New interest allowance question

FreddieFrugal

I've just been paid my interest for the year with my nationwide regular savers (currently at 1.6% net)

So with this new interest allowance from April, assuming I pay in the max per month from now:

Will my next interest payment next November be calculated based on 2% for the entire year?

Or will it be 1.6% for all the months up to April, and 2% for the months thereafter?

Makes a difference as to where i put the money in.

thanks

masonic

It doesn't matter when money is deposited, or over what period interest is earned. If it is paid in the next tax year then it can be included in the personal savings allowance.

colsten

FreddieFrugal wrote: »

Will my next interest payment next November be calculated based on 2% for the entire year?

Or will it be 1.6% for all the months up to April, and 2% for the months thereafter?

Until 5th April 2016 incl., all interest is subject to 20% tax deduction at source.

masonic

colsten wrote: »

Until 5th April 2016 incl., all interest is subject to 20% tax deduction at source.

I think that is slightly misleading. No tax will be deducted at source from any part of the OP's next interest payment from this regular savings account (Edit: assuming, of course, it is held to term).