When comparing charges between different SIPP providers, you should also compare the interest rates payable on your cash, particularly if you intend to hold significant sums of money in cash. The amount of interest paid will depend on the amount you choose to hold in cash and market interest rates. The table below shows the current interest rate that will be paid on cash held in your SIPP cash account. Please note that all cash will be held in your SIPP cash account until transferred or invested with your chosen stockbroker.
||Gross interest rate for this tier only
||Interest rate (AER) for this tier only
- Interest rates are subject to variation and interest is paid to your account quarterly, in arrears
- There are no routine bank transaction charges and interest is paid to your account without any deduction of tax.
- The Annual Equivalent Rate (AER), represents the annual rate effectively received by your account if the interest at gross rate applied during a year remained in the account and itself earned interest.
Whilst not directly relevant when comparing charges and interest rates, you should be aware that AJ Bell receives payments from banks based on the aggregate cash balances held across all accounts. The amount we receive will vary depending on the total cash balances held and market interest rates. Over the foreseeable future, we expect to receive between 0.25% and 0.5% per annum above the prevailing base rate, although it may be higher or lower when interest rates are volatile. These payments are used to pay interest to your SIPP, at the rates shown on our website, we retain the amount received above this level to keep our administration charges competitive
We do not receive any payments on cash held by your chosen stockbroker.
There is currently no requirement for you to hold a minimum amount of your SIPP fund in cash, although you must always ensure that there is sufficient cash held to cover our charges, and any benefits, or other payments, when they are due for payment.