New Fixed Term Deposit Accounts from Yorkshire Bank

Ifts

TCA wrote: »

In such cases, is the single payment of interest at maturity the same as the total interest added back to the account annually over the 5 years? Just that it all appears in the final tax year?

If the AER 'Annual Equivalent Rate' is the same then yes.

This link gives an explanation of AER: http://www.moneysavingexpert.com/banking/interest-rates

Ifts

TCA wrote: »

According to the Moneyfacts website:

"Linked Product (Non-Funded): Must have or open a Yorkshire Bank current or savings account"

That puts me off for starters.

No need to have a linked product if you choose to have interest added to your term deposit account.

Linked product only applies if you choose not to have the interest added to the term deposit account and instead have interest paid out to another account, in which case they will pay it directly to your Yorkshire Bank account.

ScarletBea

I've opened one of these and didn't have any other account with them. No problems.

alanq

I just had a look at the website. What a strange slogan for a bank "always thinking". You give them an instruction and they think about it for ever? It hardly rates with the aspirations of being a "helpful bank" or "on your side" etc.

Adjer

I think that Yorkshire Bank are using "sharp practice" to make the interest paid look better than it really is. They quote 5.16% ( a flat rate ) as well as the true rate of 4.7%. This a distraction and misleading to many savers. When I asked about this I got a lot of "gobble di gook" from the advisor to cover this up and to confuse me. However I still went ahead, as 4.7% Gross AER is still a leading rate.We will see if it still is in a few years time.

opinions4u

Adjer wrote: »

I think that Yorkshire Bank are using "sharp practice" to make the interest paid look better than it really is. They quote 5.16% ( a flat rate ) as well as the true rate of 4.7%. This a distraction and misleading to many savers. When I asked about this I got a lot of "gobble di gook" from the advisor to cover this up and to confuse me.

I hate the way it's displayed.

But it does comply with the guidelines they have to work within.

http://www.bba.org.uk/download/3498 (page 12)

Ifts

Close Brothers Savings are offering a slightly better rate on their 2 year fixed term account

Premium Gold 2 year fixed term fixed rate account @ 4.25% AER/Gross (minimum balance 10K)

https://forums.moneysavingexpert.com/discussion/3609609

RobStaffs

Just tried to set up a second term saver with Yorkshire Bank but the online service only allows one account per email address.They are looking into this..Is it possible for me to set up a second term account in my wifes names but on my email address or would this be deemed an issue in terms of tax decleration.I am a higher tax payer.

RetiredInThailand

Just make a new Gmail address. Takes seconds, and you can redirect all incoming mail to your own address.

kostigovs

noh wrote: »

Tax is due when the interest is credited to the account. It may suit some to have all the interest credited at the end of the term depending on their other income.

When i asked the Clydesdale Bank they said that the gross interest is added each year and then the tax is taken off at maturity which gives a slightly better return if interest all paid at maturity