Savings accounts paying interest yearly - is tax incurred on accrual or payout?

EachPenny

Sceptic001 wrote: »

Good to know that some loyal NW customers are more equal than others.

But with a rate of 0.75% (for 15 year's loyalty) who would want to keep more than £50k in the account?

You could argue the customers enabled, perhaps encouraged (?), to save up to £5m in the account are the ones who are disadvantaged.

The limit should be reduced to £1 to ensure all customers are equally protected from pathetic interest rates.

Plus

ermine wrote: »

The trouble with holding the cash to buy a house is you don't know when you need to deploy it, but you need access right there and right now, pronto. The downside of not having it is missing out or incurring costs. I can eat a sub-par interest rate for access.

Depending on your timeframe, regular savers can still work. Many of them allow withdrawals or account closures without notice. On some you don't get any interest on the money withdrawn. However it depends what your timeframes are like. If you're househunting and are quite likely to buy a house in the next few months, they're no good. If you might buy maybe this year maybe next year, you can think about the probability of finding a house in less than a year. It might turn out that it's better to get 5% with a 1 in N chance of getting nothing than a guaranteed cert of getting 1%.