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Fidelity is offering new customers the opportunity to earn as much as £2,000 in cashback by switching their self-invested personal pension to its own platform.
Pensions savers have until 10 November to take advantage of the new Sipp offer, which is open to investors who transfer their Sipp from another provider, or open and invest a lump sum into Fidelity’s Sipp plan.
Customers must submit a Sipp transfer application before the cut-off date, or make a lump sum investment contribution into a new or existing Fidelity Sipp*.
In order to qualify, pension savers will have to add at least £35,000. Transfers above this and up to £49,999, will qualify for £200 in cashback.
However, the top £2,000 cashback prize is only available to those transferring or investing a Sipp worth more than £1million.
Below this figure, the cashback reward is tiered depending on the size of your investment.
In order to qualify for cashback over £1,000, pension savers will need at least £250,000
Between £50,000 and £99,999, savers can earn £300, while those adding between £100,000 and £249,999 will receive £600.
In order to qualify for cashback over £1,000, pension savers will need at least £250,000, but will need £500,000 for a £1,250 payout, and £750,000 for a £1,500 reward.
Those who qualify for cashback will be paid within 90 days of the offer ending on 10 November, assuming the transfer has been completed.
Transfers or contributions made via an adviser or intermediary won’t qualify for the cashback payments.
> Find out more about Fidelity’s cashback offer*
| Value | Cashback amount |
|---|---|
| £35,000 – £49,999 | £200 |
| £50,000 – £99,999 | £300 |
| £100,000 – £249,999 | £600 |
| £250,000 ?-£499,999 | £1,000 |
| £500,000 – £749,999 | £1,250 |
| £750,000 – £999,999 | £1,500 |
| £1 million+ | £2,000 |
| Source: Fidelity | |
Sipps offer more control over your pension investments than other types of pension, and are a popular way to build a retirement fund outside of workplace schemes. They are ideal for the self-employed, who don’t have access to workplace schemes but still want to build a retirement pot in a tax-efficient way.
Investors can contribute up to £60,000 per year free from tax, with funds benefitting from Government tax relief.
A 25 per cent lump sum can be withdrawn from the fund when the holder turns 55, although this will increase to 57 from April 2028.
Georg Bauer, head of Investor Product, Global Platform Solutions at Fidelity International, said: ‘Retirement planning has never been more important.
‘Our latest cashback campaign is designed to encourage investors to take control of their pension savings, while also rewarding them for making the most of the benefits a Sipp can bring.
‘With flexible options, a wide range of investments, and dedicated support, Fidelity’s Sipp offers the tools and guidance needed to build a stronger financial future.’
Fellow Sipp provider Interactive Investor also offers a cashback deal*, with £2,000 on offer for £1million transfers.
Interactive Investor will pay out cashback for transfers of just £10,000, but offers fewer tiered increments, meaning that someone paying in £750,0000 would earn the same cashback as someone paying in £500,000.
The deal is only open until 30 September.
> Read This is Money’s full guide to Interactive Investor’s Sipp offer
Cashback can be an attractive incentive to switch your Sipp to a new provider, but it is worth bearing in mind that each platform has its own set of nuances, fees and features, so following the money might not always be the wisest decision.
You can use This is Money’s best Sipps guide to help make the right decision for your circumstances.
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