Pension deposit account 4.10% fixed for 3 years

Cautious_Investor_3

Hi

For those of you with a SIPP looking for a deposit account take a look at the following:

Summary:

http://www.!!!!!!.uk/free-services/best-buy-savings-accounts/all-saving-accounts/rbs-the-royal-deposit-plan-7/

More details:

http://www.!!!!!!.uk/technical-area/savings/account-in-focus-the-royal-deposit-plan-7-4-10-gross-aer-fixed-for-3-years/

Hope this is of help to those of you looking for 'decent' cash returns.

The Cautious Investor

BrianD

Hi Cautious Investor I am interested in this account for my sipp funds are coming out of a one year deal via HL on Monday but I am guessing that this fund will not be an option on their vantage sipp account so have you any ideas on another sipp provider and whether it is possible in the timeframe reqd.

Cautious_Investor_3

Hi

The closing date for the account I believe is 24th December, although previous issues have closed early.

You are right HL don't offer access to the full market for deposit accounts, which is a disadvantage of their otherwise excellent product.

There are many SIPP providers who will offer unfettered access to the deposit account market, I know a number of my friends and ex clients like the SIPP Centre, although this isn't a recommendation you understand!

If the account stays open I'd say the timefranme was doable, however you will need to get your skates on.

The Cautious Investor

BrianD

Many thanks for such a quick response.

Deppy

Thanks Cautious Investor, certainly something I will be looking at. Can I access this direct myself or do I need an adviser?

Cautious_Investor_3

Deppy wrote: »

Thanks Cautious Investor, certainly something I will be looking at. Can I access this direct myself or do I need an adviser?

I believe it has to go through an adviser, but they get paid by the provider, 0.75% I believe so they shouldn't charge anything to process it.

The Cautious Investor

SallyG

The Cash Fund of my SW Stakeholder has staggered from £36,964 to £38,675 in 3 years after 1% AMC taken.
My maths useless: is this about/over 4%?
I regularly fret over moving it to greener pastures. I'm interested in 4.10% [fixed] being seen as a decent return for cash in a pension fund.
My cash fund is SW series 3:
Top Ten holdings
1 Week Cash 23.8 %
Deutsche BK 4.2 %
DANSKE BK 4.1 %
Unicredito Italiano 3.8 %
Societe Generale 3.7 %
BBVA Senior Finance SA 3.6 %
ING BK London 3.1 %
Nationwide Building Society 3.0 %
Intesa San Paolo 3.0 %
KBC BK 3.0 %

Will it grow on for a bit yet ?

Cautious_Investor_3

SallyG wrote: »

The Cash Fund of my SW Stakeholder has staggered from £36,964 to £38,675 in 3 years after 1% AMC taken.
My maths useless: is this about/over 4%?
I regularly fret over moving it to greener pastures. I'm interested in 4.10% [fixed] being seen as a decent return for cash in a pension fund.
My cash fund is SW series 3:
Top Ten holdings
1 Week Cash 23.8 %
Deutsche BK 4.2 %
DANSKE BK 4.1 %
Unicredito Italiano 3.8 %
Societe Generale 3.7 %
BBVA Senior Finance SA 3.6 %
ING BK London 3.1 %
Nationwide Building Society 3.0 %
Intesa San Paolo 3.0 %
KBC BK 3.0 %

Will it grow on for a bit yet ?

Hi

The problem you have with Cash Funds is that the return has reduced significantly over the past couple of years with falls in interest rates and the charges have stayed the same.

This issue is made even worth by current rates of inflation.

The 4.10% account is available through a SIPP, so you would have to transfer your SHP to a SIPP. If you did this you would need to watch out for the charges on the SIPP as they could work out to be more expensive that the SHP, although total return is important and it is possible, if you have a larger fund, that the fixed fees of a SIPP could be better than the 1% on a SHP.

How much do you have in your pension?

On another point, why are you invested in Cash? There are many reasons to be, just curious thats all.

The Cautious Investor

Linton

SallyG wrote: »

The Cash Fund of my SW Stakeholder has staggered from £36,964 to £38,675 in 3 years after 1% AMC taken.
My maths useless: is this about/over 4%?

No, its 1.5% per year!!!

Why not have a bit in something that's more likely to give some meaningful return?

BrianD

Hi Cautious Investor

Started the ball rolling this morning, sold my various funds which are still pending and am moving to Stadia Trustees Ipswich Sipp where I can either use their own deposit account which pays up to 3.25% or for a £500 annual fee use any other suitable deposit account.

At HL I was put onto one of their managers re why I was leaving and he was not surprised to learn that it was due to them no longer trying to get better rates for their customers, in fact it seems that nearly 40% of their customers are in cash.

Linton asked why cash and not something more rewarding, in my case simply because I will take an annuity in a couple or so years and I want to sleep at night.

Cautious_Investor_3

BrianD wrote: »

Hi Cautious Investor

Started the ball rolling this morning, sold my various funds which are still pending and am moving to Stadia Trustees Ipswich Sipp where I can either use their own deposit account which pays up to 3.25% or for a £500 annual fee use any other suitable deposit account.

Did you consider the SIPP Centre, or indeed others, £500 annual fee just to use external deposit accounts sounds high.

The Cautious Investor