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Does a bank know my tax rate and adjust interest?

mbbetter · 2012-04-16 15:45:40

Hi firstly appolgies for what may appear as complete ignorance: I have not has a taxable savings account for the past 6 years. I have since become a higher rate tax payer. I have just set-up a savings account (First Direct's Regular 8% Gross). Terms state: "Interest will be paid after the deduction of the basic rate of…

Comments

jem16 Posts: 19,870 Forumite

17 April 2012 at 8:04AM

Mikeyorks wrote: »

The 'interest' is £15pa ........ so you've been undercooking your tax to the rate of £3 per year! I doubt HMRC are awaiting your call.

You lost your calculator there Mike

Interest would be £6.25 x 12 so £75pa meaning £15 of tax.

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