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The "Save 12k in 2016" Thread!

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  • Its easy to save 12k. Just turn everything off and eat bread & water.
  • slowlyfading
    slowlyfading Posts: 13,429 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Its easy to save 12k. Just turn everything off and eat bread & water.
    Or, be sensible with your money and live below your means? Why don't you try the challenge - you might surprise yourself and then you might not be quite so sarcastic about it.
    Be who you are and say what you feel because those who mind don't matter and those who matter don't mind.
    Personal Finance Blogger + YouTuber / In pursuit of FIRE
  • slowlyfading
    slowlyfading Posts: 13,429 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Spreadsheet and front page updated :)
    Be who you are and say what you feel because those who mind don't matter and those who matter don't mind.
    Personal Finance Blogger + YouTuber / In pursuit of FIRE
  • Lolly88
    Lolly88 Posts: 322 Forumite
    Tenth Anniversary Combo Breaker
    bobobski wrote: »
    It'll be more interest than that due to the tax changes in April, although I haven't done the sums yet :) if it were a full year at the full 6% it'd be around £115 interest but it's 3 months at 4.8% (pa) plus 9 months at 6% (pa). And since it's a regular saver it's the earlier (smaller sums) months that are at lower interest :beer:

    No, you would get the full amount on maturity. Tax is deducted on the final sum not based on accruing interest. So if an account matures in the new tax year then no tax gets taken off whatsoever.
    Homeowner
    :j
  • Eco_Miser
    Eco_Miser Posts: 4,856 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    Its easy to save 12k. Just turn everything off and eat bread & water.
    Even easier, look at a car catalogue, then don't buy anything. That's hundreds of thousands saved. :)

    However controversy's method requires an income over £12k, so not that easy.
    Eco Miser
    Saving money for well over half a century
  • Eco_Miser
    Eco_Miser Posts: 4,856 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    When an account has minimum pay in of £1000, could I deposit £500, withdraw it and deposit it again the next day to qualify?
    You could. Once you have £1000 in the account, you could withdraw it, then pay it back in. If you've two accounts, and internet banking, this is the work of moments.
    Eco Miser
    Saving money for well over half a century
  • george4064
    george4064 Posts: 2,928 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    That way, or whenever you think you've saved what you'll manage within a month, if that makes sense? :)

    Just to check, is it okay for me to update my January savings in Feb?
    "If you aren’t willing to own a stock for ten years, don’t even think about owning it for ten minutes” Warren Buffett

    Save £12k in 2025 - #024 £1,450 / £15,000 (9%)
  • bobobski
    bobobski Posts: 771 Forumite
    Seventh Anniversary 500 Posts Name Dropper Chutzpah Haggler
    edited 11 January 2016 at 8:55PM
    Lolly88 wrote: »
    No, you would get the full amount on maturity. Tax is deducted on the final sum not based on accruing interest. So if an account matures in the new tax year then no tax gets taken off whatsoever.

    Depends on the Ts & Cs of your account but I doubt it. There's a difference between when the interest is earned and when it is paid. That's why I won't get the full [£115-tax] on my First Direct regular saver this year, because I was behind paying into it earlier in the year. Although I will have the full £3,600 on maturity, I will not get the full interest.

    Also why you don't get 6% of £3,600 on the First Direct regular saver - if you did it would be £216 (less tax). Instead, the rule of thumb with one year regular savers is just over half the annual interest (£115 is just over half £216) - the interest is calculated monthly.

    Edit: Having said that, it may be that tax isn't due until the interest is paid. So I may well be wrong! I'm sure someone mathsy will be along to explain...

    Second edit: The Ts & Cs for FD regular saver say: "Interest is calculated daily and paid on the 12 month anniversary after account opening". I just phoned them and he wasn't entirely sure what the answer was...
  • alja
    alja Posts: 838 Forumite
    Part of the Furniture Name Dropper Combo Breaker
    I will be declaring what I've saved this month at the end of the month. Not sure it'll be a great month for saving as I have some big purchases going on this month. But I have started to list a couple of things for sale on fb groups and that schhh... selling app. Yet to have any luck from the latter but have made £10 in the last 24 hours using fb. So that money will help things stretch that little bit further :)
    Also been doing more surveys today to rank up the savings a bit.
  • Eco_Miser
    Eco_Miser Posts: 4,856 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    edited 11 January 2016 at 9:00PM
    bobobski wrote: »
    Depends on the Ts & Cs of your account but I doubt it. There's a difference between when the interest is earned and when it is paid. That's why I won't get the full [£115-tax] on my First Direct regular saver this year, because I was behind paying into it earlier in the year. Although I will have the full £3,600 on maturity, I will not get the full interest.
    That's a different question than when you get taxed. You get taxed when the interest is paid into the account.
    bobobski wrote: »
    Also why you don't get 6% of £3,600 on the First Direct regular saver - if you did it would be £216 (less tax). Instead, the rule of thumb with one year regular savers is just over half the annual interest (£115 is just over half £216) - the interest is calculated monthly.
    The interest is actually calculated per day, on the balance on that day. If you've paid uniformly, the average balance for the year is 6.5 times the monthly payment, so £1950. 6% of £1950 is £117. The £2 difference is because months are not uniform.
    Eco Miser
    Saving money for well over half a century
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