Man of Honour
Can only save £50 a month and need to have been a member with saffron building society since last June.
Great for grabbing the headlines but I can't see them needing to pay out that much in interest.
Best savings account?
- Thread starter Merlin5
- Start date
Great for grabbing the headlines but I can't see them needing to pay out that much in interest.
I just read this on the moneysavingexpert site.
"Important! On multi-year accounts, you're taxed on interest in the tax year you can access that interest."
Is this a recent change or has it always been like this? I've been declaring it on the year it was credited in my savings account, not when I can access it at maturity.
"Important! On multi-year accounts, you're taxed on interest in the tax year you can access that interest."
Is this a recent change or has it always been like this? I've been declaring it on the year it was credited in my savings account, not when I can access it at maturity.
Pretty sure it's always been that way but for the last 15 years nobody's been earning any interest.
Is this a fixed bonds account ?
Im possibly going to start splitting put some in premium bonds some in a fixed bond for 9 months or a year. Can anyone reccomend a good high earner for a 6/9/12 month fix bonds ? Low risk
I have a question you guys might be able to help me out with.
With interest rates way they are I'm potentially close to breaching the 500 pounds tax free allowance. A lot depends on how interest is paid.
I have a nationwide 3 year fixed bond I took out in December.
I put 5k in it.
I wanted to check how interest and tax works on this. If the interest all arrives at end of the term this will breach the 500gbp that year. If its paid and taxed each year it will not.
The important clause in the fixed rate bond is
We'll pay the interest on the anniversary of the date you opened your account (regardless of when the account was funded), at the end of the term, and on the day your account closes.
I will contact them. But I'm a bit unclear on if this means I get and can count the interest each year?
I also have 2 regular savers which will generate about 120 each this tax year.
I'm hoping I've got it right to just avoid tax every year!
With interest rates way they are I'm potentially close to breaching the 500 pounds tax free allowance. A lot depends on how interest is paid.
I have a nationwide 3 year fixed bond I took out in December.
I put 5k in it.
I wanted to check how interest and tax works on this. If the interest all arrives at end of the term this will breach the 500gbp that year. If its paid and taxed each year it will not.
The important clause in the fixed rate bond is
We'll pay the interest on the anniversary of the date you opened your account (regardless of when the account was funded), at the end of the term, and on the day your account closes.
I will contact them. But I'm a bit unclear on if this means I get and can count the interest each year?
I also have 2 regular savers which will generate about 120 each this tax year.
I'm hoping I've got it right to just avoid tax every year!
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Interest is taxable on the date it is received. If the bond only pays all 3 yrs if the interest in 1 go at the end of the term, that's how you account for it, and tbh, that's how it sounds with the way it's worded.
It's why imo ISA's are becoming more relevant again with the higher interest rates.
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9 months 4.85% 12 months 5.1% https://www.atombank.co.uk/
12 months 5.16% https://smartsavebank.co.uk/1-year-fixed-rate-saver
No risk with saving below 85k.
The 9% account is not relevant.
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Seems clear, you can access the interest at the end of term so it will all be taxable in that tax year.
Thanks
Associate
This £500 limit tax free a year is just a right pain in ass now interest rates are where they are.
I bet there are a lot of people who don't realise they will go over that limit this year..
I bet there are a lot of people who don't realise they will go over that limit this year..
Soldato
That's where ISAs are your friend. The rates aren't as good but will probably work out better (depending on the sum deposited) vs savings accounts after tax.
Is it better to earn nothing and pay no tax or earn something and pay tax?
Associate
It's better to earn interest and use ISAs to avoid tax, but it needs some management
I had a calendar that had a saying on it every day, my two favourite were
"There's only one thing worse than paying income tax, and that's not paying income tax" and
"A second marriage is a triumph of hope over experience"
Wasn't sure if anniversary meant every year. They could just say "at the end of the term"
Worked out out will only pay tax on 70 but still annoying as won't use any regular savers that year.
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Will be from now.
Soldato
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Soldato
- Joined
- 13 Sep 2005
- Posts
- 4,345
I have it down as start of July if I remember right.