Money News
Santander subsidiary James Hay, the UK's largest Self Invested Personal Pensions (SIPP) provider, has launched a Special Deposit Account for cash in its eSIPP, paying a market leading 6.90% gross, fixed for one year.
The account has a minimum balance of £10,000 and is available to investors holding money in the Investment Centre of James Hay's eSIPP. Market volatility continues to drive SIPP investors to move segments of their portfolios into cash. James Hay research has shown a rise in importance in cash - with a 10% increase in cash holdings in SIPP portfolios over the past three months alone.
With the average SIPP balance estimated at £46,500, up to 300,000 investors could be missing out on as much as £1,930 per year based on the difference between the lowest rate and the James Hay eSIPP Special Deposit Rate of 6.9 per cent.
The Special Deposit Account also offers the certainty of a fixed rate, as opposed to the majority of SIPP cash accounts - which offer variable rates. Andy Pennie, Marketing Director at James Hay commented, "James Hay is the first SIPP provider to launch cash rates akin to the top rates on the high street. This market-leading rate gives SIPP investors access to an excellent rate for those prepared to lock their money away for a year, at a time when they are more likely to be investing in cash."
16 July 2008 © Moneyextra.com
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