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Hargreaves Lansdown launches Sipp loyalty bonus
The investment supermarket has revealed the details of its new loyalty bonus for Vantage Sipp customers.
by Victoria Bischoff on Oct 04, 2012 at 11:56Follow @VBischoff
Investment supermarket Hargreaves Lansdown is introducing a new loyalty bonus of up to 0.5% for its Vantage Sipp (self-invested personal pension) customers from January next year.
The loyalty bonus, which we revealed last month, will be added to investors’ cash accounts automatically and usually on a monthly basis. How much the customer gets depends on the fund and the amount they invest.
For those with £20,000 in their Sipp, this works out to be a £660 bonus over the next 10 years, if you assume 5% growth in the value of the investment. People with £50,000 and £200,000, meanwhile, will receive £1,650 and £6,603 respectively.
Anyone with less than £1,000 in their account will not receive a bonus.
According to Hargreaves Lansdown, around 120,000 Sipp investors are set to benefit from the bonus on over 1,000 investment funds. The investment supermarket said it expects to pay out some £6 million to its customers in the next year alone.
The decision to introduce a new Sipp loyalty bonus brings the firm’s Sipp customers in line with its ISA investors, who already receive an annual 0.5% rebate from the money Hargreaves Lansdown is paid by fund managers.
You can find out the bonus rate paid on each fund and calculate how much you will receive on Hargreaves Lansdown's website.
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