Unfortunately the downward trend in SIPP deposit account interest rates has continued into September.
The introduction of the Funding for Lending Scheme, falling swap rates and the desire of lenders to offer cheaper mortgage deals have all conspired to push interest rates down; our latest blog looks at this in more detail, read it by clicking here.
There are however two notable new entries this month, read on to find out who.
We are delighted to announce that the Mansfield Building Society has launched an account specifically for SIPPs.
The SIPP Trust Cash Deposit Account – Pension 30 is, as the name suggests, a 30 day notice account, paying 2.00% for balances of £50,000 or more and 1.85% on balances between £25,000 and £50,000.
Commenting on the launch, The Mansfield’s Chief Executive Gev Lynott said: “I’m delighted by the addition of a SIPP Deposit account into our portfolio and we would like to thank Investment Sense for their valuable help developing this product.”
More information, including contact details and application forms, can be found by clicking here.
For SIPP investors looking for instant access accounts we have included the Bath Building Society’s SIPP Plus account for the first time. For balances of between £25,000 and £500,000, interest of 2.10% is payable, with instant access, subject to a penalty of 90 days interest after the first two withdrawals in a year.
No easy way to say this, but no banks or building societies have increased their interest rate over the past month.
Although interestingly Investec have left their one year rate unchanged at 3.20%, which is now higher than their two year fixed rate!
A sea of rate reductions over the past month.
Britannia International has reduced their three and six month fixed rates slightly, whilst Arbuthnot Latham have also reduced their six month fixed rate.
Despite leaving their one year fixed rate unchanged Investec have cut all other rates, in some cases quite significantly. The six month fixed rate from has dropped from 2.50% to 2.20%, nine months from 2.95% to 2.60% and one year from 3.40% to 2.90%.
Investec’s longer term products have suffered a similar fate, with the two year fixed rate falling from 3.45% to 3.00%, three years dropping 0.20% to 3.30%, four years down to 3.40%, and five years also dropping by 0.20% to 3.50%.
At the same time Permanent Bank significantly reduced their rates on all products and Clydesdale drop their long term, five year fixed rate, from 4.15% to 3.70%.
Julian Hodge reduce their one year fixed rate from 3.35% to 3.10%, two years from 3.35% to 3.10%
The Co-Operative Bank has withdrawn their two, three, four and five year fixed rates, whilst Scottish Widows Bank also withdraws their five year fixed rate.
Finally, the one year fixed rates from RBS have been quickly filled and have both been withdrawn to be replaced in October by new issues.
Let’s hope that next month sees an end to the rate reductions and perhaps one or two rises, fingers crossed!
In the meantime we are working with other banks and building societies to expand the range of SIPP deposit accounts even further.
We welcome your feedback; if there is another bank or building society you know who offers deposit accounts for SIPPs, which we don’t include, please email us to let us know. We can be reached by emailing email@example.com or by calling 0115 933 8433 and asking for Phil Bray.
Finally, why not follow us on Twitter? It’s one of the best ways to keep up to date with all the latest SIPP deposit account news; we can be found @ukinvestment