Best SIPP for Cash Deposits

purch

The main (only) benefit of having a SIPP is the ability to hold Investments unavailable through the use of other wrappers.

One of those unavailable elsewhere, is the ability to hold fixed income securities directly, and to hold them to maturity.

From reading many of the posts on this forum over the years it appears to be investment option that is often overlooked.

Gatser

davidbobs wrote: »

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.

Indeed!
If pensions could be made MORE BORING, but RELIABLE, it might actually start to make the majority of the population think seriously about having one!
From experience in several companies, often with generous employer contributions, employees just will not join the pension scheme because they see it as a big black hole.... mistrust is rampant.
It's all very well for us (relatively) pension-savvy folks on here saying how wonderful pensions are.... would it not be in the government's long term interest to offer a SIPP that could invest in Inflation linked government bonds? (with some upper limits to prevent the wealthy mob from putting £££millions in)

Gatser

purch wrote: »

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

Are we talking of Company issued bonds?
or Government Bonds (GILTS) ?

BrianD

I recently moved to the ipswich sipp and invested in a 3year bond paying 4.1% pa and the cost was £250 pa.

purch

Are we talking of Company issued bonds?
or Government Bonds (GILTS) ?

Fixed Income Securities include all those, and more.

SallyG

For a learner:
Is this what you're discussing?
http://www.ft.com/cms/s/2/2997065c-d7b0-11df-b478-00144feabdc0.html#axzz1BU7C9aVD
What's the difference between fixed term securities and fixed term annuities?

PaulCooper

Interesting (if you'll excuse the pun!) seeing the details on interest rates available on money in a SIPP. Mine is in the Ipswich, it pays 3.0% with 60 days notice. They have recently reduced this from 3.25% which I thought was a bit naughty

Paul

cing0

purch wrote: »

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

My interpretation of fixed income is something that doesn't potentially gain or loose much over time, as apposed to equity based funds. The underlying investment 'yield' a fixed income but the assets are traded on the market which makes the fund change price daily, if i'm right.

I think the benefits you get from a SIPP are that you can actively manage your investments and to that end, funds are out as they take days to buy or sell, leaving only equities & ETFs as the risky but rewarding option.

If you want a fund that's close to linear increase in value, try B3XVG57 - usual caveats apply.

If your close to retirement, the SIPP guide on here infers you should move from SIPP to an insured provider to get over £50k protection, and then take the usual advice to be in cash/fixed interest.

purch

The benefit of having a SIPP is that you are not limited to holding fixed income securities via a collective investment (fund)