terms.

[mfmman]

You can only put money into one cash ISA in a financial year, so it might ruin your overall savings plans.

I have heard people question 'how would they know' and I can't answer that bit

[Shnozz]

mfmman said:

You can only put money into one cash ISA in a financial year, so it might ruin your overall savings plans.

I have heard people question 'how would they know' and I can't answer that bit

I have often wondered that too. Is it linked to your NI number I wonder?

That said, with the rate on returns being what they are, I don't see it as being massively necessary to use an ISA wrapper. You'd have to have some pretty chunky investments to be seeing returns liable for tax.

[thepawbroon]

mfmman said:

You can only put money into one cash ISA in a financial year, so it might ruin your overall savings plans.

I have heard people question 'how would they know' and I can't answer that bit

The offer is (was?) also valid for Junior ISA, so if that was something you were thinking about for your little ones, it might be a good idea. Especially if you re-invest the cashback into the ISA.