£5bn cash in sipps receiving poor returns

A study carried out by Defaqto for Investec Private Bank reveals only one in ten sipps paid 4% gross annual equivalent rate (AER) or more on cash balances of £25,000 while 16% pay less than 3% gross AER. The vast majority, (90%) pay between 3% and 4%. When considering all balances, the average rate of interest starts at 2.97% for balances of £50 or less and rises to 3.84% for £1m or more, the research adds. Balance held in cash within SippAverage interest rate paid on cash gross AER£1/£502.97%£1,0003.04%£5,000 3.16% £10,0003.26% £25,000 3.42% £100,000 3.77% £250,000 3.78% £1m3.84% Li...