Can I access fixed rate deposit accounts in Drawdown ?

peterg1965

Morning All,

I know you can access fixed rate deposit savings accounts for a SIPP pre crystallisation, this is what I have done in the past with a Minerva SIPP (which is a full SIPP).  Most of the big SIPP providers, which are not really full SIPPS, don't offer this facility.

My question is, can I access the same fixed rate deposit accounts with a DC pension in Drawdown?  If so, I assume I would have to go back to a 'full SIPP' provider (eg. Minerva), as HL, AJBell, Fidelity et al, don't offer this.  I am currently with Fidelity.

Thanks.

dunstonh

I know you can access fixed rate deposit savings accounts for a SIPP pre crystallisation, this is what I have done in the past with a Minerva SIPP (which is a full SIPP).  Most of the big SIPP providers, which are not really full SIPPS, don't offer this facility.

Most pensions that are marketed as SIPPs are not actually SIPPs in the traditional sense.  They are a halfway house.  On the intermediary side, you find most platforms do not refer to their pension product as a SIPP unless it is a "full" SIPP.   On the DIY side,  it seems most platforms refer to their product as a SIPP despite not being "full" SIPPs.  Its all about marketing.

My question is, can I access the same fixed rate deposit accounts with a DC pension in Drawdown?

With some SIPPs you will get access to some deposit based products.

 If so, I assume I would have to go back to a 'full SIPP' provider 

Yes.  But you usually find that they are more expensive than platform pensions.    So, it would likely wipe out any difference you get between the cash deposit rates or money market returns.  The average cash interest rate on platforms in February was 3.1%.   The highest was 3.95%.      
Money market funds benchmarking to SONIA are close to 3.93%

peterg1965

Thanks Dunstonh,
I’ve just spoken to InvestAcc who run the Minerva SIPP, I can transfer the drawdown cash to them and access external deposit accounts and NS&I, as part of their full SIPP offering. 

The costs are £480 inc VAT as an annual charge, so that’s fair, and the same as it was 3/4 years ago.

the best 3 year fixed deposit I can find is 4%, if I could achieve that over the next few years, that would achieve my goal to retire in 3 years. 

midlandsimon

peterg1965- We have our SIPP plans with InvestAcc. Cannot speak highly enough of them since we moved across. Both really happy with them.