Vanguard Sipp

squash18

I currently have all my various funds in my sipp( which I will start drawing from shortly) with Interactive investor. 

The portfolio consists of 40 % in vanguards funds as well as a couple of years spending in cash. 

Looking at a vanguard sipp it currently pays  to better than I am receiving at ii. 

I was considering transferring the vanguard funds in species and the cash over to a Vanguard sipp. 

The advantages being the better interest rate on my cash and the fact all my pension is not with the same company. 

Are there any disadvantages that I have missed? 

Any thoughts? 

Thanks 

As they are one of core holdings I do not intend to sell for a long time.

Exodi

Where did you see that Vanguard pays 3.4% interest on cash?

From memory there were several 'hidden' charges from interest paid on cash at Vanguard.

Albermarle

Exodi said:

Where did you see that Vanguard pays 3.4% interest on cash?

From memory there were several 'hidden' charges from interest paid on cash at Vanguard.

I think there is a 0.5% charge and then the usual platform charge of 0.15%. Still better than other platforms though AFAIK

zagfles

Albermarle said:

Exodi said:

Where did you see that Vanguard pays 3.4% interest on cash?

From memory there were several 'hidden' charges from interest paid on cash at Vanguard.

I think there is a 0.5% charge and then the usual platform charge of 0.15%. Still better than other platforms though AFAIK

Where do you get that from?

Their charges documents says "We do not charge a service fee for holding your cash. Instead we currently keep up to 0.20% of any interest we receive on cash held in your account, to cover our costs of administering it."

https://www.vanguardinvestor.co.uk/what-we-offer/fees-explained

But I can't find anywhere that says what the current interest rate they're getting is.

Sharktail

Hi hope this helps I contacted vanguard when rates were lower here is the response from vanguard 

With the Bank of England rate at 1.75%, Vanguard does currently pay 1.50% 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. 

I hope this helps, but if you have any further questions please do not hesitate to reach back out. 

Kind regards, 

Sharktail

So it looks as though after fees they pay 3.1%

Albermarle

zagfles said:

Albermarle said:

Exodi said:

Where did you see that Vanguard pays 3.4% interest on cash?

From memory there were several 'hidden' charges from interest paid on cash at Vanguard.

I think there is a 0.5% charge and then the usual platform charge of 0.15%. Still better than other platforms though AFAIK

Where do you get that from?

Their charges documents says "We do not charge a service fee for holding your cash. Instead we currently keep up to 0.20% of any interest we receive on cash held in your account, to cover our costs of administering it."

https://www.vanguardinvestor.co.uk/what-we-offer/fees-explained

But I can't find anywhere that says what the current interest rate they're getting is.

There were previous threads on the subject, with quite a lot of confusion. Clearly I was wrong about the 'administering cost' being 0.5%, but there is still some confusion.

We do not charge a service fee for holding your cash ( from your post)

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 ( from the previous poster)

coyrls

I doubt you will be able to do a partial transfer if you have already crystallised, even if you haven't crystallised yet, you may not be able to do a partial transfer from II.

squash18

coyrls said:

I doubt you will be able to do a partial transfer if you have already crystallised, even if you haven't crystallised yet, you may not be able to do a partial transfer from II.

I haven’t crystallised anything and I can’t see why a partial transfer with funds in specie is a problem as having 2 different platforms is common but could be wrong 
edit quick google says I can do a partial transfer 

Albermarle

squash18 said:

coyrls said:

I doubt you will be able to do a partial transfer if you have already crystallised, even if you haven't crystallised yet, you may not be able to do a partial transfer from II.

I haven’t crystallised anything and I can’t see why a partial transfer with funds in specie is a problem as having 2 different platforms is common but could be wrong 
edit quick google says I can do a partial transfer 

The issue with a lot of similar scenarios, is what you are allowed to do legally/tax wise, and what the platform allows/ is capable of, are not necessarily the same.
If II allow it then you are OK .

zagfles

squash18 said:

coyrls said:

I doubt you will be able to do a partial transfer if you have already crystallised, even if you haven't crystallised yet, you may not be able to do a partial transfer from II.

I haven’t crystallised anything and I can’t see why a partial transfer with funds in specie is a problem as having 2 different platforms is common but could be wrong 
edit quick google says I can do a partial transfer 

If uncrystallised a partial transfer is OK, but can't do partial transfers with crystallised funds.