Investec pays 2.5% on Sipp cash account
Investec Private Bank is paying interest of 2.5 per cent on its Pension and Trust Reserve Account.
The investment plan, which holds the cash element of a Self Invested Personal Pension (Sipp) portfolio, is available for customers with balances of £100,000 or more.
And it is being hailed by the bank as having one the most attractive rates for Sipp accounts on the market.
Lionel Ross, of Investec, said many investors had increased the cash allocation in their pension funds to reduce exposure to the volatile equity markets.
Yet, analysis by Investec of 84 Sipps revealed the average return on cash balances of £100,000 held in the pension plans was 0.19 per cent. Just ten of the accounts paid interest at 0.5 per cent or more.
Mr Ross added, "Our research shows that most Sipps are offering poor returns on the cash element of the funds and even those with larger balances cannot guarantee a competitive rate of interest."
Investec's Pension and Trust Reserve Account offers one month's notice to access cash. A minimum balance of £25,000 is required to open the account.
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