NIS says it already writes a lot of pension money through Sipp administrators who are managing schemes on behalf of their clients but has targeted the market more aggressively since the beginning of the year.
Newcastle Building Society intermediary sales executive Steven Marks says: “It isn’t a huge market, there’s probably only between 80 and 100 Sipp administrators in the country. We’ve been doing business with Sipp administrators for five or six years but since the beginning of the year we’ve taken business from an extra 25-26 Sipp administrators on top of the half a dozen we already had.
“We haven’t got round them all yet, we’ve spoken to around 60 of them but it takes time. They’re inevitably sitting on cash and they have to put it somewhere.
“A lot of the traditional pension schemes are getting harder so I think the Sipp market will grow and that means cash in Sipps will grow.”
NIS has been developed as an arm of Newcastle Building Society to offer deposit based savings to the intermediary market. NIS has seen a 50 per cent increase in structured deposit sales since the beginning of the year.
In 2008, 60 per cent of its business came directly from customers and 40 per cent from intermediaries.
NIS is also planning to launch a range of corporate deposits for advisers next month to cater for their corporate clients.
Marks says there is strong adviser demand for the products given the poor rates on business cash being offered elsewhere.
He says: “A lot of advisers have a lot of self-employed clients and we see demand there. If you look at interest rates from the big banks for business cash they are really low – nothing like as competitive as the personal or retail market. We think we can offer more competitive products – we think we can do rates of a couple of per cent.”