Question
Which SIPPs allow Interest earning Bank deposits in its Investment Platforms?Answer
Almost all 'low cost' SIPPs restrict customers to a single cash account paying little or no interest. The simple reason being it's very profitable for the SIPP provider to do so (they earn a higher rate on the cash and pocket the margin).
The only exception I've found is the James Hay iSIPP, which offers a range of fairly competitive fixed rate accounts from four banks. The downside is that there's a minimum investment of £50,000 per account.
To access the full range of savings accounts available for pension funds (which is still rather limited and uncompetitive compared to conventional savings accounts) you'll need to use a more expensive higher end SIPP (e.g. AJ Bell Platinum SIPP, Alliance Trust Full SIPP). This will typically cost several hundred pounds both to set up and each year as administration fees, so you'll need to factor in these costs when deciding whether it's worthwhile.
Which SIPPs allow Interest earning Bank deposits in its Investment Platforms?Answer
Almost all 'low cost' SIPPs restrict customers to a single cash account paying little or no interest. The simple reason being it's very profitable for the SIPP provider to do so (they earn a higher rate on the cash and pocket the margin).
The only exception I've found is the James Hay iSIPP, which offers a range of fairly competitive fixed rate accounts from four banks. The downside is that there's a minimum investment of £50,000 per account.
To access the full range of savings accounts available for pension funds (which is still rather limited and uncompetitive compared to conventional savings accounts) you'll need to use a more expensive higher end SIPP (e.g. AJ Bell Platinum SIPP, Alliance Trust Full SIPP). This will typically cost several hundred pounds both to set up and each year as administration fees, so you'll need to factor in these costs when deciding whether it's worthwhile.
Read this Q and A at http://www.candidmoney.com/questions/question744.aspx
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