Liberty SIPP

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Best SIPP interest rates?

One issue that continues to raise its ugly head with regard to SIPPs is interest rates paid on money held in default SIPP bank accounts.

This was brought home as this year’s Pension Management SIPP survey once again highlighted the disparity of interest rates that SIPP clients receive from their providers.

It appears that some SIPP providers are currently offering 0% interest on monies held on deposit and the survey even said that two SIPP providers were paying 2.2% below base!

The main reason for this is that some SIPP providers supplement their published fees with a cut of rates that should be paid to the member.

Liberty do not partake in such practices and currently offer one of the best available rates for monies held in the default SIPP bank account. Their agreement with RBS is to obtain .25% above base. With current base rates at .5% this means that Liberty customers currently get .75% interest.

Liberty also give their clients the flexibility to open any fixed rate bank account with any bank of their choice.

Currently they have an agreement with Investec Bank to provide Liberty clients with the following rates:

• Pension Trust Reserve with a minimum investment £25,000 in one month notice account is currently paying 2.25% gross AER.
• Fixed rate accounts with a minimum investment of £50,000 for one year is paying 2.57 AER and for 24 months the rate is 2.93% AER.

Liberty do not take any payment from any bank for any service their clients utilise.

Sep 21, 2010