Monthly saver interest question

stowupland4

I have just been into TSB with an R85 for a current account.
The cashier said, I was still net on my monthly saver opened last October.
As I won't get the interest till next October, and knowing no tax will be deducted after April I didn't think I needed an R85.
The cashier said because it was accruing daily/monthly I needed to inform them. Is she correct?
Thankyou

le_loup

The tax date is the date the interest is credited to your account. I doubt that it is credited monthly even though it's earned daily.

LXdaddy

Unless TSB are going to credit interest to your account this tax year you won't see any interest until the anniversary of opening so should receive the gross amount with no tax deducted.


Even though the interest is "earned" this tax year the key date is when it is paid to you.

B_G_B

stowupland4 wrote: »

I have just been into TSB with an R85 for a current account.
The cashier said, I was still net on my monthly saver opened last October.
As I won't get the interest till next October, and knowing no tax will be deducted after April I didn't think I needed an R85.
The cashier said because it was accruing daily/monthly I needed to inform them. Is she correct?
Thankyou

Had the same conversation a few days ago renewing an M&S monthly saver. I don’t think it’s required. M&S advisor said it is. I’ve sent one anyway to cover all the bases.

Chaykin

Interest on Monthly Savers is only paid on maturity but is calculated daily so you still have to pay tax on interest earned (but not yet paid) before April unless you provide an R85 form.

ceredigion

Chaykin wrote: »

Interest on Monthly Savers is only paid on maturity but is calculated daily so you still have to pay tax on interest earned (but not yet paid) before April unless you provide an R85 form.

Simply incorrect. It is the payment date that matters not the calculation date.

le_loup

Chaykin wrote: »

Interest on Monthly Savers is only paid on maturity but is calculated daily so you still have to pay tax on interest earned (but not yet paid) before April unless you provide an R85 form.

No you don't.
................... if you don't know the answer, don't make one up and confuse newbies.

Chaykin

So you are saying if I, as a BR taxpayer, were to open a Monthly Saver on e.g. 10 April 2015 which would mature on 10 April 2016, pay in max. amount every month, I would get whole interest tax free?... I really don't think so.

masonic

Chaykin wrote: »

So you are saying if I, as a BR taxpayer, were to open a Monthly Saver on e.g. 10 April 2015 which would mature on 10 April 2016, pay in max. amount every month, I would get whole interest tax free?... I really don't think so.

Yes you would, providing it fell within your personal savings allowance. Now all you need is a time machine and you can do so. I have a RS account maturing in mid-April and I will be receiving that interest tax free.

Chaykin

Well I have one opened in June 2015 so I guess we'll see. I still suspect the bank will deduct tax for interest earned before 6th of April 2016 but I'd like to be mistaken! :-)

CLAPTON

Chaykin wrote: »

Well I have one opened in June 2015 so I guess we'll see. I still suspect the bank will deduct tax for interest earned before 6th of April 2016 but I'd like to be mistaken! :-)

why do you say that?
it's been like that for at least 40 years : so unless a new procedure that been slipped in ...........
do you have some special information that no-one else knows?