SIPP for cash

eastcorkram

I have a SIPP with HL, which is a  company pension scheme. There's about £8,000 a year going into this, done via salary sacrifice. That money then gets split into four different funds. 

I'm wondering if the following is possible.

I'd like to be able to transfer money in , whenever. Not a regular amount. I'd like HL to then add the tax relief. I'd also then like to it to stay as cash. So, I'd be using it basically as a savings account. Not planning to withdraw anything until retirement anyway. 

Even if this is possible, would it be too messy to do it with the existing SIPP?

Can you have two SIPPs with one provider, or would I need to set it up somewhere else?

zagfles

You can hold cash in the HL SIPP. No interest, but no platform charges on it either.

eastcorkram

zagfles said:

You can hold cash in the HL SIPP. No interest, but no platform charges on it either.

I can. There is actually some there already. But the money that gets transferred to them currently from my employer, doesn't get the tax relief claimed , as it's salary sacrifice. This goes in weekly. The money I would pay in, would need the tax relief claimed.
I could increase the amount done through salary sacrifice of course , to benefit from the NI saving , but I'd rather leave that as it is, so I'm not committed to the extra money going in. It might be £100 one week. £25 the next , then nothing , then £50. 

Maybe I'll ask HL.

zagfles

eastcorkram said:

zagfles said:

You can hold cash in the HL SIPP. No interest, but no platform charges on it either.

I can. There is actually some there already. But the money that gets transferred to them currently from my employer, doesn't get the tax relief claimed , as it's salary sacrifice. This goes in weekly. The money I would pay in, would need the tax relief claimed.
I could increase the amount done through salary sacrifice of course , to benefit from the NI saving , but I'd rather leave that as it is, so I'm not committed to the extra money going in. It might be £100 one week. £25 the next , then nothing , then £50. 

Maybe I'll ask HL.

You can do that in a normal SIPP but not sure if it's a workplace SIPP, whether you could add a personal contribution, I would imagine so, ask them, their helpdesk is quite helpful...

jamesd

HL has in the past paid low interest rates on cash, they take a substantial cut from market interest rates and rates are too low currently for them to take the cut they want and pay customers. They also offer fixed rate term deals that you might want to use because those do pay some interest.

zagfles

jamesd said:

They also offer fixed rate term deals that you might want to use because those do pay some interest.

Not in a SIPP they don't (they did many years ago, but not now). They have "active savings" but that's unwrapped.