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Cash in SIPP and ISA
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David Trigg
Posted: 15 November 2012 15:32:01(UTC)
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I have cash in my SIPP and ISA accounts which earns miserable interest. How can I keep that in my accounts and earn better interest - are there any money market facilities?

Many Thanks - DT
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Steve P
Posted: 15 November 2012 17:39:57(UTC)
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There is the M&G High Interest fund.

http://www.ft.com/cms/s/...bdc0.html#axzz2CJW4a4Ob

Though personally I'd invest in stocks and shares - cash is unlikely to give you a spectacular return.
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A Sick SIPP Owner
Posted: 15 November 2012 17:43:41(UTC)
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So - for a detailed answer - rather than just a "Move them to somewhare that pays better "
What value in SIPP as cash
What value in SIPP as unit - gilts etc
What value in SIPP as 'Managed Funds'
What value in SIPP as stock - FTSE etc.
What value in ISA as cash
What value in ISA as Stocks
What value in ISA as 'managed funds'

And what rates have you managed from each of those in the past 1, 2 and 3 years
How much of what is locked in and for how long with what guarantee on the returns

OR - for a proper answer - ;perhaps you should visit a financial advisor for a proper analysis of your investments.

Jimm
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David Trigg
Posted: 15 November 2012 18:06:02(UTC)
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Hi,

Thanks for the replies. I am just looking for a short term holding for cash which has a better interest rate with no capital downside (or I agree upside) which is better than the poor returns which I receive via SIPP/ISA. This is prior to getting back into stocks.

DT
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A Sick SIPP Owner
Posted: 15 November 2012 18:32:14(UTC)
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So - how about providing some detail of what you want an answer about.

You should be able to find a cash-ISA account that will pay over 3%
IF
you can manage to meet the associated requirements

So - put your money in that account
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David Trigg
Posted: 15 November 2012 19:30:29(UTC)
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Hi,

The cash I have is in a stocks ISA and SIPP as I have sold some shares. I want to keep the cash in those accounts but hold the cash in something which has a higher return than the poor rate of the SIPP and ISA but still keeps it available to buy shares when I feel that I want to.

DT
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Income Investor
Posted: 16 November 2012 08:23:55(UTC)
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David,

This is a key problem: it is difficult to hold cash in an ISA or SIPP in the same way that you can hold a savings bond outside one of these wrappers.

I don't have a solution at the moment - one option might be to go temporarily to index-linked gilts, but these may be overpriced at the moment. A definite gap in the market.
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1 user thanked Income Investor for this post.
David Trigg on 16/11/2012(UTC)
Geoff James2
Posted: 19 November 2012 12:58:37(UTC)
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This is not so much a gap in the market, but a symptom of the market.

All short term cash investments are paying derisory returns. You need to accept it until the banks again start competing to attract capital from investors. Currently the banks can obtain capital for a lower cost from the government and they are under no pressure to raise savings rates.

Staying in cash is, in most cases, not a bad thing given that inflation is so low, and likely to stay low for a while. As soon as you exit cash then you take on higher risk and it for you to decide (with a financial advisor?) what risk you are willing to take.

I for one like the peer-to-peer lending models for the premium returns that are available. Some of these platforms will take SIPP cash but it ties the money up for a period.

I hope the above helps - please accept that I not a financial advisor and will not be held responsible for anything I have said. However, if you use this information to make money then I would like my 25% share :-)

regards
Geoff
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David Trigg on 19/11/2012(UTC)
CMLight
Posted: 19 November 2012 16:01:24(UTC)
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I am in exactly the same position. No cash deposits pay much above inflation. What i have decided to do is to put half the cash in a high yield ETF (iUKD) and the other half in a Gilliat Income Builder Plus structured bond, No idea how this will work out but it should be interesting- and its only 1% of my portfolio!

cmlight
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1 user thanked CMLight for this post.
David Trigg on 20/11/2012(UTC)
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