Deferred interest

sloughflint

Anglo-Irish did 2 years but again annual interest.
I think you are going to struggle with good rates and maturity payment and 35k limitation for the sums involved.

ps2659

sloughflint wrote: »

I was about to do a calculation to see the implications of comparing the Halifax account and a higher paying one that insists on interest paid out annually....
until I realised that even the Halifax pays interest annually on terms longer than a year.
http://www.halifax.co.uk/savings/ImportantInfo/impinfo_guarreserve.asp

Many thanks for your effort looks like I am stuck but I do need a way to defer interest on any savings/investment until 06/04/2010 or the tax man will want a larger slice. :mad:

RayWolfe

There are not many who give you the opportunity of interest payment at maturity. Halifax is the only one I know of, hence my post no. 2.

Mikeyorks

ps2659 wrote: »

.... looks like I am stuck.....

Depends on whether you view the currently highest rate - or deferring the interest as the more important? It's going to be a compromise, as the 2 requirements are unlikely to be met within the same product.

I had the same problem a few years ago - and put some into term deposits and a max into Premium Bonds! The Premium Bonds then returned 10% over the following 9 months... until I was unwise enough to post that fact on one of the threads on here. At which point the bottom dropped out.

Term deposits or NS&I Index Linked are the options ...... as you cant 'invest' and have '100%' surety. A GEB is another option .... but I wouldn't recommend the majority on the High St .... and it falls far short of '100% safe that will earn a good rate of interest' ..... from your OP.

ps2659

Mikeyorks wrote: »

Depends on whether you view the currently highest rate - or deferring the interest as the more important? It's going to be a compromise, as the 2 requirements are unlikely to be met within the same product.

I had the same problem a few years ago - and put some into term deposits and a max into Premium Bonds! The Premium Bonds then returned 10% over the following 9 months... until I was unwise enough to post that fact on one of the threads on here. At which point the bottom dropped out.

Term deposits or NS&I Index Linked are the options ...... as you cant 'invest' and have '100%' surety. A GEB is another option .... but I wouldn't recommend the majority on the High St .... and it falls far short of '100% safe that will earn a good rate of interest' ..... from your OP.

Thanks for your input however the deferred interest is most important together with the 100% safety, me and the wife have been fully invested in premium bonds for many years but nothing like the 10% return you obtained we have just applied for indexed linked saving certs from the post office and just need to invest more money were interest will be paid after 6th april 2010, surely there must be another savings institution that pays on maturity like kaupthing edge.

RayWolfe

Yes, I did see it AND Halifax offer both annual OR end of term interest. I have three of them, so I do know. ;-)

Mikeyorks

ps2659 wrote: »

surely there must be another savings institution that pays on maturity like kaupthing edge.

Yes - as other posts - Halifax fixed rate products do. I only needed to defer interest for some 10 months or so (until after the next 5th April) - and used Halifax fixed term deposits. But even the 2 year one you need .... pays on maturity.

sloughflint

I'll remove my earlier post. Incredible how one small sentence can be interpreted differently. It's perfectly clear in the pdf document though.

Ps2659,unless you are a high rate tax payer, I think you would be better off with Icesave and paying tax on the first year's interest @20% than the Halifax account.
1.05648*1.0706>1.057*1.057

ps2659

RayWolfe wrote: »

There are not many who give you the opportunity of interest payment at maturity. Halifax is the only one I know of, hence my post no. 2.

Does anyone know for sure if ICICI do a fixed bond for 2 years with interest paid at maturiy a friend has called this morning and said he was sure but not 100% if interest is added annually, what is this bank like re the £35000 protection.

ps2659

sloughflint wrote: »

Yes. 6.65% with early access or 7% without access.

1. How and when will I receive interest on my HiSAVE Fixed Rate Account? Interest shall be calculated and accrued daily and shall be paid at the end of the term.

http://www.icicibank.co.uk/hisave_fixedrate.html

For safety:
http://www.moneysavingexpert.com/savings/safe-savings
100% covered by the UK's FSCS

I am still looking for a bank that I can invest in with a decent interest rate that will pay interest on maturity in 2 years time rather than annualy. I have just invested for 3 years with Kaupthing Edge and then tried with icici but this must be the worst institution I have ever dealt with, catalouge of errors trying to open account 2 online applications 4 telephone calls still no joy I would not feel comfortable investing with this outfit, grateful for any help.