Skip to main content

The Sipp that pays a miserly 0.00001%

 

Plans to force firms to be more upfront about the rates they are paying on cash in Sipps, and the huge profit margins they are making, have been kicked into the long grass.

Caution: One Sipp is paying 0.00001% interest

It is estimated that up to a third of the £52.6bn held in Self Invested Personal Pensions is parked in deposit accounts which pay little or no interest.

Almost half - 40 out of 96 - Sipp bank accounts pay nothing at all, according to research from Defaqto.

These include those offered by insurance giants Aegon, Axa and Legal & General.

Savers with James Hay - part of Abbey - are paid one hundredthousandth of 1%.

The average account pays just 0.14% on deposits of £50,000, almost four times less than Base Rate, currently 0.5%.

The sheer buying power of these firms means they can negotiate increased rates from the banks, but they do not pass them on to their Sipp investment. Instead, they use them to boost their profits.

In a damning report published earlier this year, City watchdog the Financial Services Authority (FSA) revealed Sipp savers are being kept in the dark about rates on deposit, with firms failing to be clear about charges.

But instead of introducing stricter rules on disclosure, the FSA has allowed the powerful trade body the Association of British Insurers (ABI) to come up with its own set of voluntary guidelines which, released earlier this month, make no mention of cash rates.

An FSA spokesman says: 'We uncovered some very patchy practices in this area. The guidelines don't address this problem, so we've asked the ABI to consider the issue of cash in Sipps. If this industry-level approach doesn't work, we will consider regulatory action.'

An ABI spokesman says: 'The cash issue was never intended to be part of the guidance. It's slightly odd that the FSA is getting hot under the collar about this. It's a red herring.

'You'd be crazy to hold cash in a Sipp for any length of time. Savers often use them simply to hold money before investing.' pkg_fe_dm_linklists.f_group_carousel(in_link_list_group_id=>908) -->

Popular posts from this blog

Study Abroad USA, College of Charleston, Popular Courses, Alumni

Thinking for Study Abroad USA. School of Charleston, the wonderful grounds is situated in the actual middle of a verifiable city - Charleston. Get snatched up by the wonderful and customary engineering, beautiful pathways, or look at the advanced steel and glass building which houses the School of Business. The grounds additionally gives students simple admittance to a few major tech organizations like Amazon's CreateSpace, Google, TwitPic, and so on. The school offers students nearby as well as off-grounds convenience going from completely outfitted home lobbies to memorable homes. It is prepared to offer different types of assistance and facilities like clubs, associations, sporting exercises, support administrations, etc. To put it plainly, the school grounds is rising with energy and there will never be a dull second for students at the College of Charleston. Concentrate on Abroad USA is improving and remunerating for your future. The energetic grounds likewise houses various

Best MBA Online Colleges in the USA

“Opportunities never open, instead we create them for us”. Beginning with this amazing saying, let’s unbox today’s knowledge. Love Business and marketing? Want to make a high-paid career in business administration? Well, if yes, then mate, we have got you something amazing to do!   We all imagine an effortless future with a cozy house and a laptop. Well, well! You can make this happen. Today, with this guide, we will be exploring some of the top-notch online MBA universities and institutes in the USA. Let’s get started! Why learn Online MBA from the USA? Access to More Options This online era has given a second chance to children who want to reflect on their careers while managing their hectic schedules. In this, the internet has played a very crucial in rejuvenating schools, institutes, and colleges to give the best education to students across the globe. Graduating with Less Debt Regular classes from high reputed institutes often charge heavy tuition fees. However onl

Sickening moment maskless 'Karen' COUGHS in the face of grocery store customer, then claims she doesn't have to wear a mask because she 'isn't sick'

A woman was captured on camera following a customer through a supermarket as she coughs on her after claiming she does not need a mask because she is not sick.  Video of the incident, which has garnered hundreds of thousands of views on Twitter alone, allegedly took place in a Su per Saver in Lincoln, Nebraska according to Twitter user @davenewworld_2. In it, an unidentified woman was captured dramatically coughing as she smiles saying 'Excuse me! I'm coming through' in the direction of the customer recording her. Scroll down for video An unidentified woman was captured dramatically coughing as she smiles saying 'Excuse me! I'm coming through' in the direction of a woman recording her A woman was captured on camera following a customer as she coughs on her in a supermarket without a mask on claiming she does not need one because she is not sick @chaiteabugz #karen #covid #karens #karensgonewild #karensalert #masks we were just wearing a mask at the store. ¿ o