Made 2.5k in 15 minutes

Daichip

I went to Barlays yesterday to see to my finances.

My sons account, in my wifes name had been changed by BArclays from a 5% account to .1% because he had reached 18. (Without my knowledge)
I opened a 5 years fixed bond account for him @ 5.25%. Which would equate to 1k over that period.

I then looked at my offset account. I have 3k left on my mortgage and have 10k in the offset account. So I took 6k and also set up another 5 year bond @ 5.25% (1500) I also found out that I have not reclimed the tax from my sons account for the past 3 years as my wife and I are foster carers and dont pay tax. Therefore I complete a R85 for my sons account and for both the Bond accounts.

This coming week I will be opening a 5% account with Halifax for both of us over 12 month period at 500 pound each per month. Again filling in a R85 form.

Can people tell me if there is a limit how much tax on interest I am allowed.

Also as we are non tax payers and we have 110k on our offset mortgage we can spend at 1.45% could we not draw that out and use it to invest?

Daichip

Arthurian

As far as I know, interest on savings counts towards your personal allowance before tax becomes due.

http://www.hmrc.gov.uk/calcs/r85/ for a calculator to work out your tax on savings.

http://www.hmrc.gov.uk/incometax/personal-allow.htm for your personal allowance.

From the above, I'd suggest your personal allowance may be £6475 per annum, which when divided by 12 = £539.58 per month.

Froggitt

Surely this thread should be titled "Made £2.5K in five years".

LanaElizabeth

Froggitt wrote: »

Surely this thread should be titled "Made £2.5K in five years".

Indeed, that's what I wanted to point out too.

shawn_gg

thank you for the useful information, arthurian!

Greenqueen_2

Your son reached 18 without your knowledge!!!!!:rotfl:

Seriously thats an amazing story that just shows we should all be regularly checking our accounts.