Annual/monthly Interest For Non Tax Payer

gingerbird67_2

I have finally persuaded lovely but luddite OH to trust online savings. I am non taxpayer and he has agreed to put 50k in Tesco for 6 months and 35k in Sainsbury both in my name 1. Is this a good temporary plan? 2.However I'm still not au fait with the monthly/annual interest benefits. The Tesco site says annual is better, OH says must be wrong! Sainsbury only annual anyway. (Will move these accounts as and when and learn more over the next few months hopefully) 3. Also we still have another 15k which OH wants to put into fixed rate NS&I. Is this also a good idea and if so 3 or 5 years?

debbie42

gingerbird67 wrote: »

I have finally persuaded lovely but luddite OH to trust online savings. I am non taxpayer and he has agreed to put 50k in Tesco for 6 months and 35k in Sainsbury both in my name 1. Is this a good temporary plan? 2.However I'm still not au fait with the monthly/annual interest benefits. The Tesco site says annual is better, OH says must be wrong! Sainsbury only annual anyway. (Will move these accounts as and when and learn more over the next few months hopefully) 3. Also we still have another 15k which OH wants to put into fixed rate NS&I. Is this also a good idea and if so 3 or 5 years?

They are two higher paying savings accounts, so that seems a good plan. Don't forget to fill out an R85 form (one for each account) to get the interest paid gross.

Keep an eye on the interest: with current tax allowances and interest rates you'll be ok with the figures quoted, but if you go above our allowance, you'll be liable for tax.

As for annual/monthly interest: this doesn't really matter unless you want to draw the income on the interest. The main thing to look for when comparing is the AER rate, as you can compare overall rates between different accounts then.