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Fixed rate deposits in SIPP drawdown
johnedwards3005
Posts: 37 Forumite
My SIPP drawdown provider is quite restrictive in allowing cash to be held outside its own instant access deposit with Bank of Scotland, which pays 0.25% below base rate on large balances.
Anticipating falling rates, I am seeking to fix a proportion of this for a year (the longest they will allow), but although there are plenty of attractive bonds on retail offer (at around 6.75% pa), I can find only one (again with Bank of Scotland) which meets the provider's requirements:
a) fixed term (and rate) up to 12 months, but allowing return of capital within 7 days if required (even with a penalty);
b) with a UK institution; and
c) accepting corporate applications (in the name of the SIPP Trustees).
It seems to be c) which disqualifies most interesting offers. As I would like a choice, does anyone have experience of other reliable institutions meeting these requirements?
Anticipating falling rates, I am seeking to fix a proportion of this for a year (the longest they will allow), but although there are plenty of attractive bonds on retail offer (at around 6.75% pa), I can find only one (again with Bank of Scotland) which meets the provider's requirements:
a) fixed term (and rate) up to 12 months, but allowing return of capital within 7 days if required (even with a penalty);
b) with a UK institution; and
c) accepting corporate applications (in the name of the SIPP Trustees).
It seems to be c) which disqualifies most interesting offers. As I would like a choice, does anyone have experience of other reliable institutions meeting these requirements?
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Comments
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Most of the SIPPs I've seen which allow a broader range of cash options have higher fees which tend to wipe out the advantage. IIRC the Newcastle BS had one that might be worth checking: it may be a better deal now with higher interest rates.Trying to keep it simple...
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