Kaupthing Edge and the Interest

stoneroses89

Hello,

Ive got savings of about 35k in LLOYDS TSB Gold Account exclusive which basically ive found out today has an interest rate of 2.9% gross which pays me about £75 a month.
After learning a bit on this site in the last week ive realised im losing a fair bit of interest a month and am keen to make my savings work harder.
Im looking at transferring to Kaupthing Edge,my question is if its 6.36% gross interest how much would i get on 35k a month probabably around £160 ive worked out.

Also ive learnt about the £35000 safeguard,would it be possible to keep the balance at this and withdraw the interest everymonth???

whu

the amount of interest depends on whether you are a 20% or 40% tax payer- you can withdraw the interest monthly to the linked account as the easy access savings account pays interest monthly

dag_2

I reckon you'd probably get £185.50-ish gross a month, or £148.40-ish after tax.

Unless I'm greatly mistaken, 40% tax is never deducted at source. If you're liable for tax at 40%, then it's your responsibility to tell the HMRC about it.

exel1966

stoneroses89 wrote: »

Hello,

Ive got savings of about 35k in LLOYDS TSB Gold Account exclusive which basically ive found out today has an interest rate of 2.9% gross which pays me about £75 a month.
After learning a bit on this site in the last week ive realised im losing a fair bit of interest a month and am keen to make my savings work harder.
Im looking at transferring to Kaupthing Edge,my question is if its 6.36% gross interest how much would i get on 35k a month probabably around £160 ive worked out.

Also ive learnt about the £35000 safeguard,would it be possible to keep the balance at this and withdraw the interest everymonth???

£189 gross or £151 net at 20% in a 31 day month
£183 gross or £146 net at 20% in a 30 day month

at a rough estimate, + a few pennies.

I'd move it pretty quick If I were you !

whu

dag wrote: »

I reckon you'd probably get £185.50-ish gross a month, or £148.40-ish after tax.

Unless I'm greatly mistaken, 40% tax is never deducted at source. If you're liable for tax at 40%, then it's your responsibility to tell the HMRC about it.

you are correct ( I should have made it clearer in my previous post)- 20% deducted at source and then you tell Inland Revenue if you are a 40% tax payer and they will usually deduct the extra 20% through your tax code

stoneroses89

cheers for the response,i will be moving my cash out fast!!!just set up a KE account today!!cancelling the £12 a month Gold account aswell.