What to do with H&L Sipp

Oddjob

Hi, I took advice on here and paid in £3000 to a H&L SIPP to get the tax relief of £750. I put it in as a cash SIPP that I would be able to draw. I haven't drawn any as yet and I believe I am right in saying it will not be earning any interest?

I want to take the money out, or rather some of it, to put it somewhere where hopefully it would be earning some interest and then put a lump sum back into the H&L SIPP, before the end of the tax year so I again get the tax relief next year.

Last tax year, (ending April 2018), with my pension and small earnings, I was over the personal allowance so will be liable for a small amount of tax.
This year 2018 - 2019, my income has/will drop and I doubt I will be liable for tax.

Can anyone give me any advice as to where would be best to put the money out of the SIPP, so that I can withdraw it easily but it still earn a bit of interest?

If this is not the correct place to ask, please feel free to move my post.
Thanks in advance.

AnotherJoe

Ok first thing is, if you take all the money out, HL will make a charge and shut the SIPP down . So this year take out £2,750 leaving £1,000 (which appears to be the minimum you need to leave in unless you have a lot of other investments with HL)
You can then put another amount in in the next tax year and this time take it all out since you'll still have the £1,000 in there.

As to where to put it there are a variety of savings and high interest products look at the links at the top of this page.

Ps technically it's earning interest but there's also a charge, and the two pretty much cancel out so effectively it isn't.

Mnd

I think there is no charge, but the interest rate is miniscule

xylophone

There is no charge for holding cash in the HL SIPP.

Interest rate is very low.

http://www.hl.co.uk/charges-and-interest-rates

Audaxer

Best to always leave £1,000 in and then pay back in £2,880 each year and take out £3,600 when the tax relief is received. The fact that you have to leave £1,000 in at a very minimal interest rate is worth it for the tax relief benefit you are getting each year if you are well under the personal tax allowance.

AnotherJoe

xylophone wrote: »

There is no charge for holding cash in the HL SIPP.

Interest rate is very low.

http://www.hl.co.uk/charges-and-interest-rates

Thanks, i misremembered, i think there is another SIPP provider who pays 0.35% interest but charges 0.3% so it comes to the same 0.05% as HL.

cloud_dog

AnotherJoe wrote: »

Thanks, i misremembered, i think there is another SIPP provider who pays 0.35% interest but charges 0.3% so it comes to the same 0.05% as HL.

Fidelity, possibly.