Stroud And Swindon 7.05% Bond

rarrarrar

For tax purposes it wont matter whether you receive interest monthly or annually. You will still have to pay tax in accordance with your total earnings.

But the interest is taxed in the year it is received.

So if you opt for annual interest you can end up in the situation of having a low income year followed by a high income year when you receive the annual interest and then reinvest the sum with monthly interest.

This can work in your favour - if you are a high rate tax payer and are about to retire ( or suffer a income drop) putting your savings in an annual interest account can move the interest income into the next tax year when you are only paying basic rate tax.

mk-donald

What finessed tax advice rarrarrar - well done! And hopefully some oldies understand about AER too!

rarrarrar

Remember we >50's have most of the money these days all looking for a good home for it to fund our active early retirement.!!

Geoffo_M

rarrarrar wrote: »

SAGA for those >50 will be offering 6.92% gross with monthly interest from 20th Sept.
You have to ring up to get an application form ( part filled over the phone).
This is up from 6.6%.

There is nothing about this on the SAGA website. They currently appear to be offering 1 and 2 year deals. Is it the same for the 20th September offer, or is it an 11 month term (same as BM)?

rarrarrar

Moneyfacts lists the uprated SAGA bond and SAGA confirmed this by phone yesterday.
The SAGA literature says that the "interest rate on their bonds is recalculated each month and pays the average of the 5 top providers quoted by Moneyfacts."

The calculation date for the current bond was 13th August.
So assuming the date for the next bond was ~13th September when several providers were offering 6.9-7.0% , the new SAGA rate sounds right.

Thomas_Crown

I previously posted about applying online for the S&S 7.05 FR Bond on the 13th September & then posting my cheque the following day, only to read that the bond was fully subscribed by Saturday 15th.

I wondered if S&S would honour applications made online before the bond was closed. They have done the decent thing & my pass book arrived this morning showing that my investment is Issue 57 @ 7.05%.

Well done Stroud & Swindon.