SIPP savers have been dealt a blow as a major provider of SIPP deposit accounts announces they are to pull out of the market.
For the past few years, SIPP (Self-Invested Personal Pension) savers have had to contend with low interest rates and limited choice of accounts, a problem now made worse with the withdrawal of the Bank of Ireland.
We understand that the Bank of Ireland has agreed with the European Commission to exit all banking activities in the Great Britain and as such will cease to offer SIPP deposit accounts from 31st January 2014.
The Bank of Ireland had previously offered a range of SIPP deposit accounts, with a range of fixed rate periods from one month to one year. Whilst money held in their accounts was not covered by the Financial Services Compensation Scheme (FSCS), the accounts were nevertheless a popular choice for many SIPP savers.
Applications from SIPPs will be accepted until 31st January 2014.
Existing fixed rate accounts will mature as originally agreed. However, SIPP savers should ensure that the Bank of Ireland have written instructions indicating where the maturing funds should be paid; without this the money will be held in an instance access account paying just 0.01% interest each year.
Savers looking for alternative SIPP deposit accounts should click here for a wide range of options.