Expert VerifiedBest SIPP Deposit Accounts 2025: 5 Key Features You Should Know
- Last Updated: 05 Aug 2025
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Key Takeaways
- SIPP deposit accounts allow you to hold cash within your pension, offering security and stable returns.
- Interest rates vary widely, with the best rates in 2025 reaching up to 3.73% for flat-rate accounts and 2–3.25% for tiered accounts.
- FSCS protection applies to most SIPP deposit accounts, safeguarding your cash up to £85,000 per provider.
- Fixed-term and easy-access options are available, with minimum deposits ranging from £1 to £25,000.
- Always review fees, withdrawal restrictions, and provider reputation before opening an account.
- For a full checklist, visit our SIPPs Checklist.
Finding the best SIPP deposit accounts can transform the way you manage your pension savings in the UK.
For both newcomers and experienced savers, a deposit account exists as an option within a SIPP.
In This Article, You Will Discover:
EveryInvestor has compiled this primer to detail some popular options, highlighting their security features and interest rates.
All our content undergoes quality and compliance checks before publication so we can be sure we are bringing you only the most relevant and up-to-date information.
What Is a SIPP Deposit Account?
A SIPP deposit account is a special type of cash account held within a Self-Invested Personal Pension (SIPP).
It allows you to keep part of your pension in cash, earning interest while maintaining liquidity and reducing investment risk.
Unlike regular savings accounts, SIPP deposit accounts are designed for retirement savings and are subject to pension rules.
How SIPP Deposit Accounts Work
SIPP deposit accounts function much like standard bank accounts but are held within your pension wrapper.
You can move money in and out of the deposit account to invest in other SIPP-eligible assets, such as funds, shares, or property.
Interest is paid on your cash balance, and you can choose between fixed-term and easy-access options depending on your needs.
Types of SIPP Deposit Accounts
There are several types of SIPP deposit accounts, each with distinct features:
Fixed-Term Deposit Accounts
These accounts offer a fixed interest rate for a set period, usually 1–5 years.
They are ideal for those who do not need immediate access to their funds and want to lock in a higher rate.
Easy-Access Deposit Accounts
These accounts allow you to withdraw funds at any time, usually with a variable interest rate.
They are suitable for those who want flexibility and quick access to cash.
Notice Accounts
Notice accounts require you to give advance notice (e.g., 30, 90, or 180 days) before withdrawing funds.
They often offer higher rates than easy-access accounts but less flexibility.
Tax Benefits of SIPP Deposit Accounts
SIPP deposit accounts share the same tax advantages as other SIPP investments:
- Contributions receive tax relief at your marginal rate.
- Interest earned within the SIPP is tax-free.
- You can take up to 25% of your SIPP as a tax-free lump sum at retirement.
- Withdrawals beyond the tax-free lump sum are taxed as income.
For more on SIPP tax benefits, see our SIPP Good Idea guide.
Best SIPP Deposit Accounts & Interest Rates in 2025
Interest rates and features vary by provider and account type.
Below is a summary of top SIPP deposit accounts and their key features for 2025:
| Provider | Account Type | Interest Rate (AER) | Min Deposit | Access Type | FSCS Protected? |
|---|---|---|---|---|---|
| BestInvest | Flat Rate | 3.73% | £1 | Easy Access | Yes |
| AJ Bell | Tiered | Up to 2.95% | £1 | Easy Access | Yes |
| Interactive Investor | Tiered | Up to 3.25% | £5,000 | Easy Access | Yes |
| Hargreaves Lansdown | Tiered | Up to 3.2% | £1 | Easy Access | Yes |
| Teachers Building Society | Easy/Notice/Fixed | 1.25–4.05% | £1,000 | Various | Yes |
| Mansfield Building Society | Fixed/Easy/Notice | 1.25–4.10% | £25,000 | Various | Yes |
| Cater Allen | Fixed-Term | 4.40% (1–2 years) | £85,000 | Fixed | Yes |
| United Trust Bank | Notice | Up to 5.00% | £5,000 | 200-day Notice | Yes |
| Scottish Widows | Easy Access | 1.35% | £500 | Easy Access | Yes |
*Rates and terms are subject to change. Always check with the provider for the latest details.
For a full comparison, visit our Best Low-Cost SIPP guide.
Pros and Cons of SIPP Deposit Accounts
SIPP deposit accounts offer a range of benefits and drawbacks.
Here’s what you need to know before deciding if they’re right for your pension strategy.
Advantages
- Security: FSCS protection up to £85,000 per provider.
- Stable Returns: Predictable interest, less volatility than stocks.
- Liquidity: Easy access and notice accounts provide flexibility.
- Tax Benefits: Tax-free growth and tax relief on contributions.
- Capital Guarantee: No risk of losing your initial deposit (except in rare provider failure).
Disadvantages
- Lower Returns: Interest rates are generally lower than potential stock market gains.
- Inflation Risk: Returns may not keep pace with inflation, eroding purchasing power.
- Limited Growth: Cash does not benefit from long-term market growth.
- Minimum Deposits: Some accounts require high minimum balances.
How to Choose the Best SIPP Deposit Account
Selecting the right SIPP deposit account requires careful consideration of your needs and goals.
Here are three key points to guide your decision:
- Compare Interest Rates: Look for the highest rates available, but balance this with access needs and minimum deposit requirements.
- Check Fees and Charges: Some providers charge account or transaction fees that can eat into your returns.
- Assess Flexibility: Decide if you need instant access, are comfortable with notice periods, or want to lock in a fixed rate.
Alternatives to SIPP Deposit Accounts
If you want to diversify your pension or seek higher returns, consider these alternatives:
- Stocks and Shares: Potential for higher growth but with greater risk.
- Bonds and Gilts: Offer steady income and lower risk than equities.
- Property Funds: Exposure to commercial property markets.
- Ethical and ESG Funds: Invest according to your values.
Common Questions
Top choices include BestInvest (3.73% flat rate), AJ Bell (up to 2.95% tiered), and Teachers Building Society (up to 4.05% fixed).
Compare interest rates, fees, access terms, and FSCS protection.
Consider your retirement timeline and need for liquidity.
Yes, most are protected up to £85,000 per provider.
Yes, you can transfer cash from another SIPP or pension into a SIPP deposit account, subject to provider rules.
Main risks include inflation eroding returns and lower growth compared to other investments.
Contact your SIPP provider, complete an application, and fund the account.
For guidance, see our Opening a SIPP guide.
Yes, you can hold multiple accounts within your SIPP, but check for provider restrictions and FSCS limits.
In Conclusion
SIPP deposit accounts are a valuable tool for pension savers seeking security, flexibility, and stable returns.
By comparing rates, understanding fees, and aligning your choice with your retirement goals, you can make the most of your pension cash.
Always review the latest rates, use comparison tools, and seek professional advice if needed.
Disclaimer:
All information in this article was accurate as of July 2025. Rates, terms, and provider details may change. Always check with providers and consult a qualified adviser before making decisions.
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