How do I invest a private pension pot at fixed interest rate?

Albermarle

I pay Minerva £480 pa (inc VAT).  I was paying Fidelity 0.35% of my pension value (£220k and rising) so £770 pa minimum.

If your pension value with Fidelity reached £250K the platform charge drops to 0.2% and no charges for drawdown. So costs would be similar.

peterg1965

cmundo said:

shortseller09 said:

peterg1965 said:

Supermarket type SIPPS don’t usually offer access to fixed rate deposit accounts. As has been stated a full SIPP usually does.  I am with InvestAcc Minerva SIPP and currently have all of my holdings, £220k, in fixed rate deposit accounts fixed at 4.3% Pa.  you can now get 5% Pa with a 1, 2 or 3 year fixed rate SIPPable deposit account with United Trust Bank and Punjab Bank - which are the current two best payers in this area - both covered by FCSC.

This really suits me at the moment and with my mix of DB and DC pensions it makes sense for me to take the risk and uncertainty out of my investments to provide real confidence that I will make my retirement plans and maintain the financial position I want to sustain my future requirements and plans. I was getting frustrated by the rollercoaster ride with OEICs.

I have now put my employer DC scheme funds into a low risk money market market fund and delighted to see it rise consistently every day!

Investacc Minerva SIPP also offers third party cash management platforms e.g. Insignis, which gives a much broader spread of providers. Insignis currently offer a 1 year fix with 4 or 5 different providers at 6%. There is a maximum fee of 0.25%, so worst case net 5.75%.

Just out of interest how can you view which fixed term deposits are available through Investacc?

I have always used Investsense.co.uk website to get the best available rates and then applied through the Minerva SIPP team.  I don't know what their criteria is but have never been refused an application for a deposit account with a  UK registered bank

Linton

Surely there must be some downside with Minerva compared with the standard platforms.  Facilities? Range of investments?

Albermarle

Linton said:

Surely there must be some downside with Minerva compared with the standard platforms.  Facilities? Range of investments?

From what I understand from their website but an actual MInerva customer may correct any misunderstandings.
 They are a pensions administrator as opposed to an investment platform offering pensions.
They do not seem to offer any investments directly. The idea seems to be that you have an account with an investment platform, or DFM etc and these are held within the Minerva SIPP, alongside deposit accounts, commercial property etc  
If you have the simpler SIPP LITE, you can hold an investment account or a deposit account , but not both.

stoem

Doctor_Who said:

stoem said:

artyboy said:

Of course the alternative here if the OP has a more 'standard' SIPP already is to put the funds in a sterling money market fund - it's not exactly the same as a fixed term savings account, but it will pay close to base rate, and the capital risk is (IMO) negligible.

Saves the need to open a more niche SIPP...

That’s basically what I had in mind. A product inside a SIPP that pays a similar fixed rate to a run of the mill cash ISA or fixed term savings account. It doesn’t have to be a ‘savings account inside a SIPP’’ setup. 

Or to put it another way: I’d like to de-risk some of my pension fund and take a 6% return over say two years. Then rethink/restructure after that time. 

Are you likely to be taking money out of the SIPP anytime soon? I have some of my SIPP invested in a short term money market fund, but this is only the money I plan to withdraw over the next couple of tax years; most of my SIPP is still invested in equities/bonds.

 Then rethink/restructure after that time. 

Does this mean you are trying to 'time the market', which rarely works for retail investors.

No not time the market but since savings accounts offer ~6% fixed over two years I wondered if I can do something similar inside a SIPP. I had hoped it wouldn't be difficult but the replies have given me some ideas.

peterg1965

Albermarle said:

Linton said:

Surely there must be some downside with Minerva compared with the standard platforms.  Facilities? Range of investments?

From what I understand from their website but an actual MInerva customer may correct any misunderstandings.
 They are a pensions administrator as opposed to an investment platform offering pensions.
They do not seem to offer any investments directly. The idea seems to be that you have an account with an investment platform, or DFM etc and these are held within the Minerva SIPP, alongside deposit accounts, commercial property etc  
If you have the simpler SIPP LITE, you can hold an investment account or a deposit account , but not both.

As a Minerva client, that is precisely what they are.

GSP

It may be worth looking at fixed term annuity’s and a thread here.
https://forums.moneysavingexpert.com/discussion/6454958/annuity-s-becoming-more-attractive/p1

Depends on your age, but there was a poster who invested so much for 3 years and got x p.a., but it worked out about 5% p.a. with all the original investment back after the three years. And that was before the latest increase in rates.