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Hargreaves switches Sipp trustee to boost cash returns

Hargreaves Lansdown has switched the trustee of its Sipp, allowing it to invest in a broader range of assets and boost returns on savers’ cash investments.

According to a letter sent to Sipp customers, Hargreaves Lansdown Asset Management has been appointed Sipp trustee in place of Hargreaves Lansdown Pension Trustees.

The firm says this gives it “access to a wider range of banking services, whilst retaining the same protections for clients”.

The changes take place from 20 April 2015 and will allow Hargreaves to invest in a larger range of fixed-term deposits which it says will allow it to boost interest rates offered on cash held within the Sipp “now and in the future”.

Pension pots up to £5,000 will earn 0.05 per cent gross, up from 0 per cent under current terms. Up to £25,000 will remain at 0.05 per cent, up to £10,000 will rise to 0.1 per cent from 0.05 per cent, and over £10,000 will earn 0.2 per cent, up from 0.1 per cent.

Hargreaves’ rates work on a tiered basis.

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