The Leeds Building Society has entered the SIPP deposit account market with three new accounts designed specifically for SIPPs.
Traditionally there have always been fewer accounts available for SIPPs than for individuals; the new deposit accounts offered by the Leeds Building Society should therefore go some way to increasing competition.
Three new deposit accounts for SIPPs
The new launches by the Leeds Building Society include an instant access account plus a one and two year fixed rate.
The instant access account pays an annual interest rate of 1.80% gross AER, with the one year fixed rate paying 2.30% gross AER and the two year fixed rate slightly higher at 2.50%.
The two fixed rate accounts also offer SIPP savers the ability to access up to 25% of the capital without notice or losing interest.
Phillip Bray (right), Marketing & Relationship Manager with Investment Sense, who produce a best buy table for ‘sippable’ deposit accounts said: “Whilst the rates offered by the Leeds Building Society are not as good as some others, the ability to access up to 25% of the capital without penalty will be attractive to some SIPP savers who want additional flexibility.”
He continued: “Unlike some other SIPP deposit account providers the Leeds Building Society are members of the UK Financial Services Compensation Scheme (FSCS), this will also be attractive to SIPP savers.”
Kim Rebecchi, sales and marketing director of Leeds Building Society, said: “When you look at the uncertainty in the Eurozone and the impact this is having on the markets, it is clear that a guaranteed return from a provider that can deliver security and value will be attractive.”
He continued: “We identified that there are only a few providers in the market and the feedback we received from IFAs is that they want instant access or short term fixed rates, and that is exactly what we have delivered.”
SIPP deposit accounts comparison
You can see how the new accounts from the Leeds Building Society compare with other ‘sippable’ deposit accounts by taking a look at the Investment Sense SIPP deposit accounts best buy table.