Scottish Widows, Irish Nationwide and Investec Bank have the best interest rates on their SIPP cash accounts but shopping around is essential, according to Defaqto.
Its latest report reveals the average default cash account interest rate is a meagre 0.21% on a £5,000 balance, with rates varying wildly between providers. "SIPPs tend to have a default account into which cash holdings are deposited and some SIPPs only permit cash holdings to be held in their specified default cash account," says David Abbis, insight analyst for wealth management at Defaqto. "Where the SIPP does permit external cash accounts to be used, advisers should be looking for better returns on cash holdings and not accept the low default rates. "In any case, SIPP default a...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
