Best savings account?

If you already do SA surely it is worth not worrying about the extra interest going over the threshold because you could be gaining more than being under?

e.g. If your threshold is £1000 and you gain say £1200 then it is the £200 being taxed at 20% then you'd still get £160?

So you have £1160 as opposed to £1000 or have I got that wrong?

I can imagine the 40% tax being a royal pain but then again you'd eeek a bit more?
 
ddoubleep said:
If you already do SA surely it is worth not worrying about the extra interest going over the threshold because you could be gaining more than being under?

e.g. If your threshold is £1000 and you gain say £1200 then it is the £200 being taxed at 20% then you'd still get £160?

So you have £1160 as opposed to £1000 or have I got that wrong?

I can imagine the 40% tax being a royal pain but then again you'd eeek a bit more?
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Probably better off going with an ISA rather than paying the extra tax unless you're just a little bit over and it isn't worth the faff. Maybe for 20%, certainly for 40%+ tax.
 
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Yes ISA is close enough that even 20% tax payer is better off.
EG Shawbrook bank is 4.58% on its variable cash ISA.
Santander needs to be 4.58% / 0.8 = 5.725% to make it worth paying the tax for a 20% tax payer above the £1000 limit.
And 4.58% / 0.6 = 7.633% to make it worth paying tax for a 40% tax payer above the £500 limit.

The other consideration is based on how long you think this "high" interest position may go on for.
The interest in the ISA remains tax free as well as it compounds where as the outside ISA always remains taxable

Of course people may max their ISA contributions and end up having to pay on savings.
If your the sort of person who can make £20k savings annually then its worth a bit of planning.
It times of very low interest rates its still potentially worth paying into an ISA and accepting a slightly lower rate. When rates go high then you will benefit a lot.
Although again, if you have high savings you may not be making best use of those funds.
 
ddoubleep said:
If you already do SA surely it is worth not worrying about the extra interest going over the threshold because you could be gaining more than being under?

e.g. If your threshold is £1000 and you gain say £1200 then it is the £200 being taxed at 20% then you'd still get £160?

So you have £1160 as opposed to £1000 or have I got that wrong?

I can imagine the 40% tax being a royal pain but then again you'd eeek a bit more?
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Its more the faff. I start having to get all statements together rather than just ticking a box that says "under 500".

And yes, isas are better as I don't typically fill my isa allowance.

So I aim for 450 ish of interest. Knowing I'll get about 20 quid from current account. Then I know I'm under 500.

I need easy access at the moment, and easy access isa are terrible.

Rest goes in S&S ISA usually
 
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Just read my welcome email attachment from Santander and it's for a Easy Access Saver (Issue 24) at 2.5% despite applying before the deadline last night.

Will wait for my details through the post so I can log in and check but will be closing the account if it's less than advertised.
 
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Looking for a normal savings account to drop the odd bit of spare cash into now and again.

Obviously passbooks are now a thing of the past but looking for something that has an ATM card for both paying in and taking out. So far the only bank/BS I can see with one is Nationwide.

Not bothered about the interest rate as main funds already nicely invested, this is just a rainy day account to keep a few £hundred sitting around in.
 
Pigeon_Killer said:
Just read my welcome email attachment from Santander and it's for a Easy Access Saver (Issue 24) at 2.5% despite applying before the deadline last night.

Will wait for my details through the post so I can log in and check but will be closing the account if it's less than advertised.
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That sucks.
Mine opened at 2am and has 5pc attached
 
Marcus have increased the interest rate to 4.60% including the bonus which can also be renewed for another year if you already have it.

Most of my dosh is in Tandem at 5% but it looks like they have withdrew the bonus for new account openings. I still keep some savings in Marcus though.

Edit: Scratch that, looks like Tandem are doing 5% again for new accounts. :cool:
 
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Pigeon_Killer said:
Just read my welcome email attachment from Santander and it's for a Easy Access Saver (Issue 24) at 2.5% despite applying before the deadline last night.

Will wait for my details through the post so I can log in and check but will be closing the account if it's less than advertised.
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How do you know it's 2.5%? Does it say that in a PDF attached to the confirmation email? Or does it show that on the actual account? I have not had my stuff through in the post yet to set it up online.
My PDF doc says the 5.08 / 5.2% rate.
 
jaybee said:
How do you know it's 2.5%? Does it say that in a PDF attached to the confirmation email? Or does it show that on the actual account? I have not had my stuff through in the post yet to set it up online.
My PDF doc says the 5.08 / 5.2% rate.
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It was the attached document. I've since had an email apologising for sending incorrect details and it'll be the 5.2% rate so all good for me, hopefully.
 
Am I reading this right. Pay monthly isa account Skipton building society 4.7% 4.7%

(rate will track 0.55% below the Bank of England base rate for 24 months)

This means it could go lower during the year so a variable ?

Interest paid monthly or annual no penalties for withdraw ?

Is there anything better out there in terms of isa or I would even go for another notice account 2-3 days ? Like premium bonds
 
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