James Hay products are linked to a bank account, held with either Santander or Barclays depending on the product you open (as set out in the tabs below). The bank account is opened when the product is set up.

The product bank accounts are set up when each product is opened and exist as a facility account to hold uninvested cash. They are not designed for investment growth or to be a substitute for investment.

The Santander bank account is the primary bank account for the listed products.

Modular iPlan and Wrap

The product bank account currently earns an interest rate of 0.00001%. (a variable rate that James Hay will amend from time to time, but subject to a minimum earned interest of 0.00001%).

Additional banking arrangements

From 1st November 2017, we may use additional bank providers to hold some of the cash that would normally be held in the product bank account. Each additional banking provider will only ever hold up to the current Financial Services Compensation Scheme (FSCS) limit excluding cash held in fixed term deposits via the cash panel, which is currently £85,000.

If your product(s) is affected by the use of additional banking arrangements, you will have the opportunity to opt out as part of the application process. If alternative banking applies to your product, you can opt out or in at any time on James Hay Online.

The additional banking providers we use are listed below.

Metro bank

More about Metro

Applicable to SSAS

The Barclays bank account currently earns an interest rate of:

  • 0.1% gross p.a. on balances of £50,000 and over (calculated as 0.4% below the Bank of England base rate, but subject to a minimum earned interest of 0.1%)
  • 0.1% gross p.a. on balances under £50,000 (calculated as 0.6% below Bank of England Base rate, but subject to a minimum earned interest of 0.1%).

Below are some commonly asked questions and answers in relation to the product bank accounts.

 

What is the product bank account?

The product bank account is a cash account linked to your James Hay Partnership product. The account is set up in the name of the trustees for SIPP and SSAS products or in the underlying investor’s name and operated under power of attorney for ISA, GIA, and Wrap (excluding Wrap SIPP).

What does this account do?

The product bank account is used to accept all cash transfers, and any money paid into the product as well as receive proceeds of any sales, dividends or rebates which may subsequently be made. It is also used by James Hay to deduct product and adviser charges and facilitate payments out of the product (including income payments, where applicable).

Can the product bank account be used to invest in?

The product bank account acts like a current account and is not designed to hold long term cash balances. We offer a competitive range of fixed rate deposit accounts from leading banks should a bank account be required for investment purposes (not available on the IPS SIPP, IPS (2008) SIPP, IPS Pension Builder SIPP, IPS Family SIPP and SSAS). Please see our Cash Panel for further details.

Should a minimum balance be maintained in the product bank account?

There is no minimum requirement but we suggest a minimum balance of around £1,000 is maintained at all times to facilitate money movements in and out of the product.