INVESTMENTS

FIXED TERM DEPOSITS

In addition to the alternative instant access bank deposit accounts that we have available, investments may be made into fixed term deposit accounts. These are divided into two categories - streamlined and others.

Streamlined fixed term deposits benefit from our established automated account opening process, and therefore can be opened at a lower cost - £25. Details of the streamlined fixed term deposits are available here.

Other fixed term deposit accounts can be opened at a cost of £75. Examples of the other fixed term deposits are available here.

Should the amounts held in these accounts be rolled over upon maturity, a rollover fee equal to the original establishment fee will apply again. Therefore if short term accounts (30 days for example) are established and repeatedly rolled over, the relevant charge would apply each time.

Allowable investment criteria

In order to be deemed acceptable for our SIPPs the account must meet the following criteria:

  • have a fixed term of 5 years or less;
  • have a fixed rate;
  • be a sterling deposit held with an authorised credit institution;
  • able to accept pension monies by corporate or trustee applications (dependent on scheme type*);
  • able to be operated by post and/or fax by Suffolk Life's signatories; and
  • Where the term is more than 12 months contain a clause in the contract confirming that the term can be broken at the option of Suffolk Life.

* Accounts held within the Suffolk Life SIPP (deed poll) and protected rights benefits of Suffolk Life MasterSIPP plans established before 15 March 2010 are held in the corporate name of Suffolk Life Annuities Limited.

Accounts held within non-protected rights of Suffolk Life MasterSIPP plans established before 15 March 2010 and all Suffolk Life MasterSIPP plans established after 15 March 2010 are held in the name of Suffolk Life Trustees Limited, as trustee.

With the exception of the four alternative instant access bank accounts detailed above, Suffolk Life do not permit the holding of alternative deposit accounts other than those with a fixed term. This criteria is set for a number of reasons, including:

  • Additional variable rate accounts would be complex to administer and reconcile on a regular basis. This would lead to inaccuracies in valuations obtained on our secure portal and on an ad hoc basis;
  • Alternative deposits can delay investments being actioned or benefits being taken. Monies must be returned, accounts closed and reconciled before further action is taken;
  • Fixed term deposits are designed as investment accounts, ensuring at the outset we, you and your client know when the monies will be available and the expected maturity amount.