The Top Easy Access Savings Discussion Area

chris1

ncb123 wrote: »

Have just applied for an online saver account with the Birmingham Midshires. Not put in any money as yet and was rather taken aback by the clause I found in their terms;

'We may limit the amount which may be withdrawn from or paid into your account if we think that it is necessary in order to protect our business interests as a whole, or to comply with any court order, legal requirement or request from a regulator to which we are subject.'

So basically if there was a run, like on NRock, they could stop people getting their money yes. It gives them carte blanche to hang onto your money for whatever reason they might choose actually.

Would appreciate some feedback on this as I am not sure I'm happy to proceed with the application now.

Unfortunately I think most of them now have that type of clause.

ASM_2

I have an offset mortgage with FD and have spare credit available of £50K currently at a rate of 6.2%. The Halifax are offering 10%

(http://www.halifax-international.com/Savings/regular-saver.asp)

with a regular saver upto £2K per month. If I transfer money from my mortgage to this saver account I would make 3.8% on the 'Banks Money' - Yippee. The question is though, can I just pay tax on 3.8% interest being earned, I do not want to pay tax on the full 10%, as I have had the cost of borrowing the money (6.2%), is this possible?

I reckon I would make £500 a year, without having to do much.

Mr._H_2

ASM wrote: »

The question is though, can I just pay tax on 3.8% interest being earned, I do not want to pay tax on the full 10%, as I have had the cost of borrowing the money (6.2%), is this possible?

If you're talking about a mortgage on a buy-to-let property, yes (tax relief is available on interest payments charged on buy-to-let mortgages); if you're talking about a residential mortgage on your own home, no (MIRAS was abolished years ago).

dracula

Not sure if i'm in the right place for this question but i'll ask anyway.
My partners son has just turned 16 and my partner has been saving money for him in tha halifax monthly saver which now has a balance of about £2600, but now has to pay tax. She's still saving £40 a month. Any ideas as to the best accounts would be appreciated.

Mr._H_2

dracula wrote: »

Not sure if i'm in the right place for this question but i'll ask anyway.
My partners son has just turned 16 and my partner has been saving money for him in tha halifax monthly saver which now has a balance of about £2600, but now has to pay tax. She's still saving £40 a month. Any ideas as to the best accounts would be appreciated.

Is the account in the son's name? Is the son earning any other money beyond the interest from that account? If not, he doesn't have to pay tax on the interest. He needs to get an R85 form from Halifax.

dracula

Thanks for the reply.
The account is in my partners name Tee her son and no he's not earning any more. but apparently it needs to go into his name now he's 16. i've been looking at fixed rate savers or isa's

JimmyTheWig

ASM wrote: »

I have an offset mortgage with FD and have spare credit available of £50K currently at a rate of 6.2%. The Halifax are offering 10%

(http://www.halifax-international.com/Savings/regular-saver.asp)

with a regular saver upto £2K per month. If I transfer money from my mortgage to this saver account I would make 3.8% on the 'Banks Money' - Yippee. The question is though, can I just pay tax on 3.8% interest being earned, I do not want to pay tax on the full 10%, as I have had the cost of borrowing the money (6.2%), is this possible?

I reckon I would make £500 a year, without having to do much.

You cannot offset the interest on your mortgage against the interest gained on your regular saver. It just doesn't work like that.
Two points, though...
1. If you have a non-tax paying spouse, then open the regular saver in their name and they won't pay any tax on it.
2. If you (or your spouse) are regular income tax payers then even after tax at 20% you'd still be earning 8% from Halifax and could make a profit.

If, has been said, this is a buy-to-let property then you may be able to offset the interest on your mortgage against something else, but if this is the case then I doubt an offset mortgage would be best, anyway.

spikeylance

hi all

I have been checking Martin's Best ISA advice page regularly and i see that overall the ICESAVE looks like the best option for me but the advice on the page hasn't changed for quite a while.

I am just wondering if anyone has any other ISA's that they advise i look at before i go for this one?

spikeylance

Mr._H_2

spikeylance wrote: »

hi all

I have been checking Martin's Best ISA advice page regularly and i see that overall the ICESAVE looks like the best option for me but the advice on the page hasn't changed for quite a while.

I am just wondering if anyone has any other ISA's that they advise i look at before i go for this one?

spikeylance

The ISA sub-board would probably be a good place to start.

disney_cjd

I see First Direct have dropped their e-saving rate to 4.9 percent gross and still with a months penalty interest if you withdraw. That sucks. Time ro read the posts above and find a good place for my savings.....

I want instant access and gross rate for my wife as its all hers.

Thanks