SIPPs which offer access to cash deposit accounts

Gatser

Peterg: welcome to the Minerva club!
Thanks for your feedback too.... I have just moved
Some cash into the Investec 1.85% deposit too!

peterg1965

Just to add to this thread.

My MINERVA SIPP is now up and running HL funds transferred, with all but one fixed rate deposits in place with external banks. I am a lot happier that I can reach my short term goal with respect to my SIPP with practically nil risk, getting a guaranteed near 2% return over the next 2 years to get me to 55 is spot on.

All in all, a very efficient service and I am very pleased overall. The online portal isn't up to much, but then again you wouldn't expect it to as its not a fund supermarket like HL.

My only outstanding query is the outstanding tax relief on deposits made to my HL SIPP back in July/August, I am hoping that HL will automatically transfer them on to InvestAcc to go into my SIPP cash account, but no sign of that yet.

Anyway, this is recommended route if anyone else is in a similar situation, as the big name SIPPs fail to offer access to fixed rate deposits.

robber2

Hi Peter, thanks for blazing the trail on this.



I'm at the point of retiring now, have grabbed my 25% TFLS but don't need to dip into my drawdown funds for a while. Now that I'm no longer in the accumulation phase and wanting to preserve what I've got I've been getting increasingly frustrated at being unable to 'invest' in cash with H&L at anything other than their derisory cash account rate. The Minerva SIPP looks to be ideal.



You don't mention whether InvestAcc have any kind of dealing platform or online account . If not how to you go about instructing them to make the deposits for you?



regards


Rob

xylophone

You don't mention whether InvestAcc have any kind of dealing platform or online account . If not how to you go about instructing them to make the deposits for you?

The online portal isn't up to much, but then again you wouldn't expect it to as its not a fund supermarket like HL.

https://www.investaccpensions.co.uk/existing-customers/sipp-members/

Sounds rather clunky when compared with HL but if Peterg only wants to hold cash for a couple of years this should not matter too much?

OldMusicGuy

Interesting. I am holding a big chunk of cash in my HL SIPP for similar reasons (I have an even bigger chunk invested for the long term). I could move the cash to InvestAcc or Close and get some interest on it. Well worth looking into, thanks for the heads up.

peterg1965

Basically the SIPP cash is held in a Metro Bank account and attracts 0.55% interest if it just sits there. I selected the external SIPP deposits I wanted, got the application forms, filled in my bits and send to InvestAcc and then they deal directly with the banks as the adminsitrator on my behalf. The basic online portal shows where you money is.

With interest rates likely to slowly creep up, I can see myself staying in fixed rate cash accounts for the foreseeable future and into drawdown when I start in 4/5 years time. I have no need to take unnecessary risks as the majority of my retirement income will be from a DB pension.

The top rate for a fixed rate 5 year SIPP cash bond is currently 2.25%, if this creeps up towards 3-3.5% over the next few years, I will definitely be using a fixed rate strategy. I like the certainty and lack of risk.

timodell

peterg1965 wrote: »

Thanks all.


I contacted InvestecAcc pensions todays and I am impressed with their relatively simple SIPP model. I am setting up a Minerva SIPP with them and transferring my HL SIPP, c£212,000. I need to sell all of the current OEICs first, so that will be the longest part of the process.


There are no charges for a transfer in and a flat rate of £480(inc VAT) per year, and no other charges which sounds reasonable. Once the SIPP is up and running I am applying to open three fixed rate savings accounts and will take out 3 x two year fixed rates bonds as follows:


Investec @ 1.85% gross pa (£80,000)
Close Brothers Savings @ 1.8% (£66,000)
United Trust Bank @ 1.8% (£66,000)
(All FCSC protected)


Then I will continue to contribute £1275/net a month and trickle all those contributions into a Mansfield Building Society 90 day SIPP Trust notice account @ 1% pa. Plus I will probably make an additional £2k lump sum addition.


So, in 2 years (provided tax relief rules are not changed) I will have approx. £262,500 at the point I wish to crystallise and take the 25%PCLS. Which is where I wanted to be and at absolute minimal risk. This will take up a further c24.5% of my LTA, leaving me with 14% left, and once that is used up its probably time to retire!

Only quibble I have with this strategy is why you are using the Mansfield BS 90-day notice account paying 1.0% for your incremental cash when you could use the NS&I no-notice Income Bonds which pay 1.15% and obviously have unlimited government protection...?

robber2

My InvestAcc SIPP is now open and fully funded but I'm having trouble finding good fixed rate accounts to invest with. The problem is that most are online applications only. To open the accounts within my SIPP I need to find providers who will accept paper applications.



Whilst PeterGs selection here;

Investec @ 1.85% gross pa (£80,000)
Close Brothers Savings @ 1.8% (£66,000)
United Trust Bank @ 1.8% (£66,000)
(All FCSC protected)


was good at the time Investec is the only one that is still offering an attractive interest rate.


Anyone know any good paying bonds / term accounts which accept postal applcations?





thanks


Rob

timodell

Bath Building Society £83,000 1 year 1.70%
Metro Bank £83,000 18 mths 1.95%
United Trust £82,000 2 year 1.60%
Investec Bank UK £82,000 2 year 1.95%
Hodge Bank £83,000 3 year 1.80%
Punjab National Bank £83,000 4 year 2.00%
Close Brothers £83,000 5 year 1.90%
State Bank of India £83,000 5 year 2.00%
NS&I Gntd Growth Bond £10,000 3 year 1.95%
NS&I Gntd Income Bond £10,000 3 year 1.92%
NS&I Income Bonds £201,000 1.15%
Metro Bank Cash £1110.55%
TOTAL £883,1112.3 1.70%


These are the accounts I have recently opened (still all available as far as I know)

robber2

thanks Tim,


have you opened all of these by post?



regards


Rob