Discount offers on Isa investments can be distracting and costly, warns Baillie Gifford.
The investment management group claims Isa adverts promoting discounted rates in the run-up to April 5 are distracting consumers, diverting attention from the actual cost of the underlying product.
Investors could lose hundreds of pounds in charges over the life of the investment says Baillie Gifford.
Baillie Gifford investment trust liaison and development manager Robert ORiordan says: “An Isa with a discount sounds like a tempting bargain but investors need to be wary of the other charges that they incur for their Isa. For example, dealing commission and percentage-based annual management fees can result in investors paying more in charges than they might think.”