The 50k protection

skronk

We have a joint account with HBOS at about max. protection level. We have had it for some time.

I have now retired and intend to change the joint to a single account in my name to minimise tax.

Will I be covered for the max. 50k ?

Thanks

Swipe

Yes, you'll be covered up to a max of £50k on a single account

skronk

Swipe wrote: »

Yes, you'll be covered up to a max of £50k on a single account

Even though the original joint account was in operation well before the 50 k limit came in ?

opinions4u

£100k is the maximum protection level for a joint account.

If you transfer it all in to your name the protection becomes £50k.

If you have concerns, leave £47k in HBOS (to allow for interest to accrue), £47k somewhere else and if there's anything more than this bang that in a third institution!

Alternatively, take a view that the government is prepared to prop up our wobbly banking system and leave it all where it is!

silvercar

You can have a joint account but declare that all the interest belongs to one party.

skronk

I did not know that Slivercar. Thank you.

opinions4u

silvercar wrote: »

You can have a joint account but declare that all the interest belongs to one party.

This is accurate, but needs to be declared in advance to the Inland Revenue. You won't be able to register via R85 etc.

juicyjude

Oh silvercar, thanks for that info, nice one as I hope to finish work next year and wont be a taxpayer