Fund with growth interest on SIPP

egroeg1980

Hello MSE Forum.

I am doing a bit of pension fund(s) housekeeping. I've identified a few funds that I plan to sell due to longer term strategy and higher fees on the funds (I use AJ Bell as my trade platform).

The total of the funds I am selling is about £17k and I havent yet identified what I plan to purchase.

Does anyone know of a good stable low fee fund that generates just cash interest whilst I am planning? 17k just in my SIPP wont acquire any std interest, so I'd rather put it to work than leaving it stale, but I'd need to buy a cash equivalent fund of sorts - not something I've done before.

It would only be a few months up until I have done my research and ready to re-invest.

Exodi

I don't bank with AJ Bell, but some providers pay interest on cash held within investment accounts.

A quick google search shows this may also be the case with AJ Bell:

https://www.ajbell.co.uk/sites/default/files/AJBell_Interest_rates_we_pay_on_cash.pdf

On a more general note, I'd suggest it's better to wait to sell funds only when you know what you plan to re-invest in, and not create a situation where you're out of the market for several months. There's no telling what the market could do in those few months, it could cost you thousands and is a completely unnecessary risk to take.

eskbanker

egroeg1980 said:

Does anyone know of a good stable low fee fund that generates just cash interest whilst I am planning?

Short term money market funds from the likes of Royal London are likely to fit this requirement, aiming to track SONIA.

ColdIron

AJ Bell pay interest on cash held on account. 3.20% to 3.70% for a SIPP. Might be your best bet with no fund custody fees

https://www.ajbell.co.uk/charges-and-rates/interest-rates

Beddie

I use this fund, pays over 5% currently:

https://www.ajbell.co.uk/market-research/FUND:B8XYYQ8