Current account query

mrssjs

Hi, I copied and saved the following info a while ago off these boards:-

TSB x 3 for £6K @ 5% AER
N/W FD x 3 for £7.5K @ 5% AER
Club Lloyds x 3 for £15K @ 4% AER
BoS x 6 for £30K @ 3% AER
Tesco x 4 for £12K @ 3% AER
Santander x 3 for £60K @ 3% AER

That should equate to £130.5K

Is this still the case please? - I'm guessing this was including joint accounts. Thus far I haven't opened high interest joint accounts as my OH is a higher tax payer - is it definite that savings tax is to be reduced from April?

TIA

Archi_Bald

Offers are still roughly as per your list. Santander charges will go up from £24 to £60 in Jan. Allowance on interest will be £1K for BR and £500 for HR tax payers from 6 April 2016 onwards.

I don't understand your logic for not opening accounts because the account holder is an HR tax payer. They have to pay tax on whatever interest they get, and interest in current accounts is higher than in any savings account.

mrssjs

Archi_Bald wrote: »

Offers are still roughly as per your list. Santander charges will go up from £24 to £60 in Jan. Allowance on interest will be £1K for BR and £500 for HR tax payers from 6 April 2016 onwards.

I don't understand your logic for not opening accounts because the account holder is an HR tax payer. They have to pay tax on whatever interest they get, and interest in current accounts is higher than in any savings account.

Because we haven't needed to yet, we're not yet that rich :rotfl:but as I am a basic rate taxpayer and the one who sorts all the finances, it's been better in my hands as such.

Thanks for your response :-)

jimjames

mrssjs wrote: »

Because we haven't needed to yet, we're not yet that rich :rotfl:but as I am a basic rate taxpayer and the one who sorts all the finances, it's been better in my hands as such.

Thanks for your response :-)

You still have the option to have all savings (in current accounts) held in your name so you don't pay any additional tax. Once you reach the limit for those in your name which sounds like it might be some way off, then you could look at joint ones and their name. They should be aware that the money in your account is legally seen as yours though.

mrssjs

jimjames wrote: »

You still have the option to have all savings (in current accounts) held in your name so you don't pay any additional tax. Once you reach the limit for those in your name which sounds like it might be some way off, then you could look at joint ones and their name. They should be aware that the money in your account is legally seen as yours though.

Yes we're aware thank you

YorkshireBoy

mrssjs wrote: »

Hi, I copied and saved the following info a while ago off these boards:-

TSB x 3 for £6K @ 5% AER
N/W FD x 3 for £7.5K @ 5% AER
Club Lloyds x 3 for £15K @ 4% AER
BoS x 6 for £30K @ 3% AER
Tesco x 4 for £12K @ 3% AER
Santander x 3 for £60K @ 3% AER

You're very welcome. Glad you found it useful.

Is this still the case please?

Yes, as 5-10 minutes perusing their current website information would confirm. I originally posted it back in Feb this year so you ought to check it anyway.

I'm guessing this was including joint accounts.

It was, and still is. The figure for sole accounts using the same providers is £50.5K (ie at 3% AER or more).

Kernel_Sanders

YorkshireBoy wrote: »

The figure for sole accounts using the same providers is £50.5K (ie at 3% AER or more).

I make it £45,500 presuming that 'BoS x 6 for £30K' means 2 x £5000 each plus 2 x £5000 joint.

eskbanker

Kernel_Sanders wrote: »

I make it £45,500 presuming that 'BoS x 6 for £30K' means 2 x £5000 each plus 2 x £5000 joint.

No, it means 3 x £5000 each (in sole accounts), hence £50.5K.