Nationwide Flexclusive ISA @ 2.25% AER

badger09

Archi_Bald wrote: »

£1,000 for the FlexDirect, not £500, Ms badger09 :cool:

Yes sorry - I meant to post £500 x 2 as that's what we'd been discussing

Now edited so as not to confuse anyone else

SpideressUK

AndyPK wrote: »

If you hold £3k most of the time in your current account you maybe interested in a Santander 123 account. This pays 2.37% after tax and only requires £500 paying in a month. You would need to move your debits over to make it worth while so the cash back pays the fee.

Thanks but I am lucky if there is £400 left in the current account for the month

SpideressUK

Archi_Bald wrote: »

Banks automatically withhold 20% of the gross interest (unless you are eligible for gross interest - - are you? http://search2.hmrc.gov.uk/kb5/hmrc/forms/view.page?record=nCRoVNw8-lk&formId=835)

So you only get paid out 80% of 5% = 4%.

I think I am eligible for gross interest since I do not earn anything a year (but will get WTC due to hubby's pay being low and CTC and Child Benefit once we adopt our son at the end of the year) so pay no tax (I don't think I would pay tax on the benefits because they do not reach anywhere near my personal tax allowance and I am not sure if they are counted as "mine" alone or as "joint" on couple basis - I am not sure if people pay tax on benefits anyway even if they do get enough to reach their personal tax allowance) so I suppose it is possible for us to open that account that needs the £1K paid in each month in my name only and put the £150 a month we are "saving" for the annual bills like car tax etc into that and get a full 5% interest for the first 12 months :T

Archi_Bald

Definitely sounds as if you would be eligible for gross interest since you have, like everyone else, a £9,440 personal allowance this year and it doesn't sound like you use any of it right now

It would therefore make sense to have all your savings in your name, and for you to fill in an R85 and give it to Nationwide (assuming you are going with the FlexDirect).

SpideressUK

Archi_Bald wrote: »

Definitely sounds as if you would be eligible for gross interest. It would therefore make sense to have all your savings in your name, and for you to fill in an R85 and give it to Nationwide (assuming you are going with the FlexDirect).

Yes, I will speak to hubby and that is likely what we will do. I am always a bit afraid of money he cannot get his hands on straight away (in case I died unexpectedly) but the ISA has to be in one person's name anyway so it would be the same kinda thing but less interest in the ISA