Confused about gross interest please help

juicyjude

I am thinking of taking out a 12 month fixed rate bond now with interest at maturity instead of monthly as my income from all these F R bonds is quite good. Could anyone tell me if I take one of these out now and I get the interest in say July 2010 will I have to take the interest from now till April 5th 2010 into consideration and work it out as on this years tax allowance or tax year 2010/2011 when I actually receive the interest which would be July 2010. Does this make sense? Many thanks

Lokolo

It is only when interest is PAID...

So the tax year interest is paid, is the year it counts.

So if this tax year you are paying tax and next year you aren't, you want to try and delay the payment. And vice versa.

juicyjude

Nice on Lokolo thanks very much, you have helped me make a decision today. Cheers:beer::beer::beer::T

juicyjude

I think I will have to register for net tax again before the end of the tax year so if I take out a 12 month maturity interest bond that will help me. Hopefully if I get my sums right I will keep my gross interest as I have another large bond finishing at Christmas and I know I wont get that sort of interest again for a while. Once again, many thanks

Nightingale_2

Can anyone advise on the best 1 year fixed term bond, please?
I was going to get one with the Anglo-Irish bank but their bond has just dropped from 4.05% to 3.70%.
Please help.

juicyjude

Just looked at three for you cheltenham & gloucester, Skipton, and Yorkshire Bank and they are all offering 3.50% I am afraid. The Skipton one is only for 7 months though. Sorry I cant do any better than that Nightingale

D1zzy

You could go for the Newcastle BS- 5 year bond @ 5%. Because you can withdraw money without penalty as long as you give 90 days notice - you can just run it for a year if you want.

I've done one and I doubt my money will be there for 5 years.

juicyjude

I was going to do this but I was put off by an e mail from them stating they wanted a copy of a untility bill (they all come to my husband) or failing that a copy of my bank statement. This was before I filled the application form in, it states i d will be verified electronically but if this proves difficult they still want further docs as I stated above. I just dont like the idea of sending my bank statement through the post so this has put me off a bit.Anyone else any thoughts on this

juicyjude

And has anyone had a problem with electronic verification. The seem to need belt and braces

Lokolo

juicyjude wrote: »

And has anyone had a problem with electronic verification. The seem to need belt and braces

Depends on the bank I have found. Halifax all done very quickly and instantly. Egg asked for verification.

D1zzy

I applied on-line and there was no mention of verification apart from an option to provide your pasport number and expiry.

I have sent bank statements when needed, without problem (they come from the bank via post anyway )