BullDog wrote:In my SIPP and ISA accounts, I let a year of dividend income build up and then draw down in March before the end of the tax year. The interest paid by the investment platform on this cash is pretty derisory. I suppose it's one way they make money for themselves.
However, now that 5% interest is available on the High Street, is there a way for me to get a better interest rate on the money between receiving it and drawing it down? Like from today, there's several thousand pounds that could be getting interest until drawdown in March 2024. But it isn't.
I have looked at various collective investments with cash or money in their names. But it seems they're invested in a portfolio of short dated bonds. I really do not want anything that's not cash getting interest.
Are there any investments you can hold in a SIPP or ISA that are real money invested for interest? Thanks.
Short Term Money Market funds are pretty much that. There is default risk nonetheless. There is no compensation scheme for that. The risk is tiny compared with bond funds, and almost non-existent in comparison with equities. What matters is your overall portfolio risk. The Royal London fund is a popular one.