Investment/Savings advise for £thousands needed unemployed status

bery_451

Also will I get the full interest amount or will the taxman take some of the interest?


If taxman takes some of the interest then how do I stop that?


Shall I go for a current account as advised above or shall I go for a savings account or ISA? Confused which one to choose. Which one suits a unemployed on benefits the most?

jimjames

bery_451 wrote: »

Also will I get the full interest amount or will the taxman take some of the interest?


If taxman takes some of the interest then how do I stop that?


Shall I go for a current account as advised above or shall I go for a savings account or ISA? Confused which one to choose. Which one suits a unemployed on benefits the most?

Only you can decide that.


We can provide info but it's up to you if you want the best return or the least hassle.


If you're a taxpayer then you pay tax. If you're a non taxpayer then you can get interest tax free.

atush

If a non taxpayer, you fill out a form and give it to your bank and you will get your interest w/o tax.

We have said the highest rates are with some current accts. If you want less interest, feel free to try a savings account or isa instead.

bery_451

Yes which one has the best return with the least hassle for someone like me?
















What is this form at the bank called?
Can I fill out this form while applying for the account?

colsten

Why not read things like this - it will save you waiting for answers for several hours or days.

bery_451

Im looking at the Lloyds offer and is says 5% interest up to £2000.


Lets say I put £1600 into that account and in the next month I deposited £500 because Lloyds says I have to do that to get the interest. That means the total will come up to £2100 so once that happens I wont get any interest no more because it is over £2000?

jimjames

bery_451 wrote: »

Im looking at the Lloyds offer and is says 5% interest up to £2000.


Lets say I put £1600 into that account and in the next month I deposited £500 because Lloyds says I have to do that to get the interest. That means the total will come up to £2100 so once that happens I wont get any interest no more because it is over £2000?

Yes that's right.

Which Lloyd's account is that?

bery_451

Its the one featured in Martin's bank account guide.

Eco_Miser

bery_451 wrote: »

Im looking at the Lloyds offer and is says 5% interest up to £2000.

Either you've found a new offer, or you're confusing Lloyds with TSB - they're no longer Lloyds TSB, and TSB are not part of Lloyds group.
It's TSB who offer 5% on £2000,
Lloyds offer 4% on £4000-£5000.

bery_451 wrote: »

Lets say I put £1600 into that account and in the next month I deposited £500 because Lloyds says I have to do that to get the interest. That means the total will come up to £2100 so once that happens I wont get any interest no more because it is over £2000?

No, that condition is badly written. In fact you earn 5% interest on the lower of £2000 and your balance, so if you had more than £2000 in the account all year, and had registered for interest without deduction of tax, you'd get £100 interest. (Except you wouldn't get quite that much, because the AER depends on compounding the interest monthly, and that doesn't happen if you've have £2000 or more in the account.)

Further, while TSB require you to pay £500 into the account each month, they don't require you to leave it there, so you could spend £100 from the account - it is a current account after all - or move the surplus to another account.

bery_451

Sorry yes I meant the TSB offer. Ok so you saying I wont get interest for that month as the balance is over £2000 in that month?


So I have to keep it under £2000 throughout the year to get the maximum annual interest?


Isnt this gonna be a hard task to do when there is £500 going in there every month?