Pensioner Bonds

colsten

towny44 wrote: »

and of course theoretically you can still reclaim the tax back from HMR&C.

and of course, you can practically, too. So long as you are entitled to tax free income. Remember also that there will be a significant increase in tax free savings income from next tax year (if your total income is below £15K).

kidmugsy

colsten wrote: »

For goodness sake, what is the problem with our pensioners?

Pensioners are special snowflakes.

towny44

colsten wrote: »

it's not a bit stupid. Their systems don't support R85s, and there is no case to be made in the present climate for non-essential changes to IT systems as such changes cost a lot of money. For goodness sake, what is the problem with our pensioners? They would be happy filling in an R85 but seem to be unable to fill in an R40. If you have enough money to lock some of it away for 1 and/or 3 years, surely you can cope with getting some extra interest a bit later?


Why would you pass on them if you are eligible?

A normal savings account pays you 1.5% at best. The pensioner bonds are rumoured to pay at least 2.8%, of which 2.24% would be paid to everyone, so 0.74% more than a normal savings account.
The remaining 0.56% can be claimed with an R40.

There is probably every case for all Govt. IT systems to be outsourced to an organisation that knows what its doing and can deliver a system that works and comes in under budget.
Maybe they should have a word with Amazon, their system provides the slickest one I have come across, and as yet I have never had any problems.

colsten

towny44 wrote: »

There is probably every case for all Govt. IT systems to be outsourced to an organisation that knows what its doing and can deliver a system that works and comes in under budget.
Maybe they should have a word with Amazon, their system provides the slickest one I have come across, and as yet I have never had any problems.

Not sure how you make the giant leap from NS&I not supporting R85s to every Government IT system probably needing to be outsourced. Or how such outsourcing would magically produce R85 support in NS&I. Or why Amazon would be best positioned to run UK Government IT systems just because they run a slick online retail operation (for which they allegedly don't pay much tax, but that's a separate issue).

But with a little research you will find that most of the government IT systems are indeed already outsourced, and certainly the NS&I system is.

Can we just put this "R40 issue" to rest please, and can those few pensioners who will be entitled to claim extra interest payment just fill in their R40s instead of the R85s they'd be happy to fill in. It's not as if pensioners were short of time, is it.

Onawingandaprayer

colsten wrote: »

Why would you pass on them if you are eligible?

A normal savings account pays you 1.5% at best. The pensioner bonds are rumoured to pay at least 2.8%, of which 2.24% would be paid to everyone, so 0.74% more than a normal savings account.
The remaining 0.56% can be claimed with an R40.

Because my wife and I can each get 3% at Santander. And the interest is paid monthly.

colsten

Onawingandaprayer wrote: »

Because my wife and I can each get 3% at Santander. And the interest is paid monthly.

I was only using the rumoured 1 year rate. As I am sure you know, there is also a rumoured 4% rate, for which the same sort of principle applies.

Anyway, you started out in post 8 of this thread saying the pensioner bonds were ruled out for you because there was no R85. That's what I commented on. Now you are saying it's because you can get 3% (ish?) at Santander with monthly interest. Seems you agree that the absence of R85 support isn't an issue for you after all?

PS: why are you not turning down the pensioner bonds on the grounds that you can get 4% and 5% with monthly interest for some of your money in other banks?

bowlhead99

Onawingandaprayer wrote: »

towny44 wrote: »

Why on earth are the new pensioner bonds not available with an R85 exemption surely, when most other savings providers products can be paid gross of tax, it seems a bit stupid for NS&I not to provide this for the new bonds.

It's certainly ruled them out for me.

Really ? Having to claim the tax back rules it out? Seems strange?

Onawingandaprayer wrote:

Because my wife and I can each get 3% at Santander. And the interest is paid monthly.

Ah, a completely different reason then.

kidmugsy

Aw, come on, chaps. Special snowflakes should not be held to the rules of logic.

Onawingandaprayer

kidmugsy wrote: »

Aw, come on, chaps. Special snowflakes should not be held to the rules of logic.

What is this special snowflakes comment? You got a problem with the older generation? Suspect you'll get there yourself one day.

Onawingandaprayer

bowlhead99 wrote: »

Really ? Having to claim the tax back rules it out? Seems strange?

Ah, a completely different reason then.

Please allow to make up my own mind and contribute to this forum in any way I wish. For me, 3% paid monthly tax-free trumps possibly 2.8% or a little more, on a rumoured limit of £10k per person, with the hassle of claiming the tax on the interest back. Hope my decision is ok with you.