Interest rates get interesting in SIPPs

[terminal7]

The latest interest rates for cash held in a SIPP with ii and AJB are 3.5% and 3.45% respectively for over £10k (higher for over £10ok). Clearly you can get higher outside a SIPP but with an immediate tax liability. Having gone somewhat liquid in recent months in my SIPPs this provides a useful revenue stream.

Needless to say the ISA rates are lower at 2.75% and 2.2% respectively.

T7

[simoan]

The latest interest rates for cash held in a SIPP with ii and AJB are 3.5% and 3.45% respectively for over £10k (higher for over £10ok). Clearly you can get higher outside a SIPP but with an immediate tax liability. Having gone somewhat liquid in recent months in my SIPPs this provides a useful revenue stream.

Needless to say the ISA rates are lower at 2.75% and 2.2% respectively.

T7

I’m currently getting 4% with HL. Has it changed the way I invest? Yes. It’s meant the valuations I need to deploy it into riskier assets have reduced. Equities need to be cheaper on a fundamental basis.

[Fluke]

The latest interest rates for cash held in a SIPP with ii and AJB are 3.5% and 3.45% respectively for over £10k (higher for over £10ok). Clearly you can get higher outside a SIPP but with an immediate tax liability. Having gone somewhat liquid in recent months in my SIPPs this provides a useful revenue stream.

Needless to say the ISA rates are lower at 2.75% and 2.2% respectively.

T7

For clarification, only the bit above £10k is paid at 3.45% (AJB), 0 to 10k is paid at the lower rate of 2.95%.

[scrumpyjack]

Can one buy things like the Vanguard Money Market fund in a Hargreaves Lansdown SIPP? That should be better place for cash?

[moorfield]

Can one buy things like the Vanguard Money Market fund in a Hargreaves Lansdown SIPP? That should be better place for cash?

One can, but remember that the costs of doing so will likely wipe out any gains over those interest rates. I look at doing this from time to time but in the end KISS and just leave the cash alone.