Savings fund in a SIPP?

k6chris

Dumb question time, but is there an equivalent of a fixed rate savings option available within a SIPP or S&S ISA?  Somewhere to park some funds where (for whatever reason) you don't want them invested in shares, but do want some kind of return.

Thanks

Alistair31

Money market funds (MMF)? Although not fixed, these will reliably deliver returns close to the base rate. 

Personally I use VASTMGA in my S&S ISA. 

Not advice, do your own research etc

zagfles

Or you could use short dated gilts. They'll give you a guaranteed fixed return if held to maturity. 

ColdIron

As SIPPs are meant for long term investments they would usually not be cash as it is unlikely to keep up with inflation. Some providers will pay interest on uninvested cash but like everywhere the rates are decreasing. Gilts maybe? Short term money market funds?

As for an ISA, if you want to use cash then a cash ISA would seem to be a marriage made in heaven

On-the-coast

I use a royal London short term money market fund for this purpose in my SSISA 
RLCBTY
gives a decent rate of interest.  Not as good as fixed rate cash isas but very flexible. 

Albermarle

You can hold regular savings accounts ( fixed term, easy access etc) in a SIPP, but this facility is not offered by the usual mainstream providers. So you need a niche provider, for example Minerva SIPP | InvestAcc Pension Administration : InvestAcc Pension Administration

eskbanker

ColdIron said:

As SIPPs are meant for long term investments they would usually not be cash as it is unlikely to keep up with inflation.

That's undoubtedly true during the accumulation phase, but less so when decumulating, when sequence of returns risk comes into play and it becomes more important to reduce exposure to volatility.

And on the subject of cash returns versus inflation, perhaps OP was influenced by this week's Martin Lewis TV show, where the (unusual) inversion of the norm during 2024 was presented:

Sam_666

MM are not savings  accounts.  Anyone thinking otherwise lacks serious understanding of investing.

aroominyork

Sam_666 said:

MM are not savings  accounts.  Anyone thinking otherwise lacks serious understanding of investing.

How to you define 'savings'?

dunstonh

Dumb question time, but is there an equivalent of a fixed rate savings option available within a SIPP or S&S ISA? 

Yes for a SIPP (real SIPPs not ones pretending to be a SIPP).  No for an ISA as you would just transfer it to a fixed term deposit ISA.

Sam_666

aroominyork said:

Sam_666 said:

MM are not savings  accounts.  Anyone thinking otherwise lacks serious understanding of investing.

How to you define 'savings'?

Is this wind-up?
If you dont know what savings account is, this is wrong place to ask.