The following products have bank accounts which allow money to be held in them without being invested:

  • Active Money Personal Pension (AMPP)
     
  • Active Money Self Invested Personal Pension (AMSIPP)
     
  • Personal Pension (PP)
     
  • Group Self Invested Personal Pension (GSIPP)

Bank accounts are designed for short-term use, like holding money before making investments, paying retirement income, or covering charges that may apply on your clients’ plans. 

We pay interest on money held in these accounts. The rate of interest we currently pay is 1% below the Bank of England (BoE) base rate.
 

What’s changing and why?

In March 2026, we’re changing the rate of interest paid on bank accounts from 1% below the BoE base rate to 1.5% below the BoE base rate. This means your clients will be paid less interest.

To reflect this change, we’re updating the terms and conditions*. This includes changes to the way we describe the bank account. These changes can be found in Section 6.

We regularly review the running costs of the products and services we offer – and this change allows us to make sure the products and services we offer continue to meet the needs of your clients.
 

What does this mean for you?

You and your clients don't need to do anything.

We’re writing to clients who hold cash in the affected products to give them three months' notice of the interest rate change – and to confirm we're updating the product terms and conditions. We'll also add information about this change to clients' annual benefits statements from March 2026.

View a pdf copy of the example client letter.
 

What does this mean for your clients?

The table below shows an example of the interest that would be paid to your clients each year:

Annual interest breakdown Before the change After the change

Interest paid to your clients

 3%

2.5%
Amount for every £1,000 in
the bank account		 £30.00 £25.00

The above example is based on:

  • The BoE base rate as of 6 November 2025, which is 4%.
     
  • A balance of £1,000 that remains unchanged over the course of a year.

The actual interest your clients receive will vary depending on their balance and future changes to the BoE base rate.

*Direct links to updated terms and conditions: 

 

More information

 

The information on this site is for qualified financial advisers and must not be relied on by anyone else. If you are not an adviser please go to our customer website for more information about our products and services.