5% Savings Loophole

patientperson

ceredigion wrote: »

You put
2.5k in nationwide @5%
2k in tsb @5%
5k in Lloyds 5%
15k in bos 3%
20k in Santander @3%
that is 44.5k in total

Lloyds (Club Lloyds) is 4% .. or have I missed a 5% offering?

csgohan4

I thought interest was paid after tax? I know they do that with my Santander account. If you earn below the 20% barrier, fill in a R85 form and get the interest tax free.


From next year Apr 2016, you can earn 1000 in savings interest tax free regardless of tax status.


http://www.moneysavingexpert.com/savings/tax-free-savings


Also what about the HSBC premier account that earns you 6% gross interest for 250 pounds every month giving 97 pounds of interest every year gross.

joe134

csgohan4 wrote: »

I thought interest was paid after tax? I know they do that with my Santander account. If you earn below the 20% barrier, fill in a R85 form and get the interest tax free.


From next year Apr 2016, you can earn 1000 in savings interest tax free regardless of tax status.


http://www.moneysavingexpert.com/savings/tax-free-savings


Also what about the HSBC premier account that earns you 6% gross interest for 250 pounds every month giving 97 pounds of interest every year gross.

You don't need the Premier A/c to get the 6% , the Advance A/c will do.

colsten

csgohan4 wrote: »

From next year Apr 2016, you can earn 1000 in savings interest tax free regardless of tax status.

Incorrect. If you are a higher rate tax payer, it's only £500, and it's nothing for additional rate tax payers.

DireEmblem

HSBC seem to have a good ISA deal -for the first 12 months, if you deposit £25 a month, they will add a £10. Forgetting the interest on the ISA, you will return 40%. Combine this with the regular saver of 6% above, both combined are a pretty good deal imo!

jambobski123

Hi all, looking for a little help,

my accounts with each balance are as follows:

TSB Plus - 2k
Nationwide flexdirect - 2.5k
BOS Vantage 1 - 5k
BOS Vantage 2 - 5k

what is the best way to transfer the money around these accounts?

thanks.

joe134

DireEmblem wrote: »

HSBC seem to have a good ISA deal -for the first 12 months, if you deposit £25 a month, they will add a £10. Forgetting the interest on the ISA, you will return 40%. Combine this with the regular saver of 6% above, both combined are a pretty good deal imo!

And they are dropping the rate January to 1.2 from 1.4.
Been around a whileThe thing is, whether to add to it, or loose the remainder of your allowance, at that rate?
I,ve never missed a year since Isas came out, and Oh, so, if I don,t top it up, then I lose the rest of my allowance.
Don,t know if I,m going to bother with that rate, even if. It is only foe a few months, before I switch it to another?

jimjames

joe134 wrote: »

And they are dropping the rate January to 1.2 from 1.4.
Been around a whileThe thing is, whether to add to it, or loose the remainder of your allowance, at that rate?
I,ve never missed a year since Isas came out, and Oh, so, if I don,t top it up, then I lose the rest of my allowance.
Don,t know if I,m going to bother with that rate, even if. It is only foe a few months, before I switch it to another?

Why bother when you can get better rates elsewhere? I put £300 in and then withdrew it. You still get the £10. All my ISA allowance is in S&S ISAs.

masonic

joe134 wrote: »

I,ve never missed a year since Isas came out, and Oh, so, if I don,t top it up, then I lose the rest of my allowance.
Don,t know if I,m going to bother with that rate, even if. It is only foe a few months, before I switch it to another?

As jimjames points out, you can put the rest in a S&S ISA. If you really must save your money in cash ISAs then you can pay into a S&S ISA just before the end of the tax year without buying any investments, then at the start of the next tax year transfer from the S&S ISA to the cash ISA of your choice. Net result allowance preserved, all in cash ISAs, and no more than the required £300 in the HSBC one.

joe134

masonic wrote: »

As jimjames points out, you can put the rest in a S&S ISA. If you really must save your money in cash ISAs then you can pay into a S&S ISA just before the end of the tax year without buying any investments, then at the start of the next tax year transfer from the S&S ISA to the cash ISA of your choice. Net result allowance preserved, all in cash ISAs, and no more than the required £300 in the HSBC one.

What I planned on was just topping it up just before the 6th, and transferring it to another, better paying one, straight after
.I like Isas, even though they are low at the moment, there's always that chance they will rise, and having quite a bit in umpteen A/cs, want the tax benefits Isas, provide.
They are also a good hedge for £100k,s against IHT;
That's what's accrued since they first started, x 2 for OH.
Even with the new tax breaks, it won't take many 0.25% increases to have to restart paying tax on interest
.And the only way is up, maybe not for a while.
I 've come out of S/s's, now, I cashed them all in at 7000.
6400 seems the benchmark, and I'm not prepared to risk my Capital, at 70 , for a bit of extra, divi.
Calculated risk after years in the market.I've had the long term, and don't like what I see ahead for the markets.
OK if you are younger.
Hsbc was/is the only cash Isai have, I always use fixed term, 2>3 years.
It was only the £10 per month that bribed me, and I use Hsbc as my main hub bank, anyway.
Plus umpteen others:-)
I never took the S/s Isas route, stuck to cash Isas, peps, tessas etc putting maximum in every year.and investing ordinary S/s portfolio,outside Isa wrapper, cashing in not long ago.More choice outside the Isa wrapper , at the time, and more freedom to move.
.Stick to cash now.Apart from a bit of Day trading;
I've just left the £300 in both A/c's , wifes as well,less to top up with.:beer: .