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Sipp investors could be missing out on £480m

Nearly £13bn could be held in Sipps in cash at present and investors could be missing out on over £480m in interest per year.

James Hay says that Sipp investors should check the cash rates they are currently getting in their Sipps.

The Sipp provider says that market volatility means that Sipp investors are moving more of their portfolios into cash and that cash now comprises over 30 per cent of some Sipps.

James Hay says that the rates offered by Sipp providers vary greatly and up to 300,000 investors could be missing out on around £753 per year between the lowest and highest rates.

James Hay propositions & eCommerce manager Chris Smeaton says: “Cash rates are rarely focused on in Sipps. However, in volatile markets, investors frequently asset allocate to the safer havens of cash. In a lower return environment, these differences in cash rates are quite substantial.

“As our research shows, around 15 per cent of Sipp portfolios are held in cash, and investors need to consider cash rates when they chose a Sipp. James Hay’s eSipp now offers a table topping special deposit rate as well as one of the best standard rate, without tiers or catches.“

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