Low or no cost SIPP platforms to hold cash?

DBdoobydoo

I am post UK state retirement age but still working in a high paid job. I already have a SIPP with Hargreaves Lansdowne. Currently I only hold cash as I am not interested in speculation just tax saving. My plan in a couple of years is to liquidate the SIPP while tax resident in France when I will only need to pay 7.5% tax. The French tax rules require you to totally liquidate the pension pot to take advantage of the low tax rate. To give myself more flexibility instead of having say £120,000 in my HL SIPP it might be better to have three different SIPPs of £40,000 each. HL make no charge for a SIPP held in cash. Are there any other SIPP providers who don't charge or who have a very low charge for a SIPP held in cash?

MK62

Vanguard charge 0.15% on everything in the pension, but currently pay something between 0.8-1% on the cash balance.

AJ Bell don't charge for cash, and pay 0.1% interest on £40k.

PS - you'd need to check the rules for non UK residency though......not something I've ever looked into tbh.

Albermarle

Fidelity do not charge for cash.

By the way investing is only speculation, when you try and time the market by buying and selling frequently, or buying one companies shares as you think they will go up a lot.

Most of the regular contributors to this forum, are long term buy and hold investors, not speculators.

DBdoobydoo

Albermarle said:

Fidelity do not charge for cash.

By the way investing is only speculation, when you try and time the market by buying and selling frequently, or buying one companies shares as you think they will go up a lot.

Most of the regular contributors to this forum, are long term buy and hold investors, not speculators.

I only plan on working for another 2-3 years before retiring to France so I will only be holding the SIPP(s) for at most 4-5 years so any investment would be speculation on my part.

DBdoobydoo

MK62 said:

Vanguard charge 0.15% on everything in the pension, but currently pay something between 0.8-1% on the cash balance.

AJ Bell don't charge for cash, and pay 0.1% interest on £40k.

PS - you'd need to check the rules for non UK residency though......not something I've ever looked into tbh.

I am UK resident & will be taking 25% tax free before moving to France. I recognise that I may not be able to add to my SIPPs while not UK resident but I won't be forced to cash them in just because I move abroad.

QrizB

DBdoobydoo said:

I only plan on working for another 2-3 years before retiring to France so I will only be holding the SIPP(s) for at most 4-5 years so any investment would be speculation on my part.

Obviously it's your choice, but over 4-5 years you could lose a third or more of the value of your cash to inflation.

green_man

You need to look at the total cost/benefit.   Halifax SIPP pay BOE base rate on cash balance (1.25% currently).
You will pay £45 per quarter charges for any figure over £50k, half that if under 50k.  But £180 per year charges are insignificant if you had £120 k in earning £1500 per year.

Bravepants

You might also consider the management charges for eventually going into drawdown. Some, like HL and Vanguard, offer fee free drawdown, other providers may not, for example Close Brothers.

mcc100

The Minerva Sipp from InvestAcc allows cash to be held in selected deposit accounts and there is a flat rate annual charge of £400 + vat.

There are a couple of 2 year fixed rate options with annual interest rates of 2.5% and 2.7%, so after two years your £120,000 would be worth over £125,000 after fees.

michaels

Where do people find these sipps paying interest on cash balances, is there a website that lists them?  Are there any that pay a rate linked to the base rate? Thanks

green_man

michaels said:

Where do people find these sipps paying interest on cash balances, is there a website that lists them?  Are there any that pay a rate linked to the base rate? Thanks

Yes read my response above.  Halifax SIPP pay BOE base rate on cash balances.    There is the famous snowman’s spreadsheet that is referenced regularly on this board that collects many of the charges and terms for SIPP/ISA providers. It’s a fair starting point, but doesn’t cover everything and I found I still had to look at each option via their websites to find out how my particular circumstances/pot sizes/trading requirements panned out.   Having done that I found for a largish pot, doing little trading, and yearly UFPLS withdrawals that Halifax SIPP was the best option for me.