Cash held in SIPP Portfolio

soulsaver

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%.

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.

"Hi Soulsaver,

01/07/2022

 

Thank you for your email and interest in Vanguard.

 

With the Bank of England rate at 1.25%, Vanguard does currently pay 1.0% interest on cash held, this accrues daily and is paid monthly to your Vanguard account in arrears.

 

Please note that all holdings in your Vanguard account are subject to our 0.15% account fee, and this includes any cash that you hold. The account fee is calculated daily and charged quarterly."

They didn't mention the cap... but I assume that's just an oversight.

 

cloud_dog

Aviator1194 said:

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 :-)

It looks like Fidelity are also applying a small interest rate against cash on account, paying 0.25% for cash in a SIPP.