The Top Easy Access Savings Discussion Area

patpalloon

patpalloon said:

ColdIron said:

That's right, you can't double dip. £18,570 with the right combination of earnings and interest is the figure you are looking for

Or put it another way - as currently earning 14,000 interest. That means I could only earn up to £4,570 pa without paying any tax at all.

The only other ways I could reduce my tax liability would be to pay £20,000 in to an ISA, which wouldn't make a huge difference or move my money in to long term fixes so no interest income for the current year - but would need to be careful on the year the interest is paid as could be a big hit then.

ColdIron

patpalloon said:

ColdIron said:

That's right, you can't double dip. £18,570 with the right combination of earnings and interest is the figure you are looking for

Or put it another way - as currently earning 14,000 interest. That means I could only earn up to £4,570 pa without paying any tax at all.

Yes

You could move some of your savings into an ISA, probably the simplest way of avoiding tax

You could make pension contributions and mitigate any tax paid with tax relief, another popular option

Premium Bonds maybe, not my preferred choice

If you have a partner then gift some and use their allowances

Investments for dividends and capital gains (and associated allowance/rate) possibly but that's a different ballgame

Zopa_Trooper

Moneybox, currently offering one of the best easy access ISA'a, have introduced a £40 refer a friend scheme.

BooJewels

patpalloon said:

ColdIron said:

That's right, you can't double dip. £18,570 with the right combination of earnings and interest is the figure you are looking for

Or put it another way - as currently earning 14,000 interest. That means I could only earn up to £4,570 pa without paying any tax at all.

Yep, that's the number I gave you 9 days ago in this post when you specifically asked how much could you earn before paying tax.

patpalloon

BooJewels said:

patpalloon said:

ColdIron said:

That's right, you can't double dip. £18,570 with the right combination of earnings and interest is the figure you are looking for

Or put it another way - as currently earning 14,000 interest. That means I could only earn up to £4,570 pa without paying any tax at all.

Yep, that's the number I gave you 9 days ago in this post when you specifically asked how much could you earn before paying tax.

Fair enough, absolutely you did. I'm sorry. Putting the max 20k in an ISA would protect about 1k of the 14k interest from tax assuming 5% interest. I already have premium bonds.

Zopa_Trooper

Zopa_Trooper said:

Moneybox, currently offering one of the best easy access ISA'a, have introduced a £40 refer a friend scheme.

I was just thinking about this offer that came through today. I'm just switching an ISA away from Moneybox because they increased their rate for new customers to 5.09% but refused that rate for existing customers, even though we are all on a variable rate. That would have cost them a maximum of £18 but here they are, willing to give £40 away if I send some business their way. Its a strange world we live in.

Wheres_My_Cashback

Are Gatehouse a Mon-Fri 9-5 bank like Al Rayan or can you move funds out 24/7 365 and are they pretty quick?

Eco_Miser

patpalloon said:

BooJewels said:

patpalloon said:

ColdIron said:

That's right, you can't double dip. £18,570 with the right combination of earnings and interest is the figure you are looking for

Or put it another way - as currently earning 14,000 interest. That means I could only earn up to £4,570 pa without paying any tax at all.

Yep, that's the number I gave you 9 days ago in this post when you specifically asked how much could you earn before paying tax.

Fair enough, absolutely you did. I'm sorry. Putting the max 20k in an ISA would protect about 1k of the 14k interest from tax assuming 5% interest. I already have premium bonds.

Yes, but that's 1k per year 'forever', and you can protect another 1k from April 6th next year, and again the year after, etc. so in less than 14 years it will all be protected. And each time you protect 1k, you can earn another 1k without paying tax.

While I've been following your terminology about protecting 1k, you actually protect whatever interest that £20k earns, which may be more.

Zopa_Trooper

Eco_Miser said:

patpalloon said:

BooJewels said:

patpalloon said:

ColdIron said:

That's right, you can't double dip. £18,570 with the right combination of earnings and interest is the figure you are looking for

Or put it another way - as currently earning 14,000 interest. That means I could only earn up to £4,570 pa without paying any tax at all.

Yep, that's the number I gave you 9 days ago in this post when you specifically asked how much could you earn before paying tax.

Fair enough, absolutely you did. I'm sorry. Putting the max 20k in an ISA would protect about 1k of the 14k interest from tax assuming 5% interest. I already have premium bonds.

Yes, but that's 1k per year 'forever', and you can protect another 1k from April 6th next year, and again the year after, etc. so in less than 14 years it will all be protected.

Plus put one in your name, one in the wife's, and one in your eldest sons and that's £60,000 covered in an instant. Better still, if you drop down dead you don't have to worry about your family going short while they sort the money out.

allegro120

Wheres_My_Cashback said:

Are Gatehouse a Mon-Fri 9-5 bank like Al Rayan or can you move funds out 24/7 365 and are they pretty quick?

No, not like Al Rayan. I've made weekend deposits - all arrived on the same day as long as they were sent before 1pm.  Once I've deposited on Friday evening and it arrived on Saturday.