SIPP - Fixed Term Deposits

geoffarnie

With non-pension funds now able to get 6% pa gross returns, I would like to put part of my pension fund into a SIPP and invest part of that into a fixed-term deposit.

However, while this seems to be theoretically possible, I can't seem to find any SIPP providers that will admit to allowing fixed-term investments. Can anyone help with a recommendation for a SIPP provider and the fixed-term deposit provider that they find acceptable.

dunstonh

I can't seem to find any SIPP providers that will admit to allowing fixed-term investments. 

Are you looking at full SIPPs, platform SIPPs or providers that call their product a SIPP when it really isnt?

 Can anyone help with a recommendation for a SIPP provider and the fixed-term deposit provider that they find acceptable.

You need an open architecture (full) SIPP.

However, you may find it simpler to use Royal London Money Short Term Money Market fund.  Just over 5% currently and available on any platform SIPP.  Platform SIPPs tend to be a bit cheaper and simpler to use than full SIPPs.  However, there are some posters here who use Open Architecture SIPPs with savings accounts and they will be along shortly to give their experience.

Pat38493

I am using the Royal London MM fund mentioned above to have a part of my pension in "cash", but the returns are basically tracking the SONIA rate so it's variable based on BOE rates - if you really need fixed term then see above^^

By the way, based on another thread running today, if you have many years still to run before you want to take the money out (more than 10 years definitely but even maybe 5 or more years), it might not be the best decision to remove money from equity investments in order to do this as you might miss out on big gains when the market takes off again, as it has always done in the past.

Albermarle

This Sipp is often mentioned for holding savings accounts.
InvestAcc Pensions - award winning SIPP and SSAS services : InvestAcc Pension Administration

geoffarnie

Thanks to both of you. That's really helpful. As background, I am retired so looking to be less risk-averse by moving part of my pension portfolio into a SIPP where I can invest at least part of it into "cash". This doesn't need to be fixed deposit, I'm happy for it to basically be invested at the SONIA rate at present.

I completely understand the last point about missing out on the potential in equity markets and I wouldn't be leaving these alone altogether, just diversifying and reducing overall risk. My feeling is that I would be content with a 5% pa return on my pension portfolio for now, so it seems foolish to have too much exposure to the negative side of equities at this time.

Any other advice on best SIPP providers (platform SIPP is fine, the lower charges the better) for the Royal London fund would be most welcome.

Albermarle

Any other advice on best SIPP providers (platform SIPP is fine, the lower charges the better) for the Royal London fund would be most welcome

They all have slightly different charging structures, and it depends quite a lot on the size of the funds you are talking about?

Also what pension do you have now? Some have their own money market funds ( like Scottish widows, Standard Life etc ) so maybe not necessary to transfer.

geoffarnie

My pension fund is with Quilter in their 60/40 portfolio. Total value is around £650k. From my initial chat with my IFA, I don't believe that Quilter offer a fixed-term deposit option and he didn't mention a Money Market Fund as an option. I am waiting for him to come back to me with options to adopt a more risk-averse strategy. However i am interested in a SIPP option which offers for a decent "cash" fund initially for just part of my overall pot.

dunstonh

My pension fund is with Quilter in their 60/40 portfolio. Total value is around £650k. From my initial chat with my IFA,

Are you sure its an IFA?
Quilter platform is available to IFAs but IFAs would typically use it as a whole of market platform. 
Quilter also operate in-house FAs and they use their own brand funds/portfolios.    Whilst those are available to IFAs as well, you wouldn't expect an IFA to use them.

 I don't believe that Quilter offer a fixed-term deposit option and he didn't mention a Money Market Fund as an option. 

An IFA would have that option on the quilter platform but one of their in-house FAs may not.    There are multiple short term money market funds available on the quilter platform for IFAs.

geoffarnie

Well that's interesting. My adviser was the owner of Holborn Financial, based in Wimbledon, which is a "chartered financial planning business", so presumably not an IFA which always I assumed it was. That's not to say I have necessarily been misled as that may have been made clear to me when I first spoke with him - I really can't remember, I would have to look back through old documents.

geoffarnie

On checking, they are certainly FCA registered and my client agreement shows that they "offer independent advice", but I cannot see anything on their website or in the paperwork that specifically states they are an IFA and I don't see the logo anywhere. Unbiased.co.uk shows them as an IFA, so I guess they are.

I don't quite understand the comment about the Quilter platform, specifically the "whole of market" part but investments within my portfolio include funds from Fidelity and Vanguard among others. Maybe that clarifies things ??

dunstonh

I don't quite understand the comment about the Quilter platform, specifically the "whole of market" part but investments within my portfolio include funds from Fidelity and Vanguard among others. Maybe that clarifies things ??

They are IFAs looking at their details.      it was your reference "My pension fund is with Quilter in their 60/40 portfolio.    IFAs don't typically use the Quilter portfolios as they are designed to be used by Quilter FAs.

Quilter platform is whole of market.  i.e. all the funds made available on the open market.  You can hold around 30,000 different investments on it.     So, the RL STMM fund is on there.