A question about : ipledge university savings scheme
I wasn't sure where to put this on the Forum, since it combines cashback, credit cards and savings!
https://www.ipledge.co.uk/ipledge2/index.htm
Basically, you take out the credit card which offers 0.8% cashback. That's not a bad deal in itself. However the interest on balance transfers is 3.9%, where others offer 0%. The interest rate on the savings is vaguely referred to as "more than 4%", which isn't the most comptetitive rate either. Furthermore, the savings account is in the name of the adult, who will pay tax on the interest (if they are a taxpayer).
All in all, this looks like a collection of not terribly competitive products bundled up and sold to parents who are worried about their childrens financial futures. Alarmingly, they are urged to persuade the whole family to join in, which smacks of emotional blackmail to me. They do say you can close the account and transfer the proceeds at any time, but the sales pitch firmly suggests you keep the account for 21 years.
Of course, canny moneysavers will pick this offer apart and probably invest their money elsewhere. However, the pretty packaging (ooooh! shopping!) and scare tactics might win over parents who don't know better.
What to others think? Good idea? Bad idea? Adequate product with particularly manipulative sales pitch?
Best answers:
- I have just applied for this credit card and been accepted. Basically I applied for it as it offers a lifetime balance transfer of 3.9%. I also get 0.8% cashback on purchases made which are then transferred to a linked deposit account for my daughter's future.
I think the lifetime balance rate is good - also linked with Children's Mutual, I already have a baby bond with them which is performing well at the moment.
All in all I think it's a good package. - What rate of interest are you getting on the savings element? The site was unclear but I'm sure other accounts offer a higher rate. It just seems to me that if you break this down into its individual elements, you can get cheaper credit / higher savings interest elsewhere.
Something else that occurred to me - if the savings are in your name, you pay tax on them (if you are a taxpayer that is). An account in your daughter's name alone would be tax free.
It's not the worst deal out there, it certainly pays better than the pathetic rate I got from Britannia till recently! I just don't think it's the best. Just my opinion, of course cos I'm no expert - I am getting 4.07% gross on the deposit account - I do not pay tax.
I went for this card really to transfer debt from another card and stick with this one until I repay the balance as don't want to keep on applying for cards every 6 months. - Lifetime 3.9% is pretty good, not a lot of lifetime deals better than that.
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