The Top Easy Access Savings Discussion Area

patpalloon

How much interest can you earn tax free if no other income? Is it personal allowance + personal savings allowance = £17,570? If you have an income the tax free bit is only £1000 ? Or can you earn up to £12,570 without any impact on your interest?

ircE

janusdesign said:

@soulsaver

Skipton BS Tracker Account Issue 5 - 5.06% (£1 - £1,000,000) - Monthly or Annual interest
"The rate of interest is guaranteed to track 0.19% below the Bank of England Base Rate for 24 months."
Base Rate Tracker - Skipton Building Society

Ts & Cs:

• changes to Bank Rate will be reflected within 14 days
• annual interest paid on the anniversary account opening
• monthly interest paid on the same date as account opening every month
• account opening date = date they receive your first payment
  
• joint accounts allowed
• no notice, no penalties for withdrawals
• cut off time for withdrawals is 8pm on working days - interest continues to accrue until the next working day
  

Edit: only just realised it's barely better than Skipton's OBS currently at 5.04%. Are we thinking that this account will be more useful when Bank Rate starts falling?

chris_the_bee

patpalloon said:

How much interest can you earn tax free if no other income? Is it personal allowance + personal savings allowance = £17,570? If you have an income the tax free bit is only £1000 ? Or can you earn up to £12,570 without any impact on your interest?

If you’re a basic rate taxpayer you have an allowance of £1,000 in interest earned before tax is due. If you’re a higher rate taxpayer, the Personal Savings Allowance (PSA) is £500. Additional rate taxpayers lose the PSA completely.

There’s a third level that’ll wipe out tax on interest, and this is for low earners. There’s effectively an extra £5,000 allowance for interest earned, though how much you’ll get depends on your salary.

To be eligible you need to earn less than £17,570 and the total amount is a little complex. For anyone earning under £12,570 you get the full £5,000 a year allowance.

Then for every £1 you earn over £12,570, the starting rate reduces by £1. So someone earning £15,570 a year would lose £3,000 from the allowance, giving them a total of £2,000 they could earn.

This is in addition to the PSA which would be worth the full £1,000.

https://www.gov.uk/apply-tax-free-interest-on-savings

IanManc

ircE said:

Edit: only just realised it's barely better than Skipton's OBS currently at 5.04%. Are we thinking that this account will be more useful when Bank Rate starts falling?

The Online Bonus Saver is no longer available and is an annual interest account, whereas the new Base Rate Tracker is available with either annual or monthly interest.

Also, the Online Bonus Saver had a bonus rate for 12 months, but the new Base Rate Tracker is tied to 0.19% below base rate for 24 months.

allegro120

KevinG said:

intalex said:

janusdesign said:

@soulsaver

Skipton BS Tracker Account Issue 5 - 5.06% (£1 - £1,000,000) - Monthly or Annual interest
"The rate of interest is guaranteed to track 0.19% below the Bank of England Base Rate for 24 months."
Base Rate Tracker - Skipton Building Society

Bye bye Newcastle BR tracker...

I took all but £1 out of that yonks ago when it got so uncompetitive. It was really good for a short time until it fell far behind.

Yes Newcastle tracker was good only for a couple of weeks. I too left £1 there to keep the membership. Also got £25 as a compensation for difficulties with opening the account, there was some confusion with providing ID, can't remember exactly what the problem was.

BooJewels

Thanks for the assorted heads up about the new issue 5 Skipton Base Rate Tracker, I managed to open it and close my issue 3 (which was 0.9% below base) in about 5 minutes and get an extra 0.68% on those funds for minimal effort.  Much appreciated.

Thumbs_Up

KevinG said:

intalex said:

janusdesign said:

@soulsaver

Skipton BS Tracker Account Issue 5 - 5.06% (£1 - £1,000,000) - Monthly or Annual interest
"The rate of interest is guaranteed to track 0.19% below the Bank of England Base Rate for 24 months."
Base Rate Tracker - Skipton Building Society

Bye bye Newcastle BR tracker...

I took all but £1 out of that yonks ago when it got so uncompetitive. It was really good for a short time until it fell far behind.

I have taken out the £1 and closed the account, easy, and no faff. Why can't some banks let you do this online?

mebu60

intalex said:

janusdesign said:

@soulsaver

Skipton BS Tracker Account Issue 5 - 5.06% (£1 - £1,000,000) - Monthly or Annual interest
"The rate of interest is guaranteed to track 0.19% below the Bank of England Base Rate for 24 months."
Base Rate Tracker - Skipton Building Society

Bye bye Newcastle BR tracker...

Goodbye Skipton Tracker Issue 3 more like. I shall move the £1 (plus interest to date) into the Issue 5 while funds are at 5.15% in their Single Access Issue 1.

I shall retain my £1 in the Newcastle Base Rate Tracker. Who knows what will happen between now and 31:12:25 when it expires. Plus they paid me a tax-free £50 for their id failures during the opening shambles. 

Edit: The BR-0.9 is linked to my nominated account and also feeds the Member Regular Saver so there will be a little more faff involved. 

ColdIron

BooJewels said:

Thanks for the assorted heads up about the new issue 5 Skipton Base Rate Tracker, I managed to open it and close my issue 3 (which was 0.9% below base) in about 5 minutes and get an extra 0.68% on those funds for minimal effort.  Much appreciated.

I did the same but am having a devil of a job getting my nominated account for withdrawals verified, it is not shared between accounts

Be careful of closing the BRT Issue 3 if it is the only verified account you have with Skipton until you know you have a route for withdrawal

BooJewels

ColdIron said:

BooJewels said:

Thanks for the assorted heads up about the new issue 5 Skipton Base Rate Tracker, I managed to open it and close my issue 3 (which was 0.9% below base) in about 5 minutes and get an extra 0.68% on those funds for minimal effort.  Much appreciated.

I did the same but am having a devil of a job getting my nominated account for withdrawals verified, it is not shared between accounts

Be careful of closing the BRT Issue 3 if it is the only verified account you have with Skipton until you know you have a route for withdrawal

I hadn't spotted that, as I did it quickly as I needed to do something else, so was going to return to it anyway.  I do have an easy access saver that receives interest from fixes, which I then feed into their regular saver, so I can withdraw that way if required.  I seem to think last time, when I went to add nominated accounts, it gave me the option to use the ones already set up for the easy access.  I shall check later.