Hargreaves Landsdown Question

MonroeM

Please see Fidelity terms for holding cash below and current interest rate, if this is right?

SIPP Cash Account:
Any cash held within your SIPP will be pooled with other Account Holders’ cash and deposited by the Trustee in an interest bearing bank account operated by an authorised bank. The bank we have appointed may change from time to time. We will pay interest on cash held, which will be calculated daily and credited to your account on a monthly basis (normally the first week of each month for the preceding month’s interest). All interest will be paid gross. The rate you will be paid will be the Bank of England (BoE) base rate minus 1% subject to a minimum of 0.35%. Currently, Fidelity does not retain any part of the interest paid on Account Holders’ cash held with an authorised bank, but this may change in the future and we will notify you of any such changes.
For example:
If the BoE base rate is 0.5%, the interest you will receive on your holding in the SIPP Cash Account will be 0.35%. Alternatively if the BoE base rate is 2.5%, the interest you will receive on your holding in the SIPP Cash Account will be 1.5%.
For details of what we currently receive from the bank, please call us on

NorthernGeezer_2

So, after doing the maths Fidelity are paying double the interest of HL, 0.1% against 0.05% not that it will make much of a difference but at least you are not subject to market forces, other than inflation.

cloud_dog

MonroeM wrote: »

Please see Fidelity terms for holding cash below and current interest rate, if this is right?

SIPP Cash Account:
Any cash held within your SIPP will be pooled with other Account Holders!!!8217; cash and deposited by the Trustee in an interest bearing bank account operated by an authorised bank. The bank we have appointed may change from time to time. We will pay interest on cash held, which will be calculated daily and credited to your account on a monthly basis (normally the first week of each month for the preceding month!!!8217;s interest). All interest will be paid gross. The rate you will be paid will be the Bank of England (BoE) base rate minus 1% subject to a minimum of 0.35%. Currently, Fidelity does not retain any part of the interest paid on Account Holders!!!8217; cash held with an authorised bank, but this may change in the future and we will notify you of any such changes.
For example:
If the BoE base rate is 0.5%, the interest you will receive on your holding in the SIPP Cash Account will be 0.35%. Alternatively if the BoE base rate is 2.5%, the interest you will receive on your holding in the SIPP Cash Account will be 1.5%.
For details of what we currently receive from the bank, please call us on

Excellent find. I suppose the net effect, assuming they do levy a platform charge would be zero (unless larger balances involved)

pip895

ffacoffipawb wrote: »

When HL put their charges up post RDR they did not allow a free exit either.

As far as I remember - for me at least - the charges came down rather substantially post RDR - its just that suddenly you could see clearly just how much they were charging!

cloud_dog

ffacoffipawb wrote: »

When HL put their charges up post RDR they did not allow a free exit either.

Regarding my original comment (why I have chosen not to go with YouInvest), I didn't mean to imply that they were they only provider who acted in that manner, simply that as a personal choice I have chosen not to move to a provider who did, repeatedly, act in this manner. Obviously my very own teeny, tiny, minuscule protest.

I have no issue with increases in charges (per se) but, when the charging structure that your agreed contract was undertaken under is re-written (even though changes to said charges/structure are probably more than adequately covered in the providers T&Cs) there should be a clear quid pro quo to allow those users, who wish to, to move without being adversely penalised.

cloud_dog

Ok, so for absolute confirmation I can confirm that for cash Fidelity pay interest at 0.35% interest on the balance and charge the service fee of 0.35% (for my balance).

There are a few pennies difference, in my favour, so unsure how that actually came about other than slightly different calculation periods (days)?

NorthernGeezer_2

So, no pain or gain either way then, other than inflation.
HL pay 0.05% on cash though which don't really amount to much on a small pot.
The big question now is who is better to deal with?

cloud_dog

NorthernGeezer wrote: »

So, no pain or gain either way then, other than inflation.
HL pay 0.05% on cash though which don't really amount to much on a small pot.
The big question now is who is better to deal with?

If you are happy to treat this money as 'dead' money and simply use the account to accrue/retain cash for eventual withdrawal then I don't see an issue with HL.

Having gone from HL to Fidelity, HL website certainly comes across as more 'polished', user friendly. I've never really had a need to use HL customer service but people on here tend to speak in warm tones towards HL for their service.

MonroeM

cloud_dog wrote: »

If you are happy to treat this money as 'dead' money and simply use the account to accrue/retain cash for eventual withdrawal then I don't see an issue with HL.

Having gone from HL to Fidelity, HL website certainly comes across as more 'polished', user friendly. I've never really had a need to use HL customer service but people on here tend to speak in warm tones towards HL for their service.

That's perfectly correct, however if like us you want to invest your SIPP solely in IT's then Fidelity is good at the £45 cap per annum as well as no drawdown changes as opposed to HL's £200 cap plus drawdown charges and exit fees.

cloud_dog

MonroeM wrote: »

That's perfectly correct, however if like us you want to invest your SIPP solely in IT's then Fidelity is good at the £45 cap per annum as well as no drawdown changes as opposed to HL's £200 cap plus drawdown charges and exit fees.

I don't believe HL apply draw down charges, at least not according to their recently 'refreshed' (and not as easy to digest as the old version) website charges page.