Poor paying SIPP cash accounts could be costing consumers around £580m per year, James Hay calculates.
The SIPP provider says investors should be aware of the varying cash rates offered by providers, particularly in light of the current market uncertainty.
It says market volatility is driving SIPP investors to move segments of their portfolios into cash, a so-called safer haven.
With the average SIPP cash balance estimated at £46,500, it argues, up to 300,000 investors could be missing out on around £1,930 per year between the lowest and highest rates.
Chris Smeaton, propositions & eCommerce manager at James Hay, says: “Cash rates are now becoming a key focus in SIPPs as investors increasingly asset allocate to the safer havens of cash. In a lower return environment, these differences in cash rates are quite substantial.
“Our research shows around 15% of SIPP portfolios are held in cash, and investors need to consider cash rates when they choose a SIPP.”
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