Ascentric is launching a deposit account from Investec to tap into the growing appetite for cash as investors shun volatile equity markets.
The 30 Day Notice Account provided by Investec Private Bank is initially available to SIPP and SSAS investors only. It will sit alongside the cash and fixed term deposits on the platform.
Rates on the account range from 1.98% to 2.96%, depending on the balance (gross monthly).
Lionel Ross, pension and trust specialist at Investec Private Bank, says: "Over the last two years or so many investors have increased the cash allocation of their pension fund to reduce their exposure to volatile equity markets.
"However, our research shows that most SIPPs are offering poor returns on the cash element of the funds and even those with larger cash balances cannot guarantee a competitive rate of interest."
Richard Goodall, Ascentric sales director, adds: "We have had increasing calls from our users for an accessible deposit account paying competitive rates of interest. The launch of this Investec Notice Account adds greater diversification to our proposition and will mean advisers can offer more cash-based options to their clients."
Features of the 30 Day Notice Account include:
- Minimum balance £25,000, no maximum;
- Minimum withdrawal £5,000;
- Indicative rates range from 1.98% to 2.96% currently depending on balance (gross monthly);
- Charge per investment / withdrawal £20.
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