SIPP for National Savings
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Posts: 3 Newbie
I want to find a SIPP that I could use to only invest in National Savings and Investments (NS&I) products. I've found a list on InvestmentSense and the info on the NS&I Advisor site but the list is very long and making a few calls has proved very slow.
I know I want NS&I and I also want to keep fees low.
Any advice on which SIPPs to investigate please?
I know I want NS&I and I also want to keep fees low.
Any advice on which SIPPs to investigate please?
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Comments
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I had a quick look through the list. There seem to be no mainstream SIPPs, so you may struggle to get recommendations. The ones I checked are high featured and higher charged SIPPs (typically £400-£500 Annual charge) seemingly suitable for high net worth individuals with complex requirements. Most have fewer than 10,000 customers and most are IFA only.
If you have a very large amount of money in your pot it may be worth going through an IFA. How much do you have?
You should go through the links on the list one by one, there may be something suitable I missed. You shouldnt need to phone them in order to get a good understanding of what is available.0 -
Thanks Linton. I'll have another look perhaps. It was the IFA only part that surprised me - the first few I called would not deal with me directly. And by the way, not a huge pot. I am definitely not a high value individual.0
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In your situation I would look at the Investacc Minerva Sipp. They do not require IFA advice and have one all-in annual charge (pre-drawdown) of £400+vat which will cover multiple cash deposit accounts across the full range of providers including NS&I. In fact, if you only want to use one NS&I account, you can even opt for the Minerva "Lite" account which has a £95 set-up fee and £195 annual charge.1
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In your situation I would look at the Investacc Minerva Sipp. They do not require IFA advice and have one all-in annual charge (pre-drawdown) of £400+vat which will cover multiple cash deposit accounts across the full range of providers including NS&I. In fact, if you only want to use one NS&I account, you can even opt for the Minerva "Lite" account which has a £95 set-up fee and £195 annual charge.
What a helpful reply; hats off!
But if I were non-wealthy - hang on, I am non-wealthy - I'd find an annual charge of £195 rather burdensome.
May I ask the OP: what is the attraction of holding only an ns&i savings account within your SIPP?Free the dunston one next time too.0 -
In your situation I would look at the Investacc Minerva Sipp. They do not require IFA advice and have one all-in annual charge (pre-drawdown) of £400+vat which will cover multiple cash deposit accounts across the full range of providers including NS&I. In fact, if you only want to use one NS&I account, you can even opt for the Minerva "Lite" account which has a £95 set-up fee and £195 annual charge.
Good info, but for the OP you'd need £40k just to break even.
How much would you have in here? Anything under about £50k you might as well just use HL.0 -
True, for pots of under £40,000 or for relatively short-term cash holding, it wouldn't really be worthwhile opting for a fixed fee, full-range SIPP provider. But the measly 0.35% interest rate paid by HL (and most other SIPP providers) soon pales vs the risk-free 1.15% available from NS&I income bonds or the 1.75%+ you can get with 100% government protection if you divide your fund up into £85,000 chunks and use a ladder of fixed-rate bank accounts. At £250,000 you would be around £3,000 a year better off with Minerva and at £1,000,000 the saving would be over £13,000. And obviously you'd also save the 0.45% charge on any funds you chose to own if your attitude to risk changed.
For some, albeit very wealthy, investors, the optimum way to run their portfolios may well be to have all their risk assets in ISAs and all of their cash assets in their SIPP.
https://www.telegraph.co.uk/finance/personalfinance/special-reports/11679102/The-super-safe-pension-that-pays-3pc-a-year.html0 -
If your pot i very small, you would make less from interest than the fees cost. So not really a good idea to use NS and I.
Far better for most with small pots to be invested in finds in some way to grow their pot. Look at the vanguard series at 20-40% equity,0 -
What a helpful reply; hats off!
But if I were non-wealthy - hang on, I am non-wealthy - I'd find an annual charge of £195 rather burdensome.
May I ask the OP: what is the attraction of holding only an ns&i savings account within your SIPP?In your situation I would look at the Investacc Minerva Sipp. They do not require IFA advice and have one all-in annual charge (pre-drawdown) of £400+vat which will cover multiple cash deposit accounts across the full range of providers including NS&I. In fact, if you only want to use one NS&I account, you can even opt for the Minerva "Lite" account which has a £95 set-up fee and £195 annual charge.
I can definitely second the recommendation for a Minerva SIPP. Transferred my HL SIPP in September in order to access SIPP cash deposit accounts. YOU can better the NS&I rates, list of top SIPP cash deposit/bonds here...
Investment sense website.... SIPP cash deposits Best Buy table. (It includes NS&I)
It doesn't suit everyone, but I wanted absolutely certainty on my SIPP funds two years before I am 55. I am getting about 1.9% overall on my £212K, plus still making regular deposits. I am split between three 2 year bonds to keep below FSCS £85K limit and any cash attracts 0.5% which is better than nothing. This means I will reach my goal with virtually zero risk.0 -
Thanks for the very helpful replies.
I need some sort of actual pension fund (hence SIPP) in order to qualify for pension tax relief. I can't just use a bank account.
I'm hoping to retire relatively soon, so in these turbulent times, security (eg unlimited Government backed NS&I) is most important to me. Growth is not important.
Hence thinking that a low-cost SIPP investing in NS&l made sense.
I'd be interested to hear different views.0 -
Thanks for the very helpful replies.
I need some sort of actual pension fund (hence SIPP) in order to qualify for pension tax relief. I can't just use a bank account.
I'm hoping to retire relatively soon, so in these turbulent times, security (eg unlimited Government backed NS&I) is most important to me. Growth is not important.
Hence thinking that a low-cost SIPP investing in NS&l made sense.
I'd be interested to hear different views.
See my post above..... my reasoning was very similar to yours....
What size is your pot0
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