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Anyone have Punjab National Premium Deposit Account?
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arcadia00
Posts: 82 Forumite
I mean the 5yr stepped rate premium deposit scheme.
They are saying they don't take tax each year but will do so at maturity on the final amount.
That is different to how a UK 5yr deposit/bond generally works.
I was surprised as it is not a good way of paying for me.
Is this your understanding too?
They are saying they don't take tax each year but will do so at maturity on the final amount.
That is different to how a UK 5yr deposit/bond generally works.
I was surprised as it is not a good way of paying for me.
Is this your understanding too?
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Some UK banks work the same way so its perfectly possible. When I was looking at Fixed Term savings a few years ago I didnt go with Yorkshire Bank for this very reason.0
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Are you saying they are paying interest gross each year and intend to deduct the tax at the end of the 5 years?0
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I mean the 5yr stepped rate premium deposit scheme.
They are saying they don't take tax each year but will do so at maturity on the final amount.
That is different to how a UK 5yr deposit/bond generally works.
I was surprised as it is not a good way of paying for me.
Is this your understanding too?
I have one and yes.
If it is a real issue the funds can be withdrawn, with all interest to the latest step, at the annual anniversary.
Believe it can also be withdrawn mid year but with loss of interest from the last anniversary."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
What happens if you push this button?0
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Are you saying they are paying interest gross each year and intend to deduct the tax at the end of the 5 years?
Yes, this is what they are going to do. I'd prefer it was paid at the end of each year, but my fault I guess. At least the rates are good by current standards.
Actually, correction. They are paying nothing at the end of each year (even though I have 5 individual stepped rates for each year). They are paying the whole thing out at then end with 20% tax taken off.
I'ts because they are paying out nothing that I have nothing to declare. My balance is just as it was on opening even though over a year has passed. I'm not sure I understand yet. Rates are yr1 3% yr2 4.2% yr3 4.7% yr4 5.3% yr5 5.8%.0 -
Yes, this is what they are going to do. I'd prefer it was paid at the end of each year, but my fault I guess. At least the rates are good by current standards.
Actually, correction. They are paying nothing at the end of each year (even though I have 5 individual stepped rates for each year). They are paying the whole thing out at then end with 20% tax taken off.
I'ts because they are paying out nothing that I have nothing to declare. My balance is just as it was on opening even though over a year has passed. I'm not sure I understand yet. Rates are yr1 3% yr2 4.2% yr3 4.7% yr4 5.3% yr5 5.8%.
As per my earlier post, the version I have allows full withdrawal with interest to date, to the most recent step, at each anniversary.
It was clearly communicated one the web, verbally on the phone and face 2 face, at account opening, in my case. It was even suggested I split the investment in two in order that I could "withdraw" part of the total if I wished to."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
kingrulzuk wrote: »
Isn't that the rupee rate?
Their sterling deposits are lower.
5 year averages out at roughly 4.6%."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
grizzly1911 wrote: »As per my earlier post, the version I have allows full withdrawal with interest to date, to the most recent step, at each anniversary.
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I'm happy with the deposit for full term. Just not happy with way tax is being dealt with. My bad for assuming it would be the same as all my previous multi year term deposits.0 -
I'm happy with the deposit for full term. Just not happy with way tax is being dealt with. My bad for assuming it would be the same as all my previous multi year term deposits.
I also have PDS, opened at the same time, it appears.
And, yes, on one of my account summary pages, it states the maturity value before tax - which is correct compounded interest at the advertised rates, but:
Their terms communicated to me stated The applicable interest will be added to the deposit on yearly basis till maturity - verbatim.
No where in the the communique did it say interest will be rolled up & paid at maturity. I'm having the argument with them now.
They say nobody else has complained!
It's a big deal to me: Assuming Tax rates/bands don't change in the interim, I'll have to pay 40% tax on ALL of the interest in 2017, but SR if added annually until then.0 -
Just looked at my account papers. The details I printed off state: "Interest calculation will be on an annual basis and would be payable at the end of term along with the principal amount of deposit, after deduction of application of Basic Rate Tax."
I would have preferred to be taxed annually too but looks like it will be done at maturity.0
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