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  • FIRST POST
    • peterg1965
    • By peterg1965 28th Aug 18, 12:11 PM
    • 2,030Posts
    • 1,716Thanks
    peterg1965
    SIPPs which offer access to cash deposit accounts
    • #1
    • 28th Aug 18, 12:11 PM
    SIPPs which offer access to cash deposit accounts 28th Aug 18 at 12:11 PM
    Are there any SIPPs which offer access to cash savings accounts which are accessible without going through an IFA?


    Having read a few old articles on this it would appear that you need a 'Full SIPP'. I want to move my HL SIPP into cash for two years and the rates available from HL are not competitive in comparison to what is available outside of a SIPP.
Page 2
    • peterg1965
    • By peterg1965 4th Sep 18, 10:26 AM
    • 2,030 Posts
    • 1,716 Thanks
    peterg1965
    Thanks all.


    I contacted InvestecAcc pensions todays and I am impressed with their relatively simple SIPP model. I am setting up a Minerva SIPP with them and transferring my HL SIPP, c212,000. I need to sell all of the current OEICs first, so that will be the longest part of the process.


    There are no charges for a transfer in and a flat rate of 480(inc VAT) per year, and no other charges which sounds reasonable. Once the SIPP is up and running I am applying to open three fixed rate savings accounts and will take out 3 x two year fixed rates bonds as follows:


    Investec @ 1.85% gross pa (80,000)
    Close Brothers Savings @ 1.8% (66,000)
    United Trust Bank @ 1.8% (66,000)
    (All FCSC protected)


    Then I will continue to contribute 1275/net a month and trickle all those contributions into a Mansfield Building Society 90 day SIPP Trust notice account @ 1% pa. Plus I will probably make an additional 2k lump sum addition.


    So, in 2 years (provided tax relief rules are not changed) I will have approx. 262,500 at the point I wish to crystallise and take the 25%PCLS. Which is where I wanted to be and at absolute minimal risk. This will take up a further c24.5% of my LTA, leaving me with 14% left, and once that is used up its probably time to retire!
    • Gatser
    • By Gatser 5th Sep 18, 6:16 AM
    • 593 Posts
    • 221 Thanks
    Gatser
    Welcome!
    Peterg: welcome to the Minerva club!
    Thanks for your feedback too.... I have just moved
    Some cash into the Investec 1.85% deposit too!
    THE NUMBER is how much you need to live comfortably: very IMPORTANT as part 1 of Retirement Planning. (Average response to my thread is 26k pa)
    My Other NUMBER: ZERO Working Days to SEMI-retirement: Achieved!
    • peterg1965
    • By peterg1965 10th Oct 18, 2:55 PM
    • 2,030 Posts
    • 1,716 Thanks
    peterg1965
    Just to add to this thread.

    My MINERVA SIPP is now up and running HL funds transferred, with all but one fixed rate deposits in place with external banks. I am a lot happier that I can reach my short term goal with respect to my SIPP with practically nil risk, getting a guaranteed near 2% return over the next 2 years to get me to 55 is spot on.

    All in all, a very efficient service and I am very pleased overall. The online portal isn't up to much, but then again you wouldn't expect it to as its not a fund supermarket like HL.

    My only outstanding query is the outstanding tax relief on deposits made to my HL SIPP back in July/August, I am hoping that HL will automatically transfer them on to InvestAcc to go into my SIPP cash account, but no sign of that yet.

    Anyway, this is recommended route if anyone else is in a similar situation, as the big name SIPPs fail to offer access to fixed rate deposits.
    • robber2
    • By robber2 11th Oct 18, 5:37 PM
    • 430 Posts
    • 380 Thanks
    robber2
    Hi Peter, thanks for blazing the trail on this.



    I'm at the point of retiring now, have grabbed my 25% TFLS but don't need to dip into my drawdown funds for a while. Now that I'm no longer in the accumulation phase and wanting to preserve what I've got I've been getting increasingly frustrated at being unable to 'invest' in cash with H&L at anything other than their derisory cash account rate. The Minerva SIPP looks to be ideal.



    You don't mention whether InvestAcc have any kind of dealing platform or online account . If not how to you go about instructing them to make the deposits for you?



    regards


    Rob
    • xylophone
    • By xylophone 11th Oct 18, 7:41 PM
    • 31,458 Posts
    • 19,493 Thanks
    xylophone
    You don't mention whether InvestAcc have any kind of dealing platform or online account . If not how to you go about instructing them to make the deposits for you?
    The online portal isn't up to much, but then again you wouldn't expect it to as its not a fund supermarket like HL.
    https://www.investaccpensions.co.uk/existing-customers/sipp-members/

    Sounds rather clunky when compared with HL but if Peterg only wants to hold cash for a couple of years this should not matter too much?
    • OldMusicGuy
    • By OldMusicGuy 11th Oct 18, 7:53 PM
    • 1,086 Posts
    • 2,265 Thanks
    OldMusicGuy
    Interesting. I am holding a big chunk of cash in my HL SIPP for similar reasons (I have an even bigger chunk invested for the long term). I could move the cash to InvestAcc or Close and get some interest on it. Well worth looking into, thanks for the heads up.
    • peterg1965
    • By peterg1965 12th Oct 18, 6:33 AM
    • 2,030 Posts
    • 1,716 Thanks
    peterg1965
    Basically the SIPP cash is held in a Metro Bank account and attracts 0.55% interest if it just sits there. I selected the external SIPP deposits I wanted, got the application forms, filled in my bits and send to InvestAcc and then they deal directly with the banks as the adminsitrator on my behalf. The basic online portal shows where you money is.

    With interest rates likely to slowly creep up, I can see myself staying in fixed rate cash accounts for the foreseeable future and into drawdown when I start in 4/5 years time. I have no need to take unnecessary risks as the majority of my retirement income will be from a DB pension.

    The top rate for a fixed rate 5 year SIPP cash bond is currently 2.25%, if this creeps up towards 3-3.5% over the next few years, I will definitely be using a fixed rate strategy. I like the certainty and lack of risk.
    • timodell
    • By timodell 12th Dec 18, 9:37 AM
    • 33 Posts
    • 14 Thanks
    timodell
    Thanks all.


    I contacted InvestecAcc pensions todays and I am impressed with their relatively simple SIPP model. I am setting up a Minerva SIPP with them and transferring my HL SIPP, c212,000. I need to sell all of the current OEICs first, so that will be the longest part of the process.


    There are no charges for a transfer in and a flat rate of 480(inc VAT) per year, and no other charges which sounds reasonable. Once the SIPP is up and running I am applying to open three fixed rate savings accounts and will take out 3 x two year fixed rates bonds as follows:


    Investec @ 1.85% gross pa (80,000)
    Close Brothers Savings @ 1.8% (66,000)
    United Trust Bank @ 1.8% (66,000)
    (All FCSC protected)


    Then I will continue to contribute 1275/net a month and trickle all those contributions into a Mansfield Building Society 90 day SIPP Trust notice account @ 1% pa. Plus I will probably make an additional 2k lump sum addition.


    So, in 2 years (provided tax relief rules are not changed) I will have approx. 262,500 at the point I wish to crystallise and take the 25%PCLS. Which is where I wanted to be and at absolute minimal risk. This will take up a further c24.5% of my LTA, leaving me with 14% left, and once that is used up its probably time to retire!
    Originally posted by peterg1965

    Only quibble I have with this strategy is why you are using the Mansfield BS 90-day notice account paying 1.0% for your incremental cash when you could use the NS&I no-notice Income Bonds which pay 1.15% and obviously have unlimited government protection...?
    • robber2
    • By robber2 18th Dec 18, 12:47 PM
    • 430 Posts
    • 380 Thanks
    robber2
    My InvestAcc SIPP is now open and fully funded but I'm having trouble finding good fixed rate accounts to invest with. The problem is that most are online applications only. To open the accounts within my SIPP I need to find providers who will accept paper applications.



    Whilst PeterGs selection here;

    Investec @ 1.85% gross pa (80,000)
    Close Brothers Savings @ 1.8% (66,000)
    United Trust Bank @ 1.8% (66,000)
    (All FCSC protected)


    was good at the time Investec is the only one that is still offering an attractive interest rate.


    Anyone know any good paying bonds / term accounts which accept postal applcations?





    thanks


    Rob
    • timodell
    • By timodell 18th Dec 18, 7:24 PM
    • 33 Posts
    • 14 Thanks
    timodell
    Bath Building Society 83,000 1 year 1.70%
    Metro Bank 83,000 18 mths 1.95%
    United Trust 82,000 2 year 1.60%
    Investec Bank UK 82,000 2 year 1.95%
    Hodge Bank 83,000 3 year 1.80%
    Punjab National Bank 83,000 4 year 2.00%
    Close Brothers 83,000 5 year 1.90%
    State Bank of India 83,000 5 year 2.00%
    NS&I Gntd Growth Bond 10,000 3 year 1.95%
    NS&I Gntd Income Bond 10,000 3 year 1.92%
    NS&I Income Bonds 201,000 1.15%
    Metro Bank Cash 1110.55%
    TOTAL 883,1112.3 1.70%


    These are the accounts I have recently opened (still all available as far as I know)
    Last edited by timodell; 18-12-2018 at 7:29 PM.
    • robber2
    • By robber2 18th Dec 18, 10:14 PM
    • 430 Posts
    • 380 Thanks
    robber2
    thanks Tim,


    have you opened all of these by post?



    regards


    Rob
    Last edited by robber2; 18-12-2018 at 10:17 PM.
    • mcc100
    • By mcc100 28th Sep 19, 3:15 PM
    • 564 Posts
    • 643 Thanks
    mcc100
    Basically the SIPP cash is held in a Metro Bank account and attracts 0.55% interest if it just sits there. I selected the external SIPP deposits I wanted, got the application forms, filled in my bits and send to InvestAcc and then they deal directly with the banks as the adminsitrator on my behalf. The basic online portal shows where you money is.
    Originally posted by peterg1965
    My intention is to take part, or possibly all, of my TFLS on my 55th birthday in a couple of months time and then transfer my pension to the Minerva SIPP.

    I assume that once the transfer has taken place there will be a short period of time that my money will be sat in the Metro Bank account until the transfer to my selected bank accounts takes place.

    As I'll be transferring approximately 300k I'm concerned that only 85k will be covered by the FSCS, and wondered if there is any way to protect my money during this time.
    Last edited by mcc100; 28-09-2019 at 3:26 PM.
    • goRt
    • By goRt 29th Sep 19, 7:01 AM
    • 274 Posts
    • 160 Thanks
    goRt
    As I'll be transferring approximately 300k I'm concerned that only 85k will be covered by the FSCS, and wondered if there is any way to protect my money during this time.
    Originally posted by mcc100
    There's a special provision in the FSCS compensation scheme to cover events like this, the limit's lifted to 1m for 6 months.

    https://www.fscs.org.uk/your-claim/temporary-high-balances/
    • mcc100
    • By mcc100 29th Sep 19, 7:16 AM
    • 564 Posts
    • 643 Thanks
    mcc100
    There's a special provision in the FSCS compensation scheme to cover events like this, the limit's lifted to 1m for 6 months.

    https://www.fscs.org.uk/your-claim/temporary-high-balances/
    Originally posted by goRt
    Thanks goRt, this is exactly what I was looking for.
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