Minimising amount of current/savings accounts to reduce faff.

Zero_Sum

dont_use_vistaprint wrote: »

That is very good going, much better than me! But inst the price actually nearly £700 minus £261 - the alternative / interest of having all in Marcus at 1.5% - and then for many minus 40% tax if we already have investments or P2P using any allowances, so net profit of £156.60 ?

Nah, its £940 minus £261.

For those who are higher rate tax payers, its not as lucrative and probably not really worth it, and might as well just chuck it in an ISA. But the majority of people arent & get a £1000 allowance for interest income. Plus cash back earnings arent taxable & neither are the few quids worth of club card points i get from Tesco bank.

dont_use_vistaprint

Zero_Sum wrote: »

Nah, its £940 minus £261.

For those who are higher rate tax payers, its not as lucrative and probably not really worth it, and might as well just chuck it in an ISA. But the majority of people arent & get a £1000 allowance for interest income. Plus cash back earnings arent taxable & neither are the few quids worth of club card points i get from Tesco bank.

Ahh yes, I misread, you deducted the Marcus comparison.

crumpetman

Herbalus wrote: »

I’ve just run some calcs.

Gain is £330 in reg savers, £345 in interest, and £265 in rewards, totalling £940.

I'm just being nosey, how do you get £265 in rewards? Is this multiple of the same account?

fudgecat

Personally, I find the "faff" quite amusing as a hobby and definitely worth the time spent. We have both had to take ill health early retirement and only have my small teacher`s pension to live on at the moment. The "faff" keeps me on top of the finances (I keep a spreadsheet of all accounts and balances and update it twice a month). My husband hates it, but he hates dealing with or talking about money in any shape or form! The spreadsheet and a document with all data means that if either of us goes under a bus, the survivor will have all the information. On average, I am aiming to make the full £1k tax free for each of us from interest over some 40 bank accounts, regular savers, savings, etc. It looks like we should exceed this, so now I need to think ISA to prevent us paying tax. Up to now I have only dipped my toe into share type investments, but I suppose I will need to get my head round greater returns (but greater risk) in the new year.
If you have a bit of time on your hands, it is well worth it, in my opinion. Please note that we have been poor most of our lives until we sold our house in Surrey and moved to Norfolk.

Herbalus

crumpetman wrote: »

I'm just being nosey, how do you get £265 in rewards? Is this multiple of the same account?

2x Halifax rewards (£48)
1x Barclays blue (currently £48 plus £84)
1x coop (£48)
1x Santander lite for bills (£36)

Will go down quite a bit when the Barclays double rewards for 1 year drops off.

I’m not even sure I’m playing the game that well as there are probably other accounts I’ve missed or could get jointly.

dont_use_vistaprint

Herbalus wrote: »

2x Halifax rewards (£48)
1x Barclays blue (currently £48 plus £84)
1x coop (£48)
1x Santander lite for bills (£36)

Will go down quite a bit when the Barclays double rewards for 1 year drops off.

I’m not even sure I’m playing the game that well as there are probably other accounts I’ve missed or could get jointly.

All those rewards have 20% tax deducted by the banks dont they ? Or is that the actual amount paid into your account after tax

Herbalus

dont_use_vistaprint wrote: »

All those rewards have 20% tax deducted by the banks dont they ? Or is that the actual amount paid into your account after tax

These are amounts received into bank account. Halifax takes 20% at source (technically they pay £2.50 per month, but you receive £2) and I don’t think the others do anything with tax.

With Santander you definitely don’t need to do anything with tax as it’s cashback not interest.

Zero_Sum

dont_use_vistaprint wrote: »

All those rewards have 20% tax deducted by the banks dont they ? Or is that the actual amount paid into your account after tax

With these rewards are taxable, cashback isnt.
Halifax pay net of tax, which means if you're a higher rate payer you only get £1 rather than the advertised £2. Others tend to be cashback

noh

Herbalus wrote: »

These are amounts received into bank account. Halifax takes 20% at source (technically they pay £2.50 per month, but you receive £2) and I don’t think the others do anything with tax.

With Santander you definitely don’t need to do anything with tax as it’s cashback not interest.

The CoOp £4 monthly reward is paid net of 20% tax. It has the same tax treatment as the Halifax reward payments.

https://www.co-operativebank.co.uk/assets/pdf/bank/currentaccounts/everyday-rewards/benefits-document.pdf

noh

fudgecat wrote: »

.... We have both had to take ill health early retirement and only have my small teacher`s pension to live on at the moment.............................................................................. On average, I am aiming to make the full £1k tax free for each of us from interest over some 40 bank accounts, regular savers, savings, etc. It looks like we should exceed this, so now I need to think ISA to prevent us paying tax. Up to now I have only dipped my toe into share type investments, but I suppose I will need to get my head round greater returns (but greater risk) in the new year................................

Don't forget about savings starting rate which is 0% tax on the first £5000 which is used before the £1000 savings allowance.
If your income from your pension is below the personal allowance you could earn at least £6000 in interest and not be due to pay any tax.
https://www.moneysavingexpert.com/savings/tax-free-savings/