Regular Savings Accounts: The Best Currently Available List!

abz88

Email through from YBS, they are further reducing their rates after the second BoE base rate reduction
-Regular Saver - down to 1%
- Regular Saver Issue 2 - down to 1.3%
- Regular Saver Issue 3 - down to 1%.
New rates take effect from 20/04/2020

v_saver

Hi guys, i was going through this thread (and others as well), apologies if that's not the right thread to ask and if has been answered before;
I see most of you have many regular savers, assuming you are depositing the maximum amount allowed to get the most out of it. Are those deposits in any way compared to someone's income by the hmrc ? e.g. The total amount of deposits to 15 RSs is way higher than one's taxable income (salary).
Is there a possibility someone finds himself in trouble ? Please feel free to correct me if i get something wrong.

Thank you

colsten

surreysaver said:

schiff said:

I've got 18 RSs paying 2% or more fixed. I wonder how rosy that will look in 12 months' time! I might even be under £1000 pa interest for tax purposes in 2021/22.

I'm hoping I will be too!  

I'd rather be paying 20% tax on something over £1,000 than not getting any more than £1,000.

colsten

v_saver said:

Hi guys, i was going through this thread (and others as well), apologies if that's not the right thread to ask and if has been answered before;
I see most of you have many regular savers, assuming you are depositing the maximum amount allowed to get the most out of it. Are those deposits in any way compared to someone's income by the hmrc ? e.g. The total amount of deposits to 15 RSs is way higher than one's taxable income (salary).
Is there a possibility someone finds himself in trouble ? Please feel free to correct me if i get something wrong.

There is always a possibility, or even likelihood, to get into trouble if you fiddle your taxes.

Having savings in excess of your income doesn't mean you have fiddled your taxes. Regular Savers can be funded from a multitude of sources, not just salary. In fact, it is likely that a lot of the Regular Saver account holders don't draw a salary as they are retired.

abz88

colsten said:

v_saver said:

Hi guys, i was going through this thread (and others as well), apologies if that's not the right thread to ask and if has been answered before;
I see most of you have many regular savers, assuming you are depositing the maximum amount allowed to get the most out of it. Are those deposits in any way compared to someone's income by the hmrc ? e.g. The total amount of deposits to 15 RSs is way higher than one's taxable income (salary).
Is there a possibility someone finds himself in trouble ? Please feel free to correct me if i get something wrong.

There is always a possibility, or even likelihood, to get into trouble if you fiddle your taxes.

Having savings in excess of your income doesn't mean you have fiddled your taxes. Regular Savers can be funded from a multitude of sources, not just salary. In fact, it is likely that a lot of the Regular Saver account holders don't draw a salary as they are retired.

A lot of people also drip feed their savings into regular savers to gain maximum interest. Just make sure you declare any amounts of interest earned over and above your tax free savings allowance

colsten

abz88 said:

A lot of people also drip feed their savings into regular savers to gain maximum interest. Just make sure you declare any amounts of interest earned over and above your tax free savings allowance

The providers are reporting your annual interest to the HMRC, anyway. As that reporting is a bit hit-and-miss, though, it is important that you keep your own records, too.

SFindlay

colsten said:

abz88 said:

A lot of people also drip feed their savings into regular savers to gain maximum interest. Just make sure you declare any amounts of interest earned over and above your tax free savings allowance

The providers are reporting your annual interest to the HMRC, anyway. As that reporting is a bit hit-and-miss, though, it is important that you keep your own records, too.

On that note, it's relatively easy to keep track of interest from savings accounts and regular savers but do current account rewards count to the tax free allowance? Like of Santander 123 account and Lloyds/BoS cashback rewards? 

Frogletina

SFindlay said:

colsten said:

abz88 said:

A lot of people also drip feed their savings into regular savers to gain maximum interest. Just make sure you declare any amounts of interest earned over and above your tax free savings allowance

The providers are reporting your annual interest to the HMRC, anyway. As that reporting is a bit hit-and-miss, though, it is important that you keep your own records, too.

On that note, it's relatively easy to keep track of interest from savings accounts and regular savers but do current account rewards count to the tax free allowance? Like of Santander 123 account and Lloyds/BoS cashback rewards? 

No

apt

Cashback isn't interest.

abz88

colsten said:

abz88 said:

A lot of people also drip feed their savings into regular savers to gain maximum interest. Just make sure you declare any amounts of interest earned over and above your tax free savings allowance

The providers are reporting your annual interest to the HMRC, anyway. As that reporting is a bit hit-and-miss, though, it is important that you keep your own records, too.

Would you not still need to declare it on a self assessment tax return? I haven't heard of HMRC sending folk a bill for tax on savings when there has been no self assessment?