Millions lost in poor paying SIPP cash accounts

James Hay, the UK's largest Self Invested Personal Pensions (SIPP) provider, warns that SIPP investors may be continuing to miss out due to poor paying cash accounts within SIPPs. Market volatility is driving SIPP investors to move segments of their portfolios into cash. James Hay research has shown a rise in importance in cash - with cash comprising over 35 per cent of some SIPP portfolios.

With the average SIPP cash balance estimated at £46,500, up to 300,000 investors could be missing out on around £1,930 per year between the lowest rates and James Hay's eSIPP special deposit rate (fixed rate offer) of 6.90 per cent.

Chris Smeaton, Propositions & eCommerce Manager at James Hay commented: "Cash rates are now becoming a key focus in SIPPs as investors increasingly asset allocate to the safer havens of cash. In a lower return environment, these differences in cash rates are quite substantial.

"Our research shows around 15% of SIPP portfolios are held in cash, and investors need to consider cash rates when they chose a SIPP. James Hay's eSIPP now offers a table topping special deposit rate as well as one of the best standard rate, without tiers or catches."

James Hay SIPP is backed by Santander, one of the largest banks in the world, which was recently awarded the Best Global Bank award by Euromoney. James Hay has won over 22 awards for its SIPP product and service in the last six years.