SIPP stands for Self Invested Personal Pension and is a type of personal pension plan. It works in the same way for contributions, tax relief and eligibility. However, the main difference is that the SIPP has a more flexible approach to investments.
Available via specialist SIPP administrators, find out more about our available SIPP accounts below.
|Minimum Balance||£25,000 +|
|Interest Rate (AER1/Gross2)||0.55%|
|Interest Payable||Annually on 31 December|
|Withdrawals||Withdrawals or closure are subject to 90 days written notice by post and will be paid by cheque or electronic transfer to the designated SIPP bank account only.|
AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once each year. AERs on the Monthly Income account assume interest is added to the account each month although in practice the option to have interest added in this way is not available.
The gross rate is the contractual rate of interest payable without tax taken off.
If separate AER/Gross rates are not quoted, both rates are identical.
Tax free means exempt from UK income and capital gains tax in the hands of the investor.