Saga enters the discount broking isa market

SAGA ENTERS THE DISCOUNT BROKING ISA MARKET · All Saga's initial commission rebated back to customers · No administration fees · Extra discounts negotiated with selected fund providers · Call Saga on 0800 015 7588 for more details Saga has today announced that it is entering the Individual Savings Account (ISA) market as a discount broker. The company is rebating all of its up front commission back to customers and unlike some other discount brokers will not charge an administration fee. Through Saga, investors will be able to take out any equity based ISA with any UK provider*. The new ISA service will enable customers investing their total £7,000 tax-free ISA allowance, into any ISA of their choice, to benefit from a rebate of £210 (based on Saga's normal initial commission of 3%). In addition Saga has negotiated special offer discounts** with eight ISA providers - Aberdeen Unit Trust Managers Ltd, Fidelity Investment Services Ltd, Newton Fund Managers Ltd, Henderson Global Investors Ltd, Credit Suisse Asset Management Ltd, Invesco Perpetual, ABN Amro Fund Managers Ltd, Deutsche Asset Management to give further cost savings. Typically for a £7,000 investment into selected funds the initial charge is usually 5.25% or £367.50. Under this offer Saga will rebate 3% of this or £210. In addition, Saga has negotiated a further discount of 2.00% from the provider, which takes the initial charge to the customer to 0.25% or £17.50 saving an investor £350. These discounted special offers are available until 30th April so customers can benefit twice by investing in an ISA this tax year and next tax year - which means they could save up to £700. All rebates are used to discount initial charges taken from the lump sum by the providers. The minimum investment into the majority of ISAs is £1,000. To take advantage of this new service, investors can call Saga on 0800 015 7588 and request literature on their chosen ISA providers. The relevant information will then be posted directly to each customer enabling them to make an informed decision. Anyone choosing to invest should then complete the enclosed application form and post it back to the ISA provider who will set up the ISA and rebate the initial commission. Customers should ensure that they allow plenty of time for their application to reach their provider before 5th April. Andrew Goodsell, Managing Director at Saga Services said: "Most people dream about retiring early, but for many people, ensuring they have suitable savings is another matter. An Individual Savings Account is a good way to make additional savings for retirement as it doesn't have to be given up to buy an annuity and therefore can be held well into retirement years to benefit from maximum growth on the stockmarket. However, investors who are on the verge of retiring could also benefit by taking out an ISA investing in income funds to help supplement their pension. "It is important for people aged 50 and over to make the most of their tax free ISA allowance before the end of the tax year to ensure they don't lose it. Saga already offers a wide range of financial services including an annuity service, Independent Financial Advice, and Share Dealing; an ISA broking service is a natural progression. Some of our customers have been investing for years if not decades and so we hope that they will enjoy the discounts available to them through our new service." - ENDS - Notes to editors *Available for unit trust and OEIC investment managers which take investments through IFAs. **Remember, it is not permitted to invest in a Mini and a Maxi ISA in the same tax year. All transactions will be completed on a direct offer or execution only basis. ISAs are not suitable investments for everyone and if you have doubts about their suitability for you then you should seek independent advice before proceeding. The information provided in this promotion should not be regarded as individual advice. The value of ISA investments can go down as well as up and you may not get back the full amount invested. Past performance will not necessarily be repeated and the tax treatment of investments may change at any time in the future. Saga Investment Direct Ltd is regulated by the Financial Services Authority (FSA). Registered Office: The Saga Building, Enbrook Park, Folkestone, Kent CT20 3SE. Registered in England No.3023493. For further information, please contact: Lisa Harris (nee )French Saga Services Ltd Corporate Communications Tel: 01303 776023 Email: lisa.harris@saga.co.uk ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2002/03/06/20020306BIT01140/wkr0001.doc http://www.waymaker.net/bitonline/2002/03/06/20020306BIT01140/wkr0002.pdf