Tesco new 1.35% rate (including bonus) Internet saver

18cc

That is why forums like this are so good you learn something everyday!

18cc

Do you have a link to the HMRC one because obviously that trumps the Telegraph or anybody else. I have to say this is very very confusing I wonder if anybody has the definitive answer

18cc

Why are there no eskbankers when you need them!

eskbanker

pavane wrote: »

A lot of confused bunnies here.


The comments on AER are hilarious. Contradicting oneself in the same paragraph. Tis the season so I won't quote them to give you a chance to edit to save face.


TLDR version is go with monthly unless you want to influence the tax year as explained.

pavane wrote: »

It was not your confusion I found funny. You are the only one in recent exchanges without egg on your face. hoc and Malchester speak the truth and others are now trying to dig out finding caveats and weaseling out on semantics. It was the righteous one confusing you with contradictory comments which you exposed I found funny. We go from "why would you pick lower AER" to "monthly AER is lower but it works out the same if you don't withdraw".

Am I to tell by the process of elimination that your rather oblique comments relate to my posts? If so, please feel free to highlight any actual text that you feel should be challenged, rather than inventing pseudo-quotes such as "monthly AER", which wasn't referenced as it clearly doesn't exist as a concept, as that would indeed be self-contradictory, so if you still don't understand the difference between AER and gross interest rate then you would appear to be the one who's confused....

xylophone

https://www.gov.uk/hmrc-internal-manuals/savings-and-investment-manual/saim2440

eskbanker

18cc wrote: »

Why are there no eskbankers when you need them!

I got here as fast as I could but looks like I was too late, others seem to have provided suitably accurate info already

antrobus

The HMRC internal Savings and Investment Manual can now be found online. SAIM2440 states;

ITTOIA05/S370 provides that tax is charged on the full amount of interest arising in the tax year....Interest ‘arises’ when it is received or made available to the recipient. Interest has been made available if it is credited to an account on which the account holder is free to draw.

Interest: taxation of interest: when interest arises
https://www.gov.uk/hmrc-internal-manuals/savings-and-investment-manual/saim2440

P.S. ITTOIA05 is the Income Tax (Trading and Other Income) Act 2005.

18cc

Thank you Ianmanc