Exit charge

Exit Charge. Some investment products such as unit trusts sometimes have exit charges. Also known as a Back-End Load, the Exit Charge will be imposed if you decide to cash your investment chips in.

You are only likely to face a back-end load from a unit trust or life assurance company. The size of the exit fee varies. It may be a fixed percentage, or may be on a sliding scale, which will depend directly on how long you have held your investment for - reducing, say, from 5% at the end of year one to 1% at the end of year five.

Remember, these percentage charges will be calculated on the size of your investment at the time you cash the investment in.

See Also: Investment Centre Current Account Comparison Service Deposit Account Comparison Service Cash ISA Comparison Service

Last Updated: May 2007 © Moneyextra.com

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