View more on these topics

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.“


Torrents of spring

For a number of years, economies around the world have enjoyed interest rates that have been held too low for too long, allowing ever increasing amounts of debt to be taken on by individuals and companies. This debt overhang is starting to unwind. In the face of market falls, one might be tempted to become a little more optimistic but the fact remains that the financial market issues now troubling governments, central bankers, companies and private individuals are many in number and complex in nature.

MPC voted 6-3 for 0.25 per cent cut

The Monetary Policy Committee voted 6-3 for a 0.25 per cent cut in interest rates this month with one member wanting an immediate 0.5 per cent reduction.

The curse of long-term cash

Trevor Greetham, Head of Multi Asset at Royal London Asset Management, reveals why clients should be seriously concerned when short-term holdings of cash turn into a long-term investment. There is nothing wrong with holding wealth in the form of cash on a short-term basis. For many people capital stability is important and access to ready cash […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers. Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and thought leadership.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm