HL SIPP - Fund for Cash

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RD42
RD42 Posts: 76 Forumite
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in Pensions, annuities & retirement planning
Hi All,

I have a largish cash position in my HL SIPP (£120K). I don't feel comfortable putting this into either the stock or bond market at the moment.

It is getting a very low interest rate at the moment from HL. Are there any 100% safe options for a funds available in HL where I could put this cash to get some return? Even 0.5% would be worth having.

Thanks!
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  • ffacoffipawb
    ffacoffipawb Posts: 3,593 Forumite
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    RD42 wrote: »
    Hi All,

    I have a largish cash position in my HL SIPP (£120K). I don't feel comfortable putting this into either the stock or bond market at the moment.

    It is getting a very low interest rate at the moment from HL. Are there any 100% safe options for a funds available in HL where I could put this cash to get some return? Even 0.5% would be worth having.

    Thanks!

    After the 0.45% p.a. fund charge is it worth the bother?
  • RD42
    RD42 Posts: 76 Forumite
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    You are right, I guess it might not be worth doing when considering the fund fee.
  • OldMusicGuy
    OldMusicGuy Posts: 1,761 Forumite
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    As far as I can see there aren't, I have looked. IMO you should leave it where it is. You are either confident enough to invest it and take some form of risk or you need the security of cash. I hold a larger sum than you than as cash in my HL SIPP right now (23% of my pot). I have just retired and will be using that to fund years before SP and also to prevent pound cost ravaging. The remainder is invested long term but I am happy with the security of that cash (costing me nothing to hold in the SIPP) given the increased volatility of the economic situation right now.

    It all depends what your investment objectives are and you risk appetite is. This strategy suits me perfectly right now as I have just retired but I would not be doing this if I was still in the accumulation phase.
  • drphila
    drphila Posts: 289 Forumite
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    2 things:

    You don't have full FSCS cover for that cash, probably only £50k

    You can get reasonable rates on fixed term cash deposits, 1yr + (with £85k FSCS cover), though I don't think HL allow these. Close Brothers offer a low cost SIPP in which you can hold their own fixed term deposits (which the last time I looked were the best on the market)
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    RD42 wrote: »
    I have a largish cash position in my HL SIPP (£120K). I don't feel comfortable putting this into either the stock or bond market at the moment.

    What are your longer term aims for the money?
  • NorthernGeezer_2
    NorthernGeezer_2 Posts: 153 Forumite
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    I was under the impression HL didnt charge for holding cash?
  • Dazed_and_confused
    Dazed_and_confused Posts: 6,458 Forumite
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    What makes you think they do charge?
  • NorthernGeezer_2
    NorthernGeezer_2 Posts: 153 Forumite
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    ffacoffipawb - After the 0.45% p.a. fund charge is it worth the bother?

    RD42 - You are right, I guess it might not be worth doing when considering the fund fee.
  • Dazed_and_confused
    Dazed_and_confused Posts: 6,458 Forumite
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    What have the charges for a fund got to do with a cash holding though?
  • Audaxer
    Audaxer Posts: 3,515 Forumite
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    RD42 wrote: »
    I have a largish cash position in my HL SIPP (£120K). I don't feel comfortable putting this into either the stock or bond market at the moment.
    It does seem a heck of a lot to hold as cash with interest of only 0.05% pa on cash within an HL SIPP. When do you think it would be a good time to invest it?
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