Regular Savings Accounts: The Best Currently Available List!

v_saver

Thank you very much both ! I think keeping your own records on everything is vital so that applies here as well. If the gained interest exceeds the PSA will be declared for sure, i was just wondering if there are any checks on the source of money that go into those RSs or into any Cash ISA in case the amount is higher compared to a "reference point" (i used salary as an example) but i think you were crystal clear on your reply !
I think no one would like to be in trouble so, better ask first.

soulsaver

abz88 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.

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?

This is the regular savings thread - not for a tax discussion.. again. 

Nuggy96

soulsaver said:

abz88 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.

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?

This is the regular savings thread - not for a tax discussion.. again. 

lol someone woke up on wrong side of the bed today

colsten

abz88 said:

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?

It is a legal requirement that you have to declare all your taxable income. Some rewards are taxable, others aren't - it will be specified by the provider. Cashback is never classed as taxable income.

Most people with bank and building society interest will be BR tax payers and not earn more than £1,000 interest a year. Regardless of your tax code and income from interest, or whether you are doing self-assessment or not, HMRC will adjust your tax code with the interest reported by the banks and building societies. They are assuming that your interest reported for preceding tax year will be your interest for the current tax year, unless you tell them differently. There is a thread somewhere on this forum which discusses how you can figure out what banks and building societies have reported to the HMRC. Please do take further tax questions over to that thread.

surreysaver

colsten said:

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.

Yes. Didn't quite word it right. Although if savings are paying 1%, if I'm likely to go over £1k interest, I'll be breaking even by offsetting against my mortgage 

colsten

Thumbs up for the Club Lloyds Regular Saver! My old one matured yesterday. It took but a minute to set up a new one, 2.5% fixed. I funded it with £400 from the matured account, then closed the matured account, which transferred the balance to a non-Lloyds account. All completed in next to no time. This is how all Regular Savers should work.

EDIT: Just had an email from Lloyds, 24 hours after I funded the new account with the max monthly amount: "Reminder: Your Club Lloyds Monthly Saver is now open and ready for you to start saving." DOH, Lloyds!!!

JEFRASER

I switched a bank account using CASS when Lloyds bank last October when they were offering a switch incentive of £125.
I opened a Club Lloyds regular saver at the same time funding it with the max £400 a month. With the maximum £4800 after a year you get around £60 interest. That's very competitive and guaranteed too, with the Bank base lending rate at 0.10% this has decimated savings account interest rates with many other savings providers. 

glider3560

Special_Saver2 said:

First Direct Regular Saver Account

Interest rate: 2.75% gross p.a. fixed
Monthly payment: £25-£300
Miss any payments: No
Penalty-free withdrawals: No, you can close the account early with all interest paid at their standard variable Saving Account interest rate
Age of applicant: Not stated
How to open account: Online or by telephone
Special conditions: If you pay in less than £300 per month then you can make up the extra amount in future months - your maximum balance goes up by £300 per month. You must hold a First Direct 1st Account for as long as you hold this account. The 1st Account costs £10 a month, but it is free in certain circumstances - when you pay in at least £1,000 per month, maintain an average balance of £1,000 or hold a selected first direct additional product. As discussed in posts 1484 and 1488 of the old regular savings thread, you can open up a new regular saver account online or by telephone as soon as the old one has matured. The matured account will still appear on the online banking on maturity day, but you will be able to apply for a new Regular Saver on the same day within internet banking.

It's worth noting that the £10 monthly fee for the First Direct 1st Account was removed on 14th September 2019. This means you can now get the regular saver by opening the current account but not having to make any regular deposits.

SFindlay

glider3560 said:

Special_Saver2 said:

First Direct Regular Saver Account

Interest rate: 2.75% gross p.a. fixed
Monthly payment: £25-£300
Miss any payments: No
Penalty-free withdrawals: No, you can close the account early with all interest paid at their standard variable Saving Account interest rate
Age of applicant: Not stated
How to open account: Online or by telephone
Special conditions: If you pay in less than £300 per month then you can make up the extra amount in future months - your maximum balance goes up by £300 per month. You must hold a First Direct 1st Account for as long as you hold this account. The 1st Account costs £10 a month, but it is free in certain circumstances - when you pay in at least £1,000 per month, maintain an average balance of £1,000 or hold a selected first direct additional product. As discussed in posts 1484 and 1488 of the old regular savings thread, you can open up a new regular saver account online or by telephone as soon as the old one has matured. The matured account will still appear on the online banking on maturity day, but you will be able to apply for a new Regular Saver on the same day within internet banking.

It's worth noting that the £10 monthly fee for the First Direct 1st Account was removed on 14th September 2019. This means you can now get the regular saver by opening the current account but not having to make any regular deposits.

First direct have closed their current accounts to new customers. 

SFindlay

JEFRASER said:

I switched a bank account using CASS when Lloyds bank last October when they were offering a switch incentive of £125.
I opened a Club Lloyds regular saver at the same time funding it with the max £400 a month. With the maximum £4800 after a year you get around £60 interest. That's very competitive and guaranteed too, with the Bank base lending rate at 0.10% this has decimated savings account interest rates with many other savings providers. 

Worth noting as a Club Lloyd's customer you can have the Club regular saver and the Lloyd's standard regular saver at the same time allowing a further £250 per month at 2% fixed.