Can you dump even more in without getting taxed? im on a higher tax bracket because of work,
I want to try and make atleast £100 or more on interest per month if possible.
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- Thread starter Feek
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Can you dump even more in without getting taxed? im on a higher tax bracket because of work,
I want to try and make atleast £100 or more on interest per month if possible.
Associate
Being in the higher tax bracket means you're a bit screwed. I think you can only warn £500 interest before you start getting taxed. What is your final taxable pay though? This can be different to your salary figure. Mine is as I pay into pension via salary sacrifice (pre tax).
200sols mentioned Gilts if you fall into the higher tax bracket. I've never heard of those but they're maybe something you should look into.
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Soldato
ISAs are pretty much unbeatable for any higher tax payers (once you get into taxable interest range)
Fixed or variable terms, typically 1,2,3,5 available or instant. Instant will be lower rate, but after tax still better than non ISA and paying tax.
Other advantage of ISAs is the interest remains in a tax free wrapper so interest on your interest also avoids tax.
If you earn £1k interest in a normal account the following year that is added to you amount earning interest so your closer or have more thats over the limit.
There are ISA millionaires out there, paying no tax on £1M accounts. (Although I think mainly they are S&S as opposed to cash they could convert at any time)
This may be helpful
www.moneysavingexpert.com
Short fixes, 1-2 years look ok. I mean 5 as well if you can really lock it in for that long.
Fixed or variable terms, typically 1,2,3,5 available or instant. Instant will be lower rate, but after tax still better than non ISA and paying tax.
Other advantage of ISAs is the interest remains in a tax free wrapper so interest on your interest also avoids tax.
If you earn £1k interest in a normal account the following year that is added to you amount earning interest so your closer or have more thats over the limit.
There are ISA millionaires out there, paying no tax on £1M accounts. (Although I think mainly they are S&S as opposed to cash they could convert at any time)
This may be helpful
Top cash ISAs 2024/25
Get tax free interest on savings of up to £20,000. Martin Lewis compares the best ISA rates in our top picks cash ISA guide to get the most from your savings.
www.moneysavingexpert.com
Short fixes, 1-2 years look ok. I mean 5 as well if you can really lock it in for that long.
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My final taxible pay is very hard to determine, as i do on call and overtime, so i could do 10 overs of overtime and 2 on call hours per month, or i could do 26 hours of overtime and 4 hours on call, on call retention ,plus over the year i get bonus and payments,
so its hard to judge, but yes i would probably be subject to getting taxed on the savings.
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Associate
Certainly more tricky for you to mange the situation. Looks like it's Gilts or an ISA for you then. Fixed ISA rates are pretty decent too currently. 5.9% for a fixed two year. On 20k investment that'd be around £98 a month interest earned.
Caporegime
Website is absolute AIDS. Clicking on the button to view prize history keeps saying I’ve used the back button so logs me out. Of the hundreds of websites I use this is consistently the worst.
Soldato
With 50k spare are you not tempted with the higher rates on offer for Bonds today? Llyods for example are offering 5.5% on a one year Bond, @ 50k thats £2750 in your pocket at the end of the year.
Soldato
Nothing again.
Soldato
People buy PB's for the thrill of maybe winning something every month.
You get taxed on that though.
£250 for second month in a row here, 50k in
I've thought about it but the thought of getting one of the larger prizes still keeps me, also my winnings over the last 12 months are not far off the £2750 anyway, and its tax free.
Soldato
£350 on £50k
after 2 months of nothing though
after 2 months of nothing though
I used them as an easy access savings account while interest rates were going up as the average return was usually competitive with other easy access accounts. Moved it to a fixed savings account last month as I thought rates were probably getting close to their peak.