This guide provides a comprehensive overview of the fees we and/or our Partners may charge and any mechanics pertaining to such fees. Please also refer to the Raindrop Terms & Conditions and any other documentation we present you with. The Raindrop Terms & Conditions define any terms not defined here.
You will be due to pay Charges when they become due to be paid under your Raindrop Account. We will only charge you and you will only be due to pay each of our fees:
- From receipt of the first payment into your Raindrop Account or a Raindrop Arrangement with a Partner (the Administration Fee)
- On buying and holding a Permitted Investment that is available through the Raindrop Account (the Fund Fee)
- If you request and receive additional Raindrop Services that are not Inclusive Services (the Annual Maintenance Fee)
- Where payments are made out of the Raindrop Account or a Raindrop Arrangement with a Partner (the Drawing Pension Benefits Fees)
- Where we have notified you of any additional fees that may become due (the Incidental Fees and Other charges that may apply)
The Charges Guide sets out the current fees and charges associated with the Raindrop Pension Account,and other Raindrop Arrangements and Raindrop Accounts you may have. These may change from time to time. Please ensure you check the fees which apply before you seek to make a withdrawal.
Administration Fee & Fund Fees
Unless explicitly stated otherwise, Raindrop will cover any fees it incurs on your behalf in its interactions with any Partner from the charges you pay to Raindrop.
In the Raindrop Pension Account:
On the first £100,000
Anything over £100,000
The fee is billed monthly but calculated by applying the daily equivalent of the annual percentage rates shown to the value of your account each day.
The total charge to you for the Raindrop Pension Account is 0.75% per annum on the value of assets, including cash, held in your Raindrop Pension Account, if your asset value is up to and including £100,000.
This is made up of an Administration Fee of 0.54% per annum (used to cover our services and to pay for the services of the Partners) and a Fund Fee of 0.21% per annum (Annual Management Charge or AMC, paid to the asset manager).
The Fund Fee is charged by the asset manager. This applies where your underlying investment is a BlackRock ® LifePath ® fund. Should other funds be made available in the future, they may have different fund fees.
The Administration Fee of 0.54% is applicable to any assets or value up to and including £100,000. For any amount above £100,000, the Administration Fee is only 0.35% per annum.
The Administration Fee covers all costs typically associated with pensions, including the pension administration cost, custody fees, payment processing fees, et cetera and our services to you.
Illustrative costs to you over a 1-year period under a Raindrop Pension with a BlackRock ® LifePath ® fund as it's underlying investment:
£5,000 in assets: £27.00 Administration Fee + £10.50 Fund Fee (£37.50 total)
£20,000 in assets: £108.00 Administration Fee + £42.00 Fund Fee (£150.00 total)
£200,000 in assets: £890.00 Administration Fee (£540 on the first £100,000 and £350 on the second £100,000) + £420.00 Fund Fee (£1,310 total)
Please also see your Key Features Illustration.
Aside from the fees described here, you should also be aware of transaction costs which are incurred by the asset manager in the natural course of business when they buy and sell assets within your investment plan. Their impact may be to reduce the performance of your investment.
Annual Maintenance Fee
The Annual Maintenance Fee currently does not apply to any of our products or services that we offer but may do so in the future.
There is no specific charge for:
Tools and educational materials around pensions and savings which are provided for informational purpose only and should not be construed as advice of any sort
Locating old pensions and transferring one or more of these into your Raindrop Pension Account, facilitated by Partners
Making use of the Raindrop website and any ancillary offering
Changing the investment fund
Making one-off or recurring voluntary contributions
There is no inactivity or maintenance fee or similar for dormant accounts/a Raindrop Pension to which you are no longer contributing (but there will be Administration Fee and Fund Fee)
Drawing Pension Benefits & Transferring Out
At the moment, we focus solely on helping you to accumulate pension savings and consolidate your old pension pots. We’re working hard to be able to offer you draw down or annuity options, in the future; at the moment, we deal with these sort of requests on a case-by-case basis with our partners. You are of course also free to transfer to another provider who does offer this when needed and we will make this as simple as possible for you. We do not charge for transfers out.
For particularly complex or protracted matters an hourly rate of £100 may be charged. We will inform you of such matters before any charge is applied.
If you wish to receive communication by post you can contact us at firstname.lastname@example.org and we will endeavour to accommodate this at our discretion, though we may pass on costs in providing this service.
If an order is placed through alternative means (other than through our website or app), we may charge a reasonable fee to cover our expenses.
You may reach out to us for any other ad-hoc services you would like us to provide not covered here at email@example.com and we will endeavour to accommodate your request at our discretion, thought we may pass on fees reasonably incurred by us to allow us to provide this service.
Unless otherwise stipulated, no interest will be paid to you.
If we or our Partners receive interest and retain a proportion of that interest (as a percentage or as an actual amount) we will disclose that to you.
The Administration Fee is exempt from VAT. However, VAT may be due on other services we or our Partners provide and you will be liable for such.
Other charges that may apply
In the unlikely event we were to cease trading, there may be additional charges to pay to our Partners in relation to the administration of your account. These are to cover the fact that we will no longer be able to act as an intermediary between you and our Partners. We do not anticipate that these charges will need to be applied but please note that our Partners reserve the right to charge such fees and set the level of these fees.
It is important that you make sure that there is enough cash in your Raindrop Account or the Raindrop Arrangements or a particular Partner’s Account at all times to cover any Charges that you incur.
If you do not have enough Cash in your Raindrop Account or Raindrop Arrangements to cover the Charges that you incur or income that you have asked us to pay you, we have the right to sell your Investments without giving you prior notice.
This Charges Guide forms part of the terms and conditions under which you are liable to pay the charges as detailed, and you authorise us to take, and the Partners to take, payment from any of the Raindrop Arrangements you hold through Raindrop, to extent permissible under current legislation.