At the risk of sounding like Tony Blackburn we thought we’d take a look at the risers, fallers, and the new entrants in the SIPP deposit account market this month.
Who is ‘Top of the Pops’ this month?
On the way up
Not many rates on the way up this month, with the main exception being Cater Allen who have increased the interest rates on some of their short term fixed rates significantly.
The rate on their three month fix has risen massively from 1.14% to 1.70% with their six month fixed rate rising from 1.56% to 1.90%. Their nine month fixed rate has also increased, this time to 2.2%.
Unfortunately that’s about it for rates on the way up.
One the way down
Some significant rate reductions this month.
In the short term fixed rate market, of up to one year, Cater Allen have reduced their one and two month fixed rates, with further rate cuts for the Clydesdale, Nationwide International and Bank of Ireland on their one year fix rate products.
The main beneficiary of these rate reductions is Permanent Bank International, who now top our SIPP deposit account best buy tables for all fixed rates of between three months and one year, with Close Brothers Treasury now offering the best one and two month fixed rates.
In fact the Clydesdale have cut rates across the board, on all their fixed rate products, some of which were previously market leading.
When it comes to longer term fixed rate products Scottish Widows have dropped the rate on their popular five year fixed rate account by 0.20% to 3.80%, although their other accounts remain unchanged.
One of aims in producing the SIPP deposit account best buy table is to encourage more banks and building societies to offer ‘sippable’ deposit accounts.
A wider range of accounts will benefit SIPP investors who generally cap their investment at £85,000, especially for institutions covered by the Financial Services Compensation Scheme (FSCS), and should also help to encourage more competitive rates. We are still seeing SIPP deposit accounts pay a lower rate of interest compared to personal accounts, which we believe is unfair and we intend to do everything we can to increases competition in this market.
Over the coming months we hope to bring you more new entrants to this market and should be able to make some exciting announcements soon.
In the meantime, what accounts have we added to the table over the past month?
Last month it was Arbuthnot Latham, whose six month and one year fixed rates have proved extremely popular, this month sees us add accounts from the Royal Bank of Scotland (RBS).
We have added a six month and one year fixed rate for RBS at 1.69% and 3.00% respectively, as well as two stepped accounts with terms of two and three years.
RBS also have a ‘breakable’ one year fixed rate, which allows SIPP investors to have access to their funds in return for giving 95 days notice and paying a penalty of 6 days interest.
If you are looking for a notice account we have added the Nationwide International 95 day account which pays 2.30% per year.
Finally we are delighted to include two, three, four and five year fixed rates from the State Bank of India, all ‘sippable’ and all covered by the FSCS.
In response to feedback from users of the table we have now included the monthly interest rate where savers have the option to choose between monthly and annual interest.
Over the next week or so we will also be including details of how interest is paid, for example monthly, annually or at maturity, as well as information about whether it is paid away to a separate account or accumulated to the balance.
We love your feedback, feel free to drop us a line with any comments on the table or other developments you would like to see, our email address is firstname.lastname@example.org