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Advisers not getting best deal for pension clients’ cash deposits, says Investec

A third of pension advisers think their clients are earning less than 6 per cent interest on Sipp and Ssas cash deposits according to Investec.

Research conducted for Investec shows that nearly two in five advisers blame the administrative burden for failure to move clients’ Sipp and Ssas cash to more competitive rates.

The survey, which was conducted among pension advisers, managers and trustees, also reveals that 32 per cent of these advisers are unaware of the rate of interest they receive for their clients’ cash in these funds.

The survey also found that 7 per cent of advisers are likely to remain loyal to a product’s other benefits, even if it pays an uncompetitive rate.

Investec Private Bank head of banking Linda McBain says: “A high proportion of pension fund cash is languishing in accounts offering relatively poor rates of return.

“Following a succession of Base Rate changes over the last year or so, there are now a number of deposit accounts paying significantly more than 6 per cent. However, while it’s crucial to check the headline rate, those depositing cash must ensure that the account is transparent in terms of fees and that it pays a consistently competitive rate.”


Wrapped attention

Last week, I looked at how the proposed capital gains tax changes might influence the choice of an investment wrapper. At a superficial level, the proposed new flat rate of 18 per cent looks to be significantly more desirable than a 40 per cent income tax charge and even a 20 per cent income tax charge. I suspect it is this that has led to the conclusion reached by some of bonds being dead in the water.

LibDems call for short-term nationalisation of Northern Rock

Opposition parties have called on Gordon Brown to make an urgent statement to Parliament regarding Northern Rock with the LibDems suggesting nationalisation may be the best way forward.LibDem acting leader and shadow chancellor Vince Cable will table an urgent question today in Parliament calling on the Government to explain itself. He says the least worst […]

Virgin favourite to land Northern Rock

Virgin is the frontrunner to takeover Northern Rock after the lender announced it was taking forward discussions on an accelerated basis with the consortium led by Virgin Group.

Low bids see Rock’s share price plunge

Northern Rock’s share price fell to an all-time low on Monday after the firm said potential bids valued it at “materially below” its market price.A Treasury statement saying it might not guarantee the Bank of England’s loans past February helped spark the sell-off although the Treasury signalled that it was willing to discuss any proposals […]


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