Best SIPP for Cash Deposits

Gatser

Any hints & tips on best SIPP to hold Cash Deposits in?
(like Scottish Widows Deposit)

I am using a "Full SIPP" service which charges £00's which seems
OTT considering the modest interest (2.5%) I get on the cash.

You would think that Cash Deposits should not require such an expensive SIPP wrapper....

Thanks (in anticipation) ...

dunstonh

Typically, SIPPs were not designed to hold 100% cash. So, the charges, being explicit, would be offset against the investments. With larger holdings, which again was what SIPPs were designed for, the cash element would only make up a proportion of the total or be high enough that the explicit charges would not have much of an impact.

i.e. the SIPP may have a £200 a year charge and on a £20,000 fund, that is quite a hit. However, on a £500,000 fund its a blip that makes little or no difference.

Some SIPP providers price themselves specifically to be competitive with large value holdings but not with small value holdings.

Gatser

dunstonh wrote: »

Typically, SIPPs were not designed to hold 100% cash. So, the charges, being explicit, would be offset against the investments. With larger holdings, which again was what SIPPs were designed for, the cash element would only make up a proportion of the total or be high enough that the explicit charges would not have much of an impact.

Some SIPP providers price themselves specifically to be competitive with large value holdings but not with small value holdings.

Thank you... but that said... I am still wondering which SIPP provider folks find to be the best value for cash deposits.

Maybe, as you suggest, SIPP's should just not hold (100%) cash deposits!

davidbobs

I too would be very interested in a reply to this.
So, SIPPS are not designed for holding cash? They are just designed for making money for SIPP providers, or for IFAs?

I thought they were "designed" to provide secure pensions for retirement! I'm 2 years away from wanting to take an annuity with my SIPP pot, and I don't want to continue to gamble (which I believe is immoral in any case) with my pension. So I've just moved all my SIPP investments into cash. Why can't my SIPP provider (Sippdeal) offer any fixed return alternatives - as opposed to the hundreds of risky stock market gambles in its list? This strikes me as typical financial & business services sector racketeering. One day this Government (or the next) will catch up with them - but until then, are there any options out there that anybody can recommend?

noh

davidbobs wrote: »

I too would be very interested in a reply to this.
So, SIPPS are not designed for holding cash? They are just designed for making money for SIPP providers, or for IFAs?

I thought they were "designed" to provide secure pensions for retirement! I'm 2 years away from wanting to take an annuity with my SIPP pot, and I don't want to continue to gamble (which I believe is immoral in any case) with my pension. So I've just moved all my SIPP investments into cash. Why can't my SIPP provider (Sippdeal) offer any fixed return alternatives - as opposed to the hundreds of risky stock market gambles in its list? This strikes me as typical financial & business services sector racketeering. One day this Government (or the next) will catch up with them - but until then, are there any options out there that anybody can recommend?

Gilts, PIBS, Corporate Bonds ?

SIPP providers are running a business therefore they need an income.
This income can be from annual and dealing fees. In the case of the low cost SIPP providers, who charge low annual fees, income is provided from the bank where they deposit clients cash. It is simply an alternative charging model.
Hardly "racketeering" by any stretch of the imagination.

davidbobs

Great, I hadn't realised that there were such alternatives, where there was no risk of losing my pension capital.

I must also have misunderstood the substantial web debate about the extraordinary lack of fixed interest options for SIPP investors.

purch

I must also have misunderstood the substantial web debate about the extraordinary lack of fixed interest options for SIPP investors

The whole of the Fixed Income sector is available to SIPP Investors.

davidbobs

So, the fixed income sector will guarantee that my pension pot, invested now, will be at least no less in two years time?

purch

Yes, there are numerous Fixed Income Securities in that time frame.

Cautious_Investor_3

Hi

Passing no judgement on whether a SIPP should hold 100% cash, I'd take a look at the following:

European Pensions Management (not a great website, but I have heard good things about them:

https://www.epml.co.uk/sipp

James Hay e SIPP

http://www.jameshay.co.uk/sipp/eSIPP.aspx

Sippdeal

http://www.sippdeal.co.uk/

As an aside, it can be hard to find information on the best interest rates for deposit accounts which can be held in a SIPP. This site provides a pretty comprehensive list of accounts which indeed can be held in a SIPP:

http://www.!!!!!!.uk/free-services/best-buy-savings-accounts/accounts-for-pensions/

I hope this helps.

The Cautious Investor

Gatser

davidbobs wrote: »

I thought they were "designed" to provide secure pensions for retirement! I'm 2 years away from wanting to take an annuity with my SIPP pot, and I don't want to continue to gamble (which I believe is immoral in any case) with my pension. So I've just moved all my SIPP investments into cash. Why can't my SIPP provider (Sippdeal) offer any fixed return alternatives - as opposed to the hundreds of risky stock market gambles in its list? This strikes me as typical financial & business services sector racketeering. One day this Government (or the next) will catch up with them - but until then, are there any options out there that anybody can recommend?

I have some SIPP money with SIPPDEAL.
I was considering moving some into GILTS.
...or....
move it all over to SIPPCENTRE, which does charge a little more but allows cash deposits and more flexibility generally.
Currently in discussion with IFA's about what its all going to cost!