Monthly income lower than expected.

zogg

Hi,

I have 40k with Scottish Widows and get a monthly income.

I am registered as non tax payer.

AER on account is 3.01%

Every month I get approx £77-82 income (depends on days in the month)

I feel I should be getting more.

Can anyone advise please. Thank you.

dunstonh

Is it a Scottish Widows investment product or a Scottish Widows deposit account?

3.01% gross would suggest around £100pm. Take off tax of 20% and you are in your ball park figure of £77-82.

If its a deposit account then you need to register as a non tax payer to get interest paid gross. If its a in investment product, the net/gross issue will depend on the investments used and if they are within an ISA or not.

zogg

dunstonh wrote: »

Is it a Scottish Widows investment product or a Scottish Widows deposit account?

3.01% gross would suggest around £100pm. Take off tax of 20% and you are in your ball park figure of £77-82.

If its a deposit account then you need to register as a non tax payer to get interest paid gross. If its a in investment product, the net/gross issue will depend on the investments used and if they are within an ISA or not.

It is a plain straight forward internet saver account. I make no addition payments to it. I am sure I registered as non tax payer when i opened it, but will contact SW on Monday to be sure.

I appreciate your help.

Thrugelmir

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Thrugelmir

The AER rate, is the rate you would earn if the interest was added back to the original sum and compounded with further interest.

As you withdraw the income on a monthly basis then the AER will actually be lower.

juicyjude

Yes the interest rate will be a little lower than the AER. Have you completed an R85 form to register for gross interest.You should only do this if you are pretty certain you will not earn more than £6.475 per annum in taxable income. Hope you get this sorted as I agree the interest seems a little low for that amount of money.