bank interest does not add up

steviemidnight

i just got paid my interest on my halifax web saver

5.3% var over a year on £3000 and they paid me £56. i thought after tax (i'm higher level) then it should be about 40% of £150????

before i get abuse for just leaving it there i meant to by a kitchen but have yet to get round to it.


Please advise

Thanks

MrChips

If the £3000 has been in the account for a whole year, then I agree the interest seems low.

Regarding the tax, even if you are a higher rate payer, only 20% will be taken as tax, it is up to you to pay the rest when you complete your self assessment form at the end of the year.

ManAtHome

If it's variable, probably varied between a little over 4% and 5.3% over the last year..?

Having said that, £56 is £70 gross (20% savings tax deducted), only around 2.3% so sounds light - is this for a full year?

LittleVoice

If it helps you work out the correct amount, I have the following data:

Since 1 September 2006, the variable gross rate has not been below 4.75%.
It went up to 5% on 1 December, 5.05% on 1 June, and 5.3% on 1 August.

steviemidnight

thanks, i'll await my statement from the bank with the break down.

Milarky

LittleVoice wrote: »

If it helps you work out the correct amount, I have the following data:

Since 1 September 2006, the variable gross rate has not been below 4.75%.
It went up to 5% on 1 December, 5.05% on 1 June, and 5.3% on 1 August.

Assuming the OP's anniversary was around 1st October the average interest rate is c.5.016% - so '5%' is about right. The average balance however is another matter. He hasn't made clear if the average sum saved throughout the year is close to £3000 or not (I'd say it wasn't)

ManAtHome

I think it may be a part-year payment - pretty sure Halifax credit interest around end of March which would tie in with an account opened in October (around 5 months ish interest). The "missing" interest will appear next March, or when the account is closed.

Which reminds me... OY YOU - stick it in another account!!