The downward trend in SIPP deposit account interest rates has continued into October, although, for once, there is the odd glimmer of hope that the bottom may have been reached.
Unfortunately, no new banks or building societies have entered the SIPP deposit account market this month, indeed we have lost some accounts, including the popular one and two year fixed rates from the Ipswich Building Society.
However, some existing SIPP deposit account providers have launched new accounts.
The Bank of Ireland’s one and two month fixed rates, at 1.00% and 1.50%, gross per annum, respectively, have now been included our the tables.
Britannia International has launched a new one year fixed rate at 2.45%, whilst RBS has also launched two new one year fixed rates. The Unbreakable Fixed Rate Deposit pays 2.00% gross per annum and the General Fixed Rate Deposit, which allows access during the fixed rate period, pays 1.75%.
Of course we also have the Mansfield Building Society, who entered the SIPP deposit account market. Their 30 day notice account pays 1.85% gross per annum for balances of between £25,000 and £49,999, and 2.00% at £50,000 plus.
Last month we had to report no climbers whatsoever, October brings slightly better news.
United Trust Bank stands out from the crowd this month, with significant increases to their two, three and five year fixed rates; the five year rate has increased from 3.55% to 4.00%.
In addition Bank of Ireland has slightly increased some of their short term fixed rates.
As the effects of the Funding for Lending Scheme, as well as other factors, continue to bite, there are again more fallers than climbers.
Bank of Baroda has cut their two, three and four year fixed rates slightly, although their five year fixed rate remains unchanged.
Permanent Bank has reduced rates across their range of accounts and despite increasing their longer term fixed rates United Trust Bank has reduced the interest rates on their shorter term deals, for example the one year rate has fallen from 3.46% to 3.00%.
Continuing the theme, Investec Bank has reduced their one, three, four and five year fixed rates, although their two year fixed rate has actually increased by 0.10%.
Cater Allen has reduced their one, two and three year fixed rates by 0.25%, 0.10%, and 0.40% respectively.
Lastly, the Clydesdale Bank International has significantly cut their one year fixed rate from 2.50% to 2.15%, two years has fallen from 2.95% to 2.60%, three years from 3.35% to 2.85%, and five years has dropped 0.5% to 3.20%.
Last month we said we were keeping our fingers crossed for one or two rate rises, and that’s exactly what we got, no more and no less!
We’ll be monitoring the market closely over the next month to find any other banks or building societies who decide to increase rates, and much like last month, our fingers will remain crossed, although more in hope than expectation.
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 firstname.lastname@example.org or by calling 0115 933 8433 and asking for Phil Bray.
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