NS&I Index-Linked Savings: Q&A

redpin_2

is it possible to continuouslly add money to the savings account until you reached that limit i.e. i want to put in around £1500 now to open the account then add a further £6500 when my regular saver matures in mid may

also it says; Tax status Tax-free; what's that mean assuming it isnt an ISA account

Jonbvn

redpin wrote: »

is it possible to continuouslly add money to the savings account until you reached that limit i.e. i want to put in around £1500 now to open the account then add a further £6500 when my regular saver matures in mid may

also it says; Tax status Tax-free; what's that mean assuming it isnt an ISA account

You can add money in portions up to the the £15k limit. You will get a certificate for each separate contribution. The maturity date of each certificate will be either 3 or 5 years from the date you make each purchase.

Tax-free means exactly what it says. You pay no tax on the interest nil, nada, nothing. It has no relationship with an ISA.

Aegis

redpin wrote: »

is it possible to continuouslly add money to the savings account until you reached that limit i.e. i want to put in around £1500 now to open the account then add a further £6500 when my regular saver matures in mid may

also it says; Tax status Tax-free; what's that mean assuming it isnt an ISA account

It means that the interest isn't subject to income tax (or capital gains tax for that matter).

RayWolfe

... and it is not taken into account for Age Allowance and you don't have to mention it on your tax return.

JamesU

RayWolfe wrote: »

... and it is not taken into account for Age Allowance and you don't have to mention it on your tax return.

Do you happen to know if these are excluded from means testing for care fee costs?

JamesU

lisyloo

I don't know the answer but I'll be totally amazed if that loophole was available.
You are definitely not allowed to "deliberately deprive" yourslef of money in order to obtain state benefits.
So even if it was the case, you couldn't deliberately make use of it.

Jonbvn

JamesU wrote: »

Do you happen to know if these are excluded from means testing for care fee costs?

I do not think so. However, like ISA's they are excluded from the income calculations for tax credits.

JamesU

Jonbvn wrote: »

I do not think so. However, like ISA's they are excluded from the income calculations for tax credits.

So all cash and stocks and shares ISAs fall outside means testing when calculating pensions tax credits? Really?

And do you also happen to know if with profits bonds are excluded from means testing towards pension tax credits?

JamesU

JamesU

lisyloo wrote: »

I don't know the answer but I'll be totally amazed if that loophole was available.

Me too, which is why I asked if anybody knew the answer.

[QUOTEYou are definitely not allowed to "deliberately deprive" yourslef of money in order to obtain state benefits.
So even if it was the case, you couldn't deliberately make use of it.[/QUOTE]

For sure.

JamesU

lisyloo

What are "pension tax credits" please?

I know what "pension credit" is, but I don't think that is what is meant here.
Need to make sure people are not talking at cross purposes, which I think they might be.