SIPPs: Why are interest rates on SIPP deposit accounts falling?

The interest rates on SIPP deposit accounts have been falling for a few weeks now, although the downward trend has gathered momentum over the past few days. We all know that Bank of England base rate has been stuck at 0.5% for over three years now, but just what is causing the recent reductions in SIPP deposit account interest rates? Swap rates Need advice on your SIPP?...

SIPPs: 7 problems with buying overseas property in a SIPP

7 problems with buying overseas property in a SIPPBuying a commercial property in a SIPP has long been popular with business owners and property investors alike. However, the past few years has seen an increase in the number of unregulated overseas property schemes being marketed to UK SIPP investors. We’ve seen a diverse range of property investments, from bamboo plantations to car parks in Dubai, land in far flung places of the globe, to hotel rooms in popular holiday resorts. ...

8 Pension pitfalls to avoid

Pensions are a hot topic at the moment, as we write a number of unions are threatening strike action and bodies as varied as the Office for National Statistics (ONS) and Scottish Widows have produced surveys showing how the membership of private pensions is dwindling. Despite these reports and the general apathy towards pensions, they form a central part of many people’s retirement plans. We thought we would take a look at some of the pension pitfalls to avoid when planning for your retirement. 1. Do you really need a SIPP? Many a dinner party conversation has been dominated by house prices and how ...

SIPP costs are falling

SIPP providers have cut their fees over the past five years according to the independent financial research company Defaqto. The reduction in fees has continued despite the low interest rate environment squeezing SIPP provider margins. Low interest rates hurt SIPP providers as they reduce the margin between the interest they pay to the client and the interest they receive from the bank running the SIPP account. Defaqto’s figures show that the average set up fees for a £50,000 SIPP had fallen from £267 in March 2007 to £224 in May 2011; a reduction of 16%. The average annual administration fee for a ...