Fixed Rate Savings Account

bigfreddiel

alanq wrote: »

The 2010-11 Cash ISA Allowance is £5340. Expect the 2011-12 Allowance to be about 5% more than that but not as much as £6340.

And as Newly retired points out the plan doesn't meet the OP's requirements anyway.

glad everyone is paying attentiion of course its only £5340 -my finger slipped

first_time_buyer_London

pqrdef wrote: »

Check out interest payment dates. For instance, interest paid on March 31 will be taxed according to your tax status in the 2011-12 tax year, but if no interest is paid until the anniversary date, the whole year's interest will be taxed according to your status in the 2012-13 tax year - it doesn't get divided between years pro-rata.

Monthly interest might be preferable.

My interest payment date would be in one years time (annual interest) when the account matures providing I open it this month it would be September 2012.

It is now September 2011 (2011 tax year) and I am not working or paying tax at the moment but I am wondering what the situation would be if I started work next month what would my tax status be?

first_time_buyer_London

So providing I fill out the Skimpton R85 form I will get paid £517.50 interest after 1 year then?

calypso_rhapsody

As i recall the AER is the same for annual or monthly interest - do check the website but that is my recollection. If so, then pqrdef's suggestion to go for monthly may be good advice - and frankly if the difference in AER is small and the change you might become a tax payer in 2012/13 is good then it would still be right

Re steady eddie's comment about debit card limits - mine certainly has a limit over £500 - i've used it for this, for buying NSandI products and to buy a car - all well over that limit. No idea what the limit is ... it's on a Bank of Scotland account.

steady__eddie

My debit card is with Lloyds, I asked them if I could increase the £500 limit and they said no because it (the limit) was in order to minimise loss in the case of fraud, hacking, theft of card etc. I was under the opinion, (obviously incorrect), that the £500 limit was an industry standard.
Fortunately I have 3 Vantage accounts so I can shift £1.5k at a time.

pqrdef

first_time_buyer_London wrote: »

My interest payment date would be in one years time (annual interest) when the account matures providing I open it this month it would be September 2012.

It is now September 2011 (2011 tax year) and I am not working or paying tax at the moment but I am wondering what the situation would be if I started work next month what would my tax status be?

If interest is paid in Sep 2012 and you're earning in 2012-13, the taxman will want his full cut, no tax break at all.

If your income in 2011-12 is under the limit, you can get a tax break, but only on interest paid before 6th April 2012.

alanq

bigfreddiel wrote: »

glad everyone is paying attention of course its only £5340 -my finger slipped

So did mine - a few times it seems.

Originally Posted by alanq
"The 2010-11 Cash ISA Allowance is £5340. Expect the 2011-12 Allowance to be about 5% more..."


should of course have read

"The 2011-12 Cash ISA Allowance is £5340. Expect the 2012-13 Allowance to be about 5% more ..."

first_time_buyer_London

first_time_buyer_London wrote: »

So providing I fill out the Skimpton R85 form I will get paid £517.50 interest after 1 year then?

If I don't tell them my circumstances have changed (and they don't look into it) if they do change and I go back to work paying BR tax???

£517.50 yea?