Regular Savings Accounts: The Best Currently Available List!

bioboybill

Applied for the Co-op Regular Saver for existing customers yesterday. Every other RS for existing customers I have opened with other banks has taken minutes to open and fund. I had to fill in 5 pages of questions they should already know the answers to before being told it will take them several days to give me a decision. Totally ridiculous!

WillPS

kaMelo said:

mattojgb said:

CuparLad said:

Re: the Nationwide Fairer Share Payment

The payment is taxable savings income. This means that it is treated in the same way as any interest you may earn on your savings account or current account. We are not required to deduct any tax from the payment, but we will report it to HM Revenue & Customs (HMRC).You may be liable to income tax on the payment, depending on whether the total amount of interest you have received in the tax year is more than your Personal Savings Allowance.

https://www.nationwide.co.uk/about-us/fairer-share/terms-and-conditions/

You didn't need to even have any savings to qualify for the payment.

I was thinking I'd kept my interest earnings below the threshold, but this would take me over.

Does it really matter? Surely maximising interest is more beneficial irrespective of any tax liability.

... yes, because 60% of interest at 8% (i.e. a top regular saver) is less than 100% of interest at 5% (i.e. a top ISA).

allegro120

bioboybill said:

Applied for the Co-op Regular Saver for existing customers yesterday. Every other RS for existing customers I have opened with other banks has taken minutes to open and fund. I had to fill in 5 pages of questions they should already know the answers to before being told it will take them several days to give me a decision. Totally ridiculous!

They are no up to speed with modern banking protocol, but I think 7% RS with very flexible conditions is worth filling a simple form, it doesn't take very long to answer a few basic questions.  I can't see waiting for several days as a problem - it wouldn't make any difference to the timescale if they offered the product several days later and opened the account instantly. 

Stargunner

bioboybill said:

Applied for the Co-op Regular Saver for existing customers yesterday. Every other RS for existing customers I have opened with other banks has taken minutes to open and fund. I had to fill in 5 pages of questions they should already know the answers to before being told it will take them several days to give me a decision. Totally ridiculous!

Their systems are antiquated, but I didn’t mind waiting a few days, and as the 12 months term doesn’t start until the day that you fund the account, you are not losing out on any interest.

badger09

bioboybill said:

Applied for the Co-op Regular Saver for existing customers yesterday. Every other RS for existing customers I have opened with other banks has taken minutes to open and fund. I had to fill in 5 pages of questions they should already know the answers to before being told it will take them several days to give me a decision. Totally ridiculous!

I don’t recall having to complete 5 pages of questions when I applied on Sat 24/2. Application was acknowledged immediately & approved Sun 25/2. New account appeared in app on Tue 27/2, so within 2 working days. Not immediate, but not ‘totally ridiculous’ IMO.
I was, however, rather surprised to be thanked (by emai) for joining Co-operative bank and welcomed (by post). I’ve had a current account for over 50 years🤔

NorwichMan

friolento said:

kaMelo said:

mattojgb said:

CuparLad said:

Re: the Nationwide Fairer Share Payment

The payment is taxable savings income. This means that it is treated in the same way as any interest you may earn on your savings account or current account. We are not required to deduct any tax from the payment, but we will report it to HM Revenue & Customs (HMRC).You may be liable to income tax on the payment, depending on whether the total amount of interest you have received in the tax year is more than your Personal Savings Allowance.

https://www.nationwide.co.uk/about-us/fairer-share/terms-and-conditions/

You didn't need to even have any savings to qualify for the payment.

I was thinking I'd kept my interest earnings below the threshold, but this would take me over.

Does it really matter? Surely maximising interest is more beneficial irrespective of any tax liability.

It may well matter for those who get catapulted into Higher Rate tax by this payment. Suddenly their tax free amount drops from £1,000 to £500, and they get to pay 40% tax on anything above £500.

So if someone is employed getting £50,000 salary through PAYE, and also receives £600 interest income, does this put them in the 40% tax band? Would their PSA be £1000 or £500? 

Gers

badger09 said:

bioboybill said:

Applied for the Co-op Regular Saver for existing customers yesterday. Every other RS for existing customers I have opened with other banks has taken minutes to open and fund. I had to fill in 5 pages of questions they should already know the answers to before being told it will take them several days to give me a decision. Totally ridiculous!

I don’t recall having to complete 5 pages of questions when I applied on Sat 24/2. Application was acknowledged immediately & approved Sun 25/2. New account appeared in app on Tue 27/2, so within 2 working days. Not immediate, but not ‘totally ridiculous’ IMO. 
I was, however, rather surprised to be thanked (by emai) for joining Co-operative bank and welcomed (by post). I’ve had a current account for over 50 years🤔

I applied for the RS on Tuesday 27 February - email acknowledged and then nothing until a letter arrived yesterday with sort code and account number saying more checks being done. The account showed on the app so I've funded it. Slow? Extremely, but it worked.

pecunianonolet

NorwichMan said:

friolento said:

kaMelo said:

mattojgb said:

CuparLad said:

Re: the Nationwide Fairer Share Payment

The payment is taxable savings income. This means that it is treated in the same way as any interest you may earn on your savings account or current account. We are not required to deduct any tax from the payment, but we will report it to HM Revenue & Customs (HMRC).You may be liable to income tax on the payment, depending on whether the total amount of interest you have received in the tax year is more than your Personal Savings Allowance.

https://www.nationwide.co.uk/about-us/fairer-share/terms-and-conditions/

You didn't need to even have any savings to qualify for the payment.

I was thinking I'd kept my interest earnings below the threshold, but this would take me over.

Does it really matter? Surely maximising interest is more beneficial irrespective of any tax liability.

It may well matter for those who get catapulted into Higher Rate tax by this payment. Suddenly their tax free amount drops from £1,000 to £500, and they get to pay 40% tax on anything above £500.

So if someone is employed getting £50,000 salary through PAYE, and also receives £600 interest income, does this put them in the 40% tax band? Would their PSA be £1000 or £500? 

PSA would be £500 as it kicks in from income above £50,270. 50k salary plus £600 interest = £50.600

friolento

NorwichMan said:

friolento said:

kaMelo said:

mattojgb said:

CuparLad said:

Re: the Nationwide Fairer Share Payment

The payment is taxable savings income. This means that it is treated in the same way as any interest you may earn on your savings account or current account. We are not required to deduct any tax from the payment, but we will report it to HM Revenue & Customs (HMRC).You may be liable to income tax on the payment, depending on whether the total amount of interest you have received in the tax year is more than your Personal Savings Allowance.

https://www.nationwide.co.uk/about-us/fairer-share/terms-and-conditions/

You didn't need to even have any savings to qualify for the payment.

I was thinking I'd kept my interest earnings below the threshold, but this would take me over.

Does it really matter? Surely maximising interest is more beneficial irrespective of any tax liability.

It may well matter for those who get catapulted into Higher Rate tax by this payment. Suddenly their tax free amount drops from £1,000 to £500, and they get to pay 40% tax on anything above £500.

So if someone is employed getting £50,000 salary through PAYE, and also receives £600 interest income, does this put them in the 40% tax band? Would their PSA be £1000 or £500? 

The interest is part of your taxable income, so it would be £50,600 and just bring you into the HR tax band. Your PSA would only be £500 then.

kaMelo

friolento said:

kaMelo said:

mattojgb said:

CuparLad said:

Re: the Nationwide Fairer Share Payment

The payment is taxable savings income. This means that it is treated in the same way as any interest you may earn on your savings account or current account. We are not required to deduct any tax from the payment, but we will report it to HM Revenue & Customs (HMRC).You may be liable to income tax on the payment, depending on whether the total amount of interest you have received in the tax year is more than your Personal Savings Allowance.

https://www.nationwide.co.uk/about-us/fairer-share/terms-and-conditions/

You didn't need to even have any savings to qualify for the payment.

I was thinking I'd kept my interest earnings below the threshold, but this would take me over.

Does it really matter? Surely maximising interest is more beneficial irrespective of any tax liability.

It may well matter for those who get catapulted into Higher Rate tax by this payment. Suddenly their tax free amount drops from £1,000 to £500, and they get to pay 40% tax on anything above £500.

Although a niche scenario I guess it can matter. It would be better not to run things so close though by using a pension to soak up any 40% income.