Help needed with Vanguard website please (account opening)

jackieblack

I’m looking to open a Vanguard SIPP. I will only be paying in for just over 5 years and want to keep the money in cash. 

In the opening process I get to this screen, but I’m not sure which is the right option

I’d guess it’s Select your own funds, and would guess that maybe there’s an option to select cash as a fund further along the process, but also that this probably isn’t something I ought to guess at… I’d rather be certain 

Can anyone advise please?
Thank you

plumb1_2

Once you’ve deposited your money you can just leave it there. You don’t have to invest it.
I think they pay about 2% on it, or there abouts.
But you can invest it in Vanguard short term money market paying over 4% at the moment. Very low risk but not risk free.

jackieblack

Yes, thank you, but it’s getting the account open in order to be able to deposit the money that I’m having trouble with. 

I am very risk averse, so keeping in cash is my preferred option.

L9XSS

Hi, I’m with Vanguard and hold cash in my SIPP. Your nearly there it’s really easy just Select the screen on the right “Select your own funds” then tab right the way down to the bottom and you will find CASH, just enter the amount and it will show you a projection, you have to review that before you can proceed. It will also advise you of the HMRC addition (gross 25%) that will be added.

jackieblack

L9XSS said:

Hi, I’m with Vanguard and hold cash in my SIPP. Your nearly there it’s really easy just Select the screen on the right “Select your own funds” then tab right the way down to the bottom and you will find CASH, just enter the amount and it will show you a projection, you have to review that before you can proceed. It will also advise you of the HMRC addition (gross 25%) that will be added.

Thank you for confirming, that’s extremely helpful 🙂

L9XSS

Any problems then DM me or just post on here. It’s a really good platform to use and like a previous poster said you will earn 2.2% paid monthly into your SIPP on top of the cash held.

artyboy

OP - this has been pointed out many times on many threads, but being risk averse and putting your money in cash is contradictory. Yes, you eliminate risk of capital loss, but you guarantee loss of value due to inflation - in this case your money would be losing about 8% in value every year.

I would definitely urge you to at least take a closer look at the money market fund mentioned above - it will pay double what just a pure cash holding would with Vanguard, and with what is (in my view) negligible risk.