Low costs mean more of your money working for you. The Vantage SIPP could help you make more of your pension, giving you more money for your retirement. Our SIPP is FREE to set up and low cost to run and you could also benefit from exclusive super-low fund charges.
* Before you transfer please ensure you will not lose any valuable guarantees or incur excessive exit fees.
We make it as easy as possible by collecting fees automatically from your account.
Charges will first be collected from cash in your SIPP. The "Suggested Minimum Cash Balance" gives you an idea of how much you should hold to meet future fees. It is just a suggestion and you can ignore it if you wish.
If you have no cash in your SIPP, we will collect fees from loyalty bonuses received on units purchased before 1 April 2014, and then from any cash in your Vantage Fund & Share Account.
As a final resort, we will sell holdings in your SIPP to cover the amount owed and restore the minimum cash balance. There will be a small charge of £1.50 per deal. We will normally sell units of the largest fund holding first. If, for whatever reason, we are unable to sell units of the largest fund holding, we will sell units in the next largest fund holding, and if you don't hold funds, we may sell part of other holdings.
To avoid having investments automatically sold, you can easily top up the cash balance of your SIPP with your debit card (subject to the pension allowances) or add money to a Vantage Fund & Share Account.
Fixed Rate Cash Offers
Fixed rate cash offers are sometimes available in the Vantage SIPP. You can earn a competitive interest rate on the cash in your SIPP, provided you leave the money in cash for three or six months. No offers are currently available, but to find out about any future offers please register your interest.
Standard variable interest
If you want to have some cash in your SIPP ready to invest, you can earn tax-free interest at our variable rate. The higher the cash balance, the higher the interest you earn.
Base rate since 05/03/2009: 0.5%. All rates are variable unless stated otherwise.
|Account Balance||Gross % for this tier only†||AER for this tier only†|
|£25,000 - £99,999.99||0.10||0.10|
|£5,000 - £24,999.99||0.05||0.05|
|£0 - £4,999.99||0.05||0.05|
|† Note: Interest is tiered within bands so you will currently receive 0.05% (gross) on the first £4,999.99, 0.05% on the amount above £5,000 and below £24,999.99 and 0.10% on the amount above £25,000 and below £99,999.99, and 0.20% on balances over £100,000. These tiered rates should not be directly compared to the AER, gross or net interest rates of accounts which are not tiered or have a different tier structure.|
|Flexible drawdown||Capped drawdown|
|Starting drawdown||No charge||No longer available to new investors|
|Each GAD calculation||N/A||£75 +VAT|
|Regular income payments||No charge||No charge|
|Alter payment amount /frequency||No charge||No charge|
|One-off payments||No charge*||No charge|
*A drawdown account closure fee applies instead of the standard account closure fee (£25 + VAT) when funds are withdrawn and the drawdown account has been open for less than 12 months. Not applicable to transfers out or clients who held Flexible Drawdown accounts in the Vantage SIPP which were set up before April 2015, when the standard account closure fee will apply.
|Annuity quotation||No charge|
|Annuity purchase||No transfer-out charge if purchased via Hargreaves Lansdown, otherwise £150 + VAT. An annuity purchase via Hargreaves Lansdown will generate a commission or fee payment, which will be shown on your annuity quotation.|
Uncrystallised Funds Pension Lump Sum (UFPLS)
|Taking an UFPLS||No charge**|
**A SIPP account closure fee applies instead of the standard account closure fee (£25 + VAT) when funds are withdrawn and the SIPP account has been open for less than 12 months.
For full cost details see our Terms & Conditions.
The above fees exclude the cost of any advice you may require. If you require advice, you would agree this cost separately with an adviser.
If you have more than one SIPP account (for example, an account from which you have not taken an income and an account in drawdown), any charges applied to those accounts will be treated separately.
Drawdown is a more complex option than an annuity. What you do with your pension is an important decision: you could run out of money. Make sure you understand your options and check they are suitable for your circumstances: take appropriate advice or guidance if you're unsure. Our service is not personal advice but we can offer advice if you specifically request this. The Government's free Pension Wise service can also help - more on Pension Wise.
What Investment Readers Award
Mr Rowlands explains why drawdown is his preferred choice and why he was attracted by the death benefits.
I paid into my old work pension in order to receive my employer's contributions, but I made contributions into my SIPP rather than doing AVCs as the insurance company scheme had high charges. At age 60 some of my pensions matured and I transferred them to my SIPP.
I have stopped working full-time but still do some part-time consultancy. I feel we are moving to a more European lifestyle where retirement is a gradual process so drawdown is ideal for me. On the one hand I have taken some tax-free cash and have the option of taking an income but on the other hand I still make tax-relievable contributions to my SIPP.
I already have an annuity, some final salary pension provision and the state pension due in the future so I can afford to take a more ambitious approach with my drawdown investments.
I chose drawdown because the death benefits were more attractive than an annuity - my fund will provide my wife with a pension upon my death and will be passed as a lump sum, albeit less a tax charge, to our dependants after she dies.
I mostly manage my account through the website. When I log in everything is very clear and transparent. I contrast this with my old insurance company pension with their pages of complicated information and the two are night and day! I wouldn't hesitate to recommend the HL SIPP.