SIPP cash investment

Pensav678

Due to the length of time it’s taken my current SIPP provider to transfer my SIPP which has been sitting as cash since 1/9 to a new provider, I appear to have missed out on the NSI 1 year growth bond, even tho I filled in the NSI forms for my new provider on 13/9. The SIPP transfer being requested the same day.

The SIPP transfer finally was actioned today but will prob take another 3-5 days to reach my new provider. 

Ideally I want to hold the cash in a product like the NSI growth bond rather than just as cash or in a “Fund”.

Accepting I won’t get the same interest on offer through the NSI bond does anyone know of similar products that can be held in my new SIPP.

Thanks in anticipation.

Albermarle

You can not hold products like the NS&I bond in a 'normal' SIPP.

Have you transferred to a more specialised new SIPP where you can hold fixed rate savings accounts? If so you need to find the list of which ones you can hold as there is a limited number.

Pensav678

ABRDN, my “current” provider we’re going to allow the NSI growth bond in my standard SIPP but because of the large charges they take I decide to move it to INVESTACC, who were going to allow it too. I not aware of either being a specialised SIPP. Moot point now tho as the bond is closed.

Albermarle

Investacc are a niche SIPP provider, but are suitable for holding these types of savings accounts.
Only certain savings providers will offer products that can be held in a SIPP. Hopefully someone will come along who knows how to access that list.

coastline

This article is date FEB 2023..

The role of cash in SIPPs as interest rates rise – read an expert opinion - IPM Pensions (ipm-pensions.co.uk)

from the same article another link.

Accounts for SIPPs - Investment Sense

another with similar products.

Cash Accounts & Structured Deposits | Standard Life Adviser

PootleLoop

Hello

We have Investacc SIPPs with property but now that we've paid the mortgages off we are looking at a significant amount of cash that needs a home.  either i have to be bloody brave and go down the whole spread risk fund system with stocks and shares or i put it away as cash.

i'm a fan of slightly decrepit business units as my investment strategy but at the moment i don't want to buy any as i am humming and haaing about when to retire.  i'm only 52 but i could conceivably cut and run early.

So it's about £250k spread between the two of us that's in cash so i would like to put it away for a decent amount of time until i decide what to do.

Can anyone recommend where to put it that Investacc will agree to?

thank you all so much for your knowledge.

NedS

Some SIPP providers offer the ability to buy individual government gilts, which is probably about as close to an NS&I bond as you can get (government backed debt instrument), although the current returns on 1 year gilts (TN25 currently yielding around 4.6%) are nowhere near that recently offered by NS&I (6.2%).

Given rates are likely to stay around their current levels for the next 12 month ("higher for longer"), Sterling short term money market funds matching BoE base rate (5.25%) would seem a more attractive alternative for cash for the next 12 months, although liquidity risks could be a concern if there are high outflows when rates look like they might start to fall.

Albermarle

either i have to be bloody brave and go down the whole spread risk fund system with stocks and shares or i put it away as cash.

At age 52, you may well be taking money from this pension for 30 or 40 years, so you would have to be 'bloody brave' not to invest most of it rather than relying on cash savings, getting devalued by inflation.

PootleLoop

Albermarle said:

either i have to be bloody brave and go down the whole spread risk fund system with stocks and shares or i put it away as cash.

At age 52, you may well be taking money from this pension for 30 or 40 years, so you would have to be 'bloody brave' not to invest most of it rather than relying on cash savings, getting devalued by inflation.

The vast majority of it is invested in other things hence why we have SIPPs.  I would not have a SIPP if it was just cash.  The pensions would have been declared full this year if the rules hadn't changed.

I will research NS&I bonds.  I used to have a grey National Savings Book.  I would be happy with that as a solution    Let's see if Investacc accept that strategy!

shortseller09

As far as I'm aware, you cannot hold NS&I green bonds in a SIPP, the only option is the Income Bond which is a variable rate, currently 3.59%.

Investacc Minerva SIPP offers access to third party cash management platforms. One example is Insignis, which gives a much broader spread of providers, all FSCS protected.

There is a maximum fee of 0.25% (up to £300k), 0.2% for £300k to £1M. Minimum deposit I think is £50k, but you would need to clarify.

As of this morning, it is offering a couple of 1 year fixes at 5.7%, and an 18 month fix at 5.75% (before fee).