Regular Savings Accounts: The Best Currently Available List!

Emily_Joy

grumbler said:

Emily_Joy said:

allegro120 said:

Emily_Joy said:

Gatehouse - they say the RS account pays profit, not interest. For the purpose of tax reduction does it still count towards personal saving allowance?..

For tax purposes 'profit' counts the same as 'interest'.

Now I am getting concerned. Back in summer Gatehouse paid profit from my ISA into Barclays easy access ISA, but Barclays transferred that almost instantly into my current account. I was expecting the "profit" from ISA to be tax free. Is the latter transfer likely to cause an issue?..

Ask Barclays why. Was that because it exceeded your £20K annual contribution allowance?

I was expecting the "profit" from ISA to be tax free.

I don't see the relevance.

I did ask Barclays "why". They told me because I haven't signed ISA declaration for this tax year. It was a old-ish easy access ISA, I haven't realised it is necessary. Then I was told that if I sign the declaration and move money back, it would count to this year contribution. I was surprised, because as far as I remember, ISA interest added to the ISA account never counted towards current year contributions. So I gave up, put money elsewhere, and used the funds later for a house purchase. 

wiseonesomeofthetime

Emily_Joy said:

grumbler said:

Emily_Joy said:

allegro120 said:

Emily_Joy said:

Gatehouse - they say the RS account pays profit, not interest. For the purpose of tax reduction does it still count towards personal saving allowance?..

For tax purposes 'profit' counts the same as 'interest'.

Now I am getting concerned. Back in summer Gatehouse paid profit from my ISA into Barclays easy access ISA, but Barclays transferred that almost instantly into my current account. I was expecting the "profit" from ISA to be tax free. Is the latter transfer likely to cause an issue?..

Ask Barclays why. Was that because it exceeded your £20K annual contribution allowance?

I was expecting the "profit" from ISA to be tax free.

I don't see the relevance.

I did ask Barclays "why". They told me because I haven't signed ISA declaration for this tax year. It was a old-ish easy access ISA, I haven't realised it is necessary. Then I was told that if I sign the declaration and move money back, it would count to this year contribution. I was surprised, because as far as I remember, ISA interest added to the ISA account never counted towards current year contributions. So I gave up, put money elsewhere, and used the funds later for a house purchase. 

The problem in your scenario was that the "profit/interest" left the ISA wrapper as soon as it entered your Barclays current account. As a result, transferring it back into the ISA wrapper counts as a fresh subscription with "new money".

Otherwise, you are correct. Interest earned in an ISA does not contribute towards the £20k allowance, as long as it remains in an ISA.

TheWoodler

The issue was that, as you say, it was an oldish ISA and the rules are that if you did not subscribe or pay in into that ISA in the previous tax year, you cannot do so in the current tax year without a declaration. 

Regardless of where the funds into your old ISA came from (in this case profit or interest from another ISA, but it could have been from salary, for example) this need for another declaration would always have been the case. 

Then, as PP, the money left the ISA wrapper into your non-ISA account and so is ‘new money.’ This shows the pitfalls of having ISA interest/profit paid away, as it can easily lose ISA wrapper protection along the way. 

grumbler

wiseonesomeofthetime said:

Emily_Joy said:

grumbler said:

Emily_Joy said:

allegro120 said:

Emily_Joy said:

Gatehouse - they say the RS account pays profit, not interest. For the purpose of tax reduction does it still count towards personal saving allowance?..

For tax purposes 'profit' counts the same as 'interest'.

Now I am getting concerned. Back in summer Gatehouse paid profit from my ISA into Barclays easy access ISA, but Barclays transferred that almost instantly into my current account. I was expecting the "profit" from ISA to be tax free. Is the latter transfer likely to cause an issue?..

Ask Barclays why. Was that because it exceeded your £20K annual contribution allowance?

I was expecting the "profit" from ISA to be tax free.

I don't see the relevance.

I did ask Barclays "why". They told me because I haven't signed ISA declaration for this tax year. It was a old-ish easy access ISA, I haven't realised it is necessary. Then I was told that if I sign the declaration and move money back, it would count to this year contribution. I was surprised, because as far as I remember, ISA interest added to the ISA account never counted towards current year contributions. So I gave up, put money elsewhere, and used the funds later for a house purchase. 

The problem in your scenario was that the "profit/interest" left the ISA wrapper as soon as it entered your Barclays current account. 

It probably left the wrapper as soon as allegro120   "paid profit from ... ISA into Barclays easy access ISA". It's not clear how the payment was made, but the only way to keep the wrapper is to transfer (part of) ISA from one provider to another, i.e. to request a transfer from Barclays side.

gt94sss2

Emily_Joy said:

allegro120 said:

Emily_Joy said:

Gatehouse - they say the RS account pays profit, not interest. For the purpose of tax reduction does it still count towards personal saving allowance?..

For tax purposes 'profit' counts the same as 'interest'.

Now I am getting concerned. Back in summer Gatehouse paid profit from my ISA into Barclays easy access ISA, but Barclays transferred that almost instantly into my current account. I was expecting the "profit" from ISA to be tax free. Is the latter transfer likely to cause an issue?..

You can't just pay the interest from one ISA to another with another institution and maintain its tax free status.

You would have needed to fill in a ISA transfer form and ask Barclays to request the money from Gatehouse.

soulsaver

A bit of unusually 'On Topic' info:

I can confirm HanleyEBS 5.50% RS: Although min opening is £1k, a test payment isn't rejected... but they are pretty slow at applying deposits (next day)... which is possibly not a problem if you're aware rather than checking every 5 mins...

And inbound payments can come from any bank/BS; outbound must be to linked account.

Both actions confirmed by their efficient sounding CS colleague & subsequently confirmed by personal experience.
   

Middle_of_the_Road

soulsaver said:

A bit of unusually 'On Topic' info:

I can confirm HanleyEBS 5.50% RS: Although min opening is £1k, a test payment isn't rejected... but they are pretty slow at applying deposits (next day)... which is possibly not a problem if you're aware rather than checking every 5 mins...

And inbound payments can come from any bank/BS; outbound must be to linked account.

Both actions confirmed by their efficient sounding CS colleague & subsequently confirmed by personal experience.
   

Thanks for the info re- next day deposits. Will be opening this account, having just released funds from Cov FHS2.

refluxer

RE: Hanley Eco BS deposits - most of the faster payments I made into their Branch Saver showed in online banking the following working day, but one did take two working days so I would recommend only making payments into the Regular Saver from Monday to Thursday and the earlier in the day you can make them, the better.

chris_the_bee

refluxer said:

RE: Hanley Eco BS deposits - most of the faster payments I made into their Branch Saver showed in online banking the following working day, but one did take two working days so I would recommend only making payments into the Regular Saver from Monday to Thursday and the earlier in the day you can make them, the better.

When do they credit interest from?
Date of actual receipt of funds or when shown online?

Pkman

Does the opening deposit £1000 include this month deposit?