Best SIPP provider for cash

double_dutchy

I'm retired and have had a SIPP for a few years - I haven't taken anything out yet and I make the maximum contribution allowed given I don't have any earnings - £2,880 before tax is added.

Mrs double_dutchy is also retired and she's thinking of starting a SIPP and also investing the maximum each year.......but she may only want to hold the money as cash. She already has a Hargreaves Lansdown account with a few investments, so it might be simplest to open a SIPP with them too........but does anybody have any recommendations for better SIPPs, especially if the money is held as cash - what's the best interest rate she can get?

Any advice appreciated, thanks

NedS

Interest rates on SIPPs are never going to be good. Why not buy short dated gilts? If you are prepared to hold to duration there is no risk and you will likely get a far better rate of return than holding cash.

A_T

Vanguard roughly 2.6% net

double_dutchy

NedS said:

Interest rates on SIPPs are never going to be good. Why not buy short dated gilts? If you are prepared to hold to duration there is no risk and you will likely get a far better rate of return than holding cash.

Thanks NedS, I don't know anything about short dated gilts, but I'll look in to it

A_T said:

Vanguard roughly 2.6% net

Thanks A_T

green_man

Halifax SIPP used to pay BOE base rate on cash balances…but…surprise surprise …. once interest rates started soaring they dropped that commitment and went to a flat rate…currently 1.3% 

QrizB

double_dutchy said:

NedS said:

Interest rates on SIPPs are never going to be good. Why not buy short dated gilts? If you are prepared to hold to duration there is no risk and you will likely get a far better rate of return than holding cash.

Thanks NedS, I don't know anything about short dated gilts, but I'll look in to it

There is a list of gilt prices and redemption yields here:

https://www.sharecast.com/gilt/all

Redemption yields for conventional gilts seem to be mostly around 3.3% at present.