Interest Rates on SIPP deposits

09-03-2009

 

With the Bank of England Base Rate being hammered down to its lowest level since the bank was established in 1694 many SSAS and SIPP investors will have seen the rate paid on their cash holdings fall to zero.

Some SIPP providers also restrict their clients to the default bank account or make additional charges for setting up alternative banking arrangements. Holders of a full SIPP or SSAS with Westerby are however free to shop around to obtain the best rates available and we usually make no additional charge for setting up alternative accounts.

It is possible to find institutions who are still offering rates in excess of 3% for SSAS and SIPP deposits, particularly if the funds can be locked in for a fixed term. Of course security of deposits is equally as important as the interest rate offered and both advisers and SIPP members will need to give this serious consideration before making a decision.

Please also note that our default banks offer easy access to their own term deposit facilities.

Contact Ian Jarvis or Jinal Sachdev if you require any further information on this subject.