Bank Interest
How we share bank interest
This page details our approach to sharing bank interest with our SIPP and SSAS clients.
Our active management of customer cash means we can credit our customers with a competitive rate of interest. We retain some of what’s earned so we can keep our charges low, as well as investing in our technology and propositions and in providing higher service levels. Our aim is to deliver excellent financial outcomes for our customers, and ultimately help make their retirement more rewarding. Details on our sharing policy are displayed online below along with the actual rates applied to customer accounts, and the level of cash interest rates retained is shown on client illustrations.
The amount of interest we share with customers will be determined by the Bank of England Bank Rate and the annualised rate of interest achieved by Curtis Banks. We update and disclose this figure at the start of each calendar quarter.
The Bank of England Bank Rate as at 1 October 2024 was 5.00%
The annualised gross interest rate we earned in the quarter 1 June 2024 to 31 August 2024 was 5.78%
The effective rate of interest that we will share with you from 1 October 2024 will be 3.24%
How much interest we share
What does a Bank Rate change mean for our customers?A change in Bank Rate directly affects the amount of interest available which we may apply to any cash that customers hold in their SIPP bank account. This means that the interest customers receive is not guaranteed to stay the same, and is likely to change if the Bank Rate changes. It can go up or down.
The interest rates payable to customers’ plans operate on a tiered basis, which means that the higher the Bank Rate, the greater the proportion of interest we pay to their plan.
The rate of interest earned by Curtis Banks will be updated each quarter.
The following table shows the Bank of England Bank Rate, interest rate earned by Curtis Banks and interest shared with customers:
| Quarter beginning | Bank of England Rate | % interest earned | % interest shared |
|---|---|---|---|
| 2022 Q1 | 0.25% | 0.79% | 0.00% |
| 2022 Q2 | 0.75% | 0.82% | 0.11% |
| 2022 Q3 | 1.25% | 1.07% | 0.28% |
| 2022 Q4 | 2.25% | 1.51% | 0.57% |
| 2023 Q1 | 3.50% | 2.19% | 1.03% |
| 2023 Q2 | 4.25% | 3.33% | 1.72% |
| 2023 Q3 | 5.00% | 4.20% | 2.35% |
| 2023 Q4 | 5.25% | 5.06% | 2.92% |
| 2024 Q1 | 5.25% | 5.44% | 3.13% |
| 2024 Q2 | 5.25% | 5.59% | 3.22% |
| 2024 Q3 | 5.25% | 5.55% | 3.33% |
| 2024 Q4 | 5.00% | 5.78% | 3.24% |
More information on bank interest
The interest rates payable to our customers’ plans, explained in the table above, operate on a tiered basis. The tiered system we apply means that the higher the Bank Rate, the greater the proportion of interest we pay to customers’ plans.
The rate of interest earned by Curtis Banks will be updated each quarter. The tier levels are set by Curtis Banks and are subject to change without notice.
If the balance of a customer’s bank account is £10,000 for a 12 month period, the Bank Rate is 5.00% and the annualised rate of interest earned by Curtis Banks is 5.78%; the plan will receive interest on each tier as follows:
| Bank of England Bank Rate tier | Proportion of interest paid to your plan | Amount of interest paid to your plan |
|---|---|---|
| 0.5% or below | 0% | (0.50/5.00) x 0% x 5.78% x £10,000 = £0.00 per year |
| 0.51% – 1.00% | 40% | (0.50/5.00) x 40% x 5.78% x £10,000 = £23.12 per year |
| 1.01% – 2.00% | 50% | (1.00/5.00) x 50% x 5.78% x £10,000 = £57.80 per year |
| 2.01% – 3.00% | 60% | (1.00/5.00) x 60% x 5.78% x £10,000 = £69.36 per year |
| 3.01% – 4.00% | 70% | (1.00/5.00) x 70% x 5.78% x £10,000 = £80.92 per year |
| 4.01% – 5.00% | 80% | (1.00/5.00) x 80% x 5.78% x £10,000 = £92.48 per year |
| 5.01%+ | 90% | (0.00/5.00) x 90% x 5.78% x £10,000 = £0.00 per year |
| Total | £323.68 per year |
This will give the plan a total annual interest of £323.68 with an effective rate of interest of 3.24%
A change in Bank Rate directly affects the amount of interest available which we may pay to customers’ plans. The Bank of England Bank Rate at the start of each calendar quarter will determine how much interest will be applied to any cash that a customer holds in their SIPP bank account. This means that the interest they receive is not guaranteed to stay the same, and is likely to change if the Bank Rate changes. It can go up or down.
The impact of changes in the Bank Rate is shown in the table below and this will be applied to the annualised rate of interest achieved by Curtis Banks:
| Bank of England Rate | Proportion of interest paid to your plan |
|---|---|
| 0.5% or below | 0% |
| 0.51% – 1.00% | 40% |
| 1.01% – 2.00% | 50% |
| 2.01% – 3.00% | 60% |
| 3.01% – 4.00% | 70% |
| 4.01% – 5.00% | 80% |
| 5.01% or above | 90% |
In the extraordinary event that the Bank Rate drops below zero, no interest will be paid to customers’ plans. Curtis Banks reserves the right to recoup any costs associated with operating the SIPP bank account under our product specific Terms and Conditions for customers’ plans. We will inform our customers of any charges, giving them as much notice as reasonably possible, which will generally be at least 30 days in line with the product specific Terms and Conditions of their plan.
The Bank of England’s Monetary Policy Committee is responsible for setting the UK’s Bank Rate. The Bank Rate determines the rate of interest that the Bank of England pays to commercial banks that deposit money with them. It influences the rates those banks charge people to borrow money or pay on their savings. If the Bank Rate changes, the interest rates that apply to financial products can change too as the cost of providing some products is strongly influenced by the Bank Rate.
The information on this page is applicable to most Curtis Banks products. A small number of exceptions are detailed below. Clients can also refer to their illustrations for specific information on their plan.
Exceptions include:
Clerical Medical Self Invested Fund & Prudential Self Invested Fund
For these products we pay the base rate less 0.4%. If the base rate is less than 0.4% then no interest is paid.
Zurich Personal Pension Plan (No 3Z) Scheme
For this product we pay the base rate less 1%. If the base rate is less than 1% then no interest is paid.
ESIPP and CSIPP
These products do not share bank interest as they have twice-weekly sweeps of any cash balance in SIPP bank accounts to requested investments, unless there is an upcoming benefit payment due.
SSAS
Our SSAS products typically share the same amount of interest as our SIPP products, as detailed on this page. The amount of interest retained can vary as each SSAS has its own individual bank account which may earn a different rate interest.
Cater Allen accounts
There are also a small number of plans within two legacy products that have different banking arrangements provided by Cater Allen. These products are St. James’s Place Self Invested Personal Pension Plan with Cater Allen and Curtis Banks Full SIPP with Cater Allen. For these two products we earn 0.01% but we share 1.44% with clients. Specific details are included on client illustrations.
Our SIPPs’ and SSASs’ offer a wide range of investment choice for savers looking for better returns than may be available through the SIPP bank account.
We provide access to a range of cash investment options including fixed term, fixed rate and notice accounts with the ability for clients to open accounts directly with us, or through an investment firm from our panel of approved providers.
We also offer access to cash platforms which can provide an easier way to compare rates and manage multiple cash accounts, without having to complete a new application each time.