Virgin Money Regular Saver interest

surreysaver

glider3560 said:

surreysaver said:

colsten said:

schiff said:

I don't see the point of trying to manipulate interest into different tax years by electing for monthly interest. If you receive £1000+ in a tax year the excess is taxed at 20% wherever it falls.

Well, there could be situations where your total interest across two consecutive tax years could be, say £1,200, and where you could split it into £900 in one tax year and £300 in the next. So you could save paying 20% tax on £200, i.e. £24. Pointless exercise, though, as you say, if you get more than £1,000 every year. And even more pointless if your accounts don't actually offer monthly interest, lol.

Also if you are hovering between basic and higher rate tax band, you might want to perform some slightly unnatural acts to stop your interest going over £500, or at least contain the amount you have to tax at 40%. Again, it would be a pointless exercise if you are likely to be HR in consecutive years, and if your interest will remain above £500.

And of course, with interest rates plummeting, I'm over the £1k threshold this year, will likely be straddling it next year, so I'm holding off renewing my Regular Savers for HSBC etc until after April 6th, as the year after next will likely be nowhere near £1k

Same for me.  My personal savings allowance allowance is only £500 (and 40% tax on anything over), but next year my interest will be lower due to decreased rates and getting a new £20k ISA allowance in April.  Shifting interest to the next tax year will be very beneficial to me this year.

I avoid 40% by paying more into my pension and maxing my Share Incentive Plan at work!

colsten

surreysaver said:

glider3560 said:

surreysaver said:

colsten said:

schiff said:

I don't see the point of trying to manipulate interest into different tax years by electing for monthly interest. If you receive £1000+ in a tax year the excess is taxed at 20% wherever it falls.

Well, there could be situations where your total interest across two consecutive tax years could be, say £1,200, and where you could split it into £900 in one tax year and £300 in the next. So you could save paying 20% tax on £200, i.e. £24. Pointless exercise, though, as you say, if you get more than £1,000 every year. And even more pointless if your accounts don't actually offer monthly interest, lol.

Also if you are hovering between basic and higher rate tax band, you might want to perform some slightly unnatural acts to stop your interest going over £500, or at least contain the amount you have to tax at 40%. Again, it would be a pointless exercise if you are likely to be HR in consecutive years, and if your interest will remain above £500.

And of course, with interest rates plummeting, I'm over the £1k threshold this year, will likely be straddling it next year, so I'm holding off renewing my Regular Savers for HSBC etc until after April 6th, as the year after next will likely be nowhere near £1k

Same for me.  My personal savings allowance allowance is only £500 (and 40% tax on anything over), but next year my interest will be lower due to decreased rates and getting a new £20k ISA allowance in April.  Shifting interest to the next tax year will be very beneficial to me this year.

I avoid 40% by paying more into my pension and maxing my Share Incentive Plan at work!

Not everybody is working.

Vortigern

surreysaver said:

And of course, with interest rates plummeting, I'm over the £1k threshold this year, will likely be straddling it next year, so I'm holding off renewing my Regular Savers for HSBC etc until after April 6th, as the year after next will likely be nowhere near £1k

You take the chance that HSBC may have withdrawn that account, or reduced the rate by then. Better to earn the interest and pay a little tax, than to earn no interest.

surreysaver

Vortigern said:

surreysaver said:

And of course, with interest rates plummeting, I'm over the £1k threshold this year, will likely be straddling it next year, so I'm holding off renewing my Regular Savers for HSBC etc until after April 6th, as the year after next will likely be nowhere near £1k

You take the chance that HSBC may have withdrawn that account, or reduced the rate by then. Better to earn the interest and pay a little tax, than to earn no interest.

I don't disagree, but the risk is only about £4, as the money will be saving 0.85% tax free in my offset mortgage if it wasn't earning 1% in a savings account

glider3560

No-one has posted here to say they've received their interest yet.  What am I going to do without the usual live commentary we get on this thread?

molerat

Our savings online service will be unavailable between 10pm on Thursday 11 March and 1am on Friday 12 March for planned maintenance work to improve our service.

That is when interest will be applied and shutting the site down for maintenance will stop the double bubble interest hack.

veryintrigued

glider3560 said:

No-one has posted here to say they've received their interest yet.  What am I going to do without the usual live commentary we get on this thread?

Usual live commentary on this thread?

This thread was bumped up from three years ago....

Bit of a weird use of your time? Mind you, there's a lot of it around.

veryintrigued

molerat said:

Our savings online service will be unavailable between 10pm on Thursday 11 March and 1am on Friday 12 March for planned maintenance work to improve our service.

That is when interest will be applied and shutting the site down for maintenance will stop the double bubble interest hack.

Thank you.
Virgins interest systems do seem to have batch programs running at 22:00hrs+ each time.

someone

molerat said:

That is when interest will be applied and shutting the site down for maintenance will stop the double bubble interest hack.

what is the "double bubble interest hack" ?

veryintrigued

someone said:

molerat said:

That is when interest will be applied and shutting the site down for maintenance will stop the double bubble interest hack.

what is the "double bubble interest hack" ?

A few versions of the RS ago the Virgin systems batch programs for maturing RS ran at 22:00 ish and if you withdrew the funds as soon as they became available Virgin transferred the maturing funds with the interest added twice.

It occurred for half a dozen of the issues and was a, maybe, 30 minute window.

Virgin were aware and so closed this hack.