Cash held in SIPP Portfolio

aroominyork

If you buy ultra short dated bonds or gilts, you could lose money if you are on a platform like HL that charges say 0.45% for invested funds but does not charge for cash balances. Just a point to be aware of.

masonic

aroominyork said:

If you buy ultra short dated bonds or gilts, you could lose money if you are on a platform like HL that charges say 0.45% for invested funds but does not charge for cash balances. Just a point to be aware of.

Do you know whether individual bonds/gilts are subject to the cap on the platform fee (as applied to other exchange traded investments)?

EthicsGradient

Aviator1194 said:

Albermarle said:

Reg_Smeeton said:

Does your provider not pay interest on cash balances? Vanguard are paying 1% at the moment I think

Are you sure about that, it seems a lot more than similar providers ( usually zero or near zero)?
This is the only info I could find and it is a bit vague.

AJB pay zero, they do have a savings fund but not in the SIPP wrapper

From 13 minutes ago (!), AJBell are paying a no-very-generous 0.1% above £10,000, 0.15% above £50,000, 0.25% above £100,000 : https://www.youinvest.co.uk/sipp/charges-and-rates

aroominyork

masonic said:

aroominyork said:

If you buy ultra short dated bonds or gilts, you could lose money if you are on a platform like HL that charges say 0.45% for invested funds but does not charge for cash balances. Just a point to be aware of.

Do you know whether individual bonds/gilts are subject to the cap on the platform fee (as applied to other exchange traded investments)?

Yes, they are if consistent with HL which says the cap applies to "Shares Including UK and overseas shares, investment trusts, exchange-traded funds, VCTs, gilts and bonds".

masonic

aroominyork said:

masonic said:

aroominyork said:

If you buy ultra short dated bonds or gilts, you could lose money if you are on a platform like HL that charges say 0.45% for invested funds but does not charge for cash balances. Just a point to be aware of.

Do you know whether individual bonds/gilts are subject to the cap on the platform fee (as applied to other exchange traded investments)?

Yes, they are if consistent with HL which says the cap applies to "Shares Including UK and overseas shares, investment trusts, exchange-traded funds, VCTs, gilts and bonds".

Thanks, then fees are only an issue if not holding shares, ITs, ETFs etc up to the value of the cap.

MK62

Reg_Smeeton said:

Albermarle said:

Reg_Smeeton said:

Does your provider not pay interest on cash balances? Vanguard are paying 1% at the moment I think

Are you sure about that, it seems a lot more than similar providers ( usually zero or near zero)?
This is the only info I could find and it is a bit vague.
Vanguard Asset Management | Personal Investing in the UK (vanguardinvestor.co.uk)

I’m sure I saw it somewhere when I topped up my Vanguard SIPP the other day, I remember specifically seeing the bit about “we keep the first 0.2%”.... typically I can’t find it now.....

Vanguard are indeed paying interest on cash balances within their Personal Pension......I've received no email about it and no secure message on the platform either, so it's probably buried in the Ts&Cs somwehere. It started in Feb (so first addition was on Mar 1st) and looks to have been about 0.25%pa.......which has steadily increased each month, so that today it looks to be about 0.85%.

Bravepants

Sometimes HL offer fixed rates for a period in their SIPP. But I've never seen one.

cloud_dog

MK62 said:

Reg_Smeeton said:

Albermarle said:

Reg_Smeeton said:

Does your provider not pay interest on cash balances? Vanguard are paying 1% at the moment I think

Are you sure about that, it seems a lot more than similar providers ( usually zero or near zero)?
This is the only info I could find and it is a bit vague.
Vanguard Asset Management | Personal Investing in the UK (vanguardinvestor.co.uk)

I’m sure I saw it somewhere when I topped up my Vanguard SIPP the other day, I remember specifically seeing the bit about “we keep the first 0.2%”.... typically I can’t find it now.....

Vanguard are indeed paying interest on cash balances within their Personal Pension......I've received no email about it and no secure message on the platform either, so it's probably buried in the Ts&Cs somwehere. It started in Feb (so first addition was on Mar 1st) and looks to have been about 0.25%pa.......which has steadily increased each month, so that today it looks to be about 0.85%.

Just for clarity, Vanguard apply their platform charge against the assets in the account, which would reduce the 0.85% down by 0.15% to 0.7% (net), where as HL, Fidelity, AJB do not apply the platform charge on cash held on account.  Still a good (???) rate for anyone holding cash.

Swipe

cloud_dog said:

MK62 said:

Reg_Smeeton said:

Albermarle said:

Reg_Smeeton said:

Does your provider not pay interest on cash balances? Vanguard are paying 1% at the moment I think

Are you sure about that, it seems a lot more than similar providers ( usually zero or near zero)?
This is the only info I could find and it is a bit vague.
Vanguard Asset Management | Personal Investing in the UK (vanguardinvestor.co.uk)

I’m sure I saw it somewhere when I topped up my Vanguard SIPP the other day, I remember specifically seeing the bit about “we keep the first 0.2%”.... typically I can’t find it now.....

Vanguard are indeed paying interest on cash balances within their Personal Pension......I've received no email about it and no secure message on the platform either, so it's probably buried in the Ts&Cs somwehere. It started in Feb (so first addition was on Mar 1st) and looks to have been about 0.25%pa.......which has steadily increased each month, so that today it looks to be about 0.85%.

 Still a good (???) rate for anyone holding cash.

Yep, especially if you are capped at £375 and looking to catch the market dips.

Aviator1194

EthicsGradient said:

Aviator1194 said:

Albermarle said:

Reg_Smeeton said:

Does your provider not pay interest on cash balances? Vanguard are paying 1% at the moment I think

Are you sure about that, it seems a lot more than similar providers ( usually zero or near zero)?
This is the only info I could find and it is a bit vague.

AJB pay zero, they do have a savings fund but not in the SIPP wrapper

From 13 minutes ago (!), AJBell are paying a no-very-generous 0.1% above £10,000, 0.15% above £50,000, 0.25% above £100,000 : https://www.youinvest.co.uk/sipp/charges-and-rates

Thanks for the info, so generous of AJB :-)