Low or no cost SIPP platforms to hold cash?

eastcorkram

QrizB said:

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.

As you would if it was invested in something surely? Yes, it's possible you'd have some growth to off set that, but you could also have a big loss too.
I'm doing similar to OP. Whilst also saving into a DC scheme at work which is invested, I pay cash into a sipp with a different provider, which just sits as cash. I intend to start using that cash, probably in 2 years time.

Albermarle

eastcorkram said:

QrizB said:

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.

As you would if it was invested in something surely? Yes, it's possible you'd have some growth to off set that, but you could also have a big loss too.
I'm doing similar to OP. Whilst also saving into a DC scheme at work which is invested, I pay cash into a sipp with a different provider, which just sits as cash. I intend to start using that cash, probably in 2 years time.

Normally you would expect investment growth to outpace inflation. Otherwise not worth taking the risk. Obviously this year it is the opposite but over the last decade or so, you would have seen significant growth above inflation. At some point normal service should be resumed, although probably many would be happy to just get ahead of inflation over the next few years, even if it is just by 1 % or so.
With a shortish time scale of 4 to 5 years, the argument of cash vs investments is less clear though and we will only know with hindsight,

eastcorkram

Albermarle said:

eastcorkram said:

QrizB said:

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.

As you would if it was invested in something surely? Yes, it's possible you'd have some growth to off set that, but you could also have a big loss too.
I'm doing similar to OP. Whilst also saving into a DC scheme at work which is invested, I pay cash into a sipp with a different provider, which just sits as cash. I intend to start using that cash, probably in 2 years time.

Normally you would expect investment growth to outpace inflation. Otherwise not worth taking the risk. Obviously this year it is the opposite but over the last decade or so, you would have seen significant growth above inflation. At some point normal service should be resumed, although probably many would be happy to just get ahead of inflation over the next few years, even if it is just by 1 % or so.
With a shortish time scale of 4 to 5 years, the argument of cash vs investments is less clear though and we will only know with hindsight,

Absolutely. I'm not even looking at 4 to 5 years though. Just 1 to 2. 
This is money , from nett pay, that I would have saved anyway, and would just have gone into a savings account. So instead of that, I pay it into the SIPP, and the tax relief gets added a few weeks later. No, it doesn't get any interest, and there won't be any growth either. But at least I know where I am with it. It's for money to live off, before needing to access the DC money, and DB and state pension. 

A_T

MK62 said:

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

where can we find the interest rates Vanguard pay? Also they keep 0.2% of the interest.

plumb1_2

I opened a vanguard sipp on 29/01/22 and put 20k in, plus I got 5k off Rishi.
Left it as cash, today it’s £38.55 up.
Fees so far £6.14 &£9.35, so someone clever than me( that’s easy) can work out the interest.

And my isa is only down 4.9%, 7% 2 weeks ago

Bimbly

eastcorkram said:

This is money , from nett pay, that I would have saved anyway, and would just have gone into a savings account. So instead of that, I pay it into the SIPP, and the tax relief gets added a few weeks later. No, it doesn't get any interest, and there won't be any growth either. But at least I know where I am with it. 

A perfectly sensible approach.

A_T

A_T said:

MK62 said:

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

where can we find the interest rates Vanguard pay? Also they keep 0.2% of the interest.

I messaged Vanguard about this today:

"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.

You will be able to see any interest under 'Transactions' > 'Cash statement'.

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. "

plumb1_2

Well I’ve only earned £38 interest on £25k in 6 months in my vanguard sipp

Albermarle

plumb1_2 said:

Well I’ve only earned £38 interest on £25k in 6 months in my vanguard sipp

Presume until recently they were paying less than 1 %.

A_T

Albermarle said:

plumb1_2 said:

Well I’ve only earned £38 interest on £25k in 6 months in my vanguard sipp

Presume until recently they were paying less than 1 %.

for more than half the last 6 months BOE base rate was 0.75% and lower