Whether you're close to retirement or in the early stages of planning, a fixed term SIPP (Self Invested Personal Pension) deposit can give you more control over how you save for the future.
We talked to our pensions specialist, Andrew Mews, to find out more about how a fixed term SIPP deposit could fit in to a person’s pension portfolio.
Q. What is a SIPP?
Andrew: Self-Invested Personal Pensions (SIPPs) are a type of personal pension. They are an individual contract between you and the pension provider. A SIPP gives the individual control of where their money goes and how it grows, making your own decisions or with the help of a Financial Adviser.
A SIPP allows more flexibility as you manage your savings yourself, depending on your circumstances and what you want to achieve.
Q. What is a fixed term SIPP deposit?
Andrew: They work in the same way as our other fixed term deposits, so you get a fixed rate of interest for the duration of the fixed term that your money is locked away. It may be reassuring to know exactly what the interest (and total value) of that portion of your money will be at the end of your term, providing more control over that part of your pension fund, as you plan how you save for the future.
Q. What are the features of Close Brothers Savings’ SIPP fixed term deposit?
Andrew: If you already have a SIPP, you can deposit between £25,000 and £2 million into our SIPP fixed term deposit. We have a range of terms to suit a variety of requirements: currently 9 months, 1 year, 18 months and 2, 3, 4 or 5 years. You get a competitive, fixed rate of interest for that term. Interest is not tiered (you’ll receive the same competitive rate, however much you deposit) and interest is paid annually.
Q. What kind of customers is the SIPP fixed term deposit suitable for?
Andrew: On the whole people tend to opt for fixed term particularly at times when there is unpredictability associated with other savings products. It can be reassuring to have that element of certainty.