CMC Invest, the D2C investment platform owned by multi-asset broker and fintech, CMC Markets has added a new service to its product range in the shape of a SIPP or Self-invested Personal Pension.
The new SIPP offering will be available to CMC Invest Premium account holders and will come free of charge for the first 12 months. What’s more, SIPP holders will be able to trade at zero commission (other charges may apply), within their plan.
For comparison, a SIPP holder at Hargreaves Lansdown, one of the country’s largest SIPP providers with an investment of £60,000, split two-thirds a third, between bonds and stocks would currently pay the Bristol-based firm £22.50 per month in fees.
What is a CMC Invest SIPP?
A Self-invested Personal Pension or SIPP, is a class of personal pension plan in the United Kingdom, that allows individuals to make their own investment decisions about their retirement savings.
Here are some key features of a SIPP:
With a SIPP, you have a wide range of investment options, including stocks, bonds, mutual funds, exchange-traded funds (ETFs) and more. This flexibility allows you to tailor your investments according to your risk tolerance and investment goals.
As with other personal pension schemes, contributions to a SIPP are eligible for tax relief, reducing your overall tax liability and boosting your investments. The money within the SIPP grows tax-free, and you can access your pension savings from the age of 55 under current legislation.
SIPPs are portable, meaning you can transfer them from one provider to another if you are unhappy with the service or want to consolidate multiple pensions.
With a SIPP, you have greater control over your retirement savings and investment decisions, as opposed to traditional personal pension plans where investment decisions are made by the provider. Though, of course, that puts the onus of performance firmly in your court.
Overall, SIPPs are designed for self-determined individuals who want to take an active role in managing their retirement savings and who have a good understanding of investment principles.
Transfer Bounty
CMC Invest is also offering existing and prospective clients, who already have SIPP with a competitor, the opportunity to switch to CMC and earn up to £1,000 when they transfer a minimum investment of £25,000.
The transfer bounty starts at £350 and scales up to £1,000, in three increments, for those who transfer £100,000 of investments or more to CMC Invest.
CMC Invest already offers a Flexible Stocks & Shares ISA and a General Investment Account (GIA), the addition of the SIPP account rounds out their offering.
However, it remains to be seen if the firm will offer the service to its non-premium accounts going forward.
The Premium plan is free for the first 12 months and then clients will pay up to £25 per month thereafter.
At the same time, CMC Invest is offering free access to its Plus account tier for three months, after which it reverts to a £10 per month fee.
For now, the only appreciable difference between the Premium and Plus accounts is access to the SIPP.
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