santander 3% plus 2.5%?

jamoo

Hi guys,
does this 3% santander savings account with a 2.5% 1st year bonus mean i get 5.5% on my savings first year? Also, if i were to put 85k in- would i be taxed on my savings or interest? Thanks for your help, i know little about savings, etc.

James.

Lokolo

The 2.5% bonus is included in the 3%, so you will get 3% (0.5% plus 2.5% bonu).

And yes you will be taxed on the interest, if you are a non tax payer then you can fill in an R85 form and the interest will not be taxed.

Lokolo_2

I think if there was 5.5% interest and instant access available on savings then everyone would jump at it! :eek:

cepheus

NS&I may be offering Index linked certificates soon. You might be able to tuck away 30k with a decent interest tate, tax free, if inflation stays high.