Confused about HL SIPP Interest earned

JohnB47

Perhaps someone with a Hargreaves Lansdown SIPP can help here.

A recent thread encouraged me to look at the wife's cash only SIPP (in drawdown) and the interest payments relating to it. I've gone into the account and I can see regular interest payments and wondered where they were actually going - not the nominated bank account, where monthly drawdown amounts go ( would have spotted this in the bank account).

I can see interest and drawdown payments and by looking under the Transaction History tab but I can't find any 'view' where I can see the capital amount and interest payments together, so that I can see how the capital is growing month by month.

So I went into the Income Instructions and I'm even more confused. Maybe Interest isn't treated as Income? Anyway, the instructions say:

"How do the income instructions work?

Within the first ten working days of each month we shall treat any income received from your investments in line with the option you select. There are three income options:

Held on account: we shall transfer your income to your capital account where it will be available to invest when you choose.

Automatically re-invested: we will reinvest any income automatically for you when it reaches £10 (or your chosen minimum) per holding. Automatic re-investments take place between the 11th and 21st of the month.

Paid out: your income will be paid to your Nominated Bank Account."

However, there are only two options available to select - Held On Account (with is ticked) and Automatically Reinvested, not ticked. There is no Paid Out option to select.

So, is the interest going into the SIPP? Remember, this is actually a SIPP in drawdown, so that seems odd. If not, where is it going and how can I see that.

Thanks.

Edit: Also, the interest amounts are seem to be above the 3% of Capital that I was expecting. Why is that?

FIREDreamer

The interest is added to the SIPP. Nothing is paid out as drawdown unless you tell them.

tigerspill

My wife has a cash SIPP with HL and the interested is just added to her SIPP account.

JohnB47

Thanks guys. That clears that up. Annoying that I can't see a view where it shows the capital and regular interest payments together.

Hoenir

JohnB47 said:

Thanks guys. That clears that up. Annoying that I can't see a view where it shows the capital and regular interest payments together.

Somewhere on the account there will be a cash transaction page. Showing all cash movements in and out. 

zagfles

JohnB47 said:

Perhaps someone with a Hargreaves Lansdown SIPP can help here.

A recent thread encouraged me to look at the wife's cash only SIPP (in drawdown) and the interest payments relating to it. I've gone into the account and I can see regular interest payments and wondered where they were actually going - not the nominated bank account, where monthly drawdown amounts go ( would have spotted this in the bank account).

I can see interest and drawdown payments and by looking under the Transaction History tab but I can't find any 'view' where I can see the capital amount and interest payments together, so that I can see how the capital is growing month by month.

So I went into the Income Instructions and I'm even more confused. Maybe Interest isn't treated as Income? Anyway, the instructions say:

"How do the income instructions work?

Within the first ten working days of each month we shall treat any income received from your investments in line with the option you select. There are three income options:

Held on account: we shall transfer your income to your capital account where it will be available to invest when you choose.

Automatically re-invested: we will reinvest any income automatically for you when it reaches £10 (or your chosen minimum) per holding. Automatic re-investments take place between the 11th and 21st of the month.

Paid out: your income will be paid to your Nominated Bank Account."

However, there are only two options available to select - Held On Account (with is ticked) and Automatically Reinvested, not ticked. There is no Paid Out option to select.

So, is the interest going into the SIPP? Remember, this is actually a SIPP in drawdown, so that seems odd. If not, where is it going and how can I see that.

Thanks.

Edit: Also, the interest amounts are seem to be above the 3% of Capital that I was expecting. Why is that?

Interest is 3.4% on SIPP drawdown accounts (on the first £10k) 

Interest rates for HL Accounts | Hargreaves Lansdown

JohnB47

zagfles said:

JohnB47 said:

Perhaps someone with a Hargreaves Lansdown SIPP can help here.

A recent thread encouraged me to look at the wife's cash only SIPP (in drawdown) and the interest payments relating to it. I've gone into the account and I can see regular interest payments and wondered where they were actually going - not the nominated bank account, where monthly drawdown amounts go ( would have spotted this in the bank account).

I can see interest and drawdown payments and by looking under the Transaction History tab but I can't find any 'view' where I can see the capital amount and interest payments together, so that I can see how the capital is growing month by month.

So I went into the Income Instructions and I'm even more confused. Maybe Interest isn't treated as Income? Anyway, the instructions say:

"How do the income instructions work?

Within the first ten working days of each month we shall treat any income received from your investments in line with the option you select. There are three income options:

Held on account: we shall transfer your income to your capital account where it will be available to invest when you choose.

Automatically re-invested: we will reinvest any income automatically for you when it reaches £10 (or your chosen minimum) per holding. Automatic re-investments take place between the 11th and 21st of the month.

Paid out: your income will be paid to your Nominated Bank Account."

However, there are only two options available to select - Held On Account (with is ticked) and Automatically Reinvested, not ticked. There is no Paid Out option to select.

So, is the interest going into the SIPP? Remember, this is actually a SIPP in drawdown, so that seems odd. If not, where is it going and how can I see that.

Thanks.

Edit: Also, the interest amounts are seem to be above the 3% of Capital that I was expecting. Why is that?

Interest is 3.4% on SIPP drawdown accounts (on the first £10k) 

Interest rates for HL Accounts | Hargreaves Lansdown

Ah yes, I was looking at the non drawdown SIPP interest rate (3%). Thanks.

Also "Somewhere on the account there will be a cash transaction page. Showing all cash movements in and out.". Yes, that's the Transaction History tab but it just gives the current capital and lists previous movements in and out. I was hoping for a listing showing the capital amount slowly ticking down over each month. Not a worry now that I know that interest is definitely going into that account.