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Santander 123 Interest & Personal Savings Allowance
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kayen
Posts: 64 Forumite
I have a Santander 123 account and earn the maximum interest per month net of tax.
With the personal savings allowance coming in 6 April my understanding is that the first £1000 of interest earned per tax year for basic rate tax payers will not be taxed. Is this correct?
So I called Santander to ask how this would work with the Santander 123 account. - They advised that the tax free £1000 personal savings allowance does not apply to the 123 account as it is a current account, the PSA only apples to interest in savings accounts. Is this correct?
With the personal savings allowance coming in 6 April my understanding is that the first £1000 of interest earned per tax year for basic rate tax payers will not be taxed. Is this correct?
So I called Santander to ask how this would work with the Santander 123 account. - They advised that the tax free £1000 personal savings allowance does not apply to the 123 account as it is a current account, the PSA only apples to interest in savings accounts. Is this correct?
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Comments
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No Ha Ha did they really say that0
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I have a Santander 123 account and earn the maximum interest per month net of tax.
With the personal savings allowance coming in 6 April my understanding is that the first £1000 of interest earned per tax year for basic rate tax payers will not be taxed. Is this correct?
So I called Santander to ask how this would work with the Santander 123 account. - They advised that the tax free £1000 personal savings allowance does not apply to the 123 account as it is a current account, the PSA only apples to interest in savings accounts. Is this correct?
No, it's not correct. No tax will be deducted by any bank for an interest payment no matter how much is earned.
You could have £10,000,000 in the bank in a current account paying 0.1% (a very unwise use of funds). You would get £10,000 interest but from April it's all paid gross instead of net. You would then put that figure on your self assessment and pay the appropriate tax on it.:footie:
Regular savers earn 6% interest (HSBC, First Direct, M&S) Loans cost 2.9% per year (Nationwide) = FREE money. 0 -
haha yes they did roddydogs....and I just saw Martins newsletter that just came out this morning about the same thing...Santander I shake my head0
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