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QIB UK

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Hello, has anyone used this bank for a fixed rate savings bond and , if so how do you rate them? I'm thinking about getting a 2 or 3 year fixed rate bond with them but i'm unsure really. I would prefer a decent interest fixed rate paid monthly but the only one available atm is from Atom and i dont have a smartphone to use their app so theyre out of the equation!
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  • Have had a number of fixed rate bonds with QIB via Raisin with no problems at all.
    I choose the rooms that I live in with care,
    The windows are small and the walls almost bare,
    There's only one bed and there's only one prayer;
    I listen all night for your step on the stair.
  • wmb194
    wmb194 Posts: 4,903 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    You don't necessarily need a smartphone as Atom's app will work on a tablet.
  • Thanks, i havent got a tablet either! The Al Ryan fixed rates seem ok and i assume the option to be paid quarterly means every 3 months and not a quarter of the full terms, ie. quarter of either 2 or 3 years?
  • masonic
    masonic Posts: 27,176 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    Thanks, i havent got a tablet either! The Al Ryan fixed rates seem ok and i assume the option to be paid quarterly means every 3 months and not a quarter of the full terms, ie. quarter of either 2 or 3 years?
    Yes it's every quarter year, not dependent on the term length.
  • Hello I took one of these bonds out last year. Does the interest get paid annually or don’t you see and growth in your balance while year 5 please
  • Bigwheels1111
    Bigwheels1111 Posts: 3,036 Forumite
    1,000 Posts Third Anniversary Name Dropper
    edited 27 October 2022 at 10:50PM
    I will let you know about QIB, in February when it pays out. B)
    Look at https://moneyfacts.co.uk/
    Untick the box top right.
    Select fixed rate bonds, then 1, 2, 3 years etc for best rate.
    Then go direct and see if they do monthly payout etc.
    I think getting a smart phone or tablet might be a good idea.
    Love my iPad as uses Face ID so don’t have to keep remembering passwords.

    Gatehouse bank 5% 3 years fixed. Paid monthly.
    https://gatehousebank.com/downloads/3-Year-Fixed-Term-Woodland-Saver-Key-Product-Information.pdf
  • FLAMPARD said:
    Hello I took one of these bonds out last year. Does the interest get paid annually or don’t you see and growth in your balance while year 5 please
    Check the Key Account Info for the bond you took out. I had a 2 year bond with QIB that matured in August, and it delayed paying all the profit until maturity. The wording for mine was:
    "Profit is payable on maturity"
    and it had a specific clarification:
    "This savings account does NOT operate on the basis that you can end the fixed term of your savings account prematurely and pay a fee to withdraw your funds sooner"
    which is what HMRC uses as a test for whether tax is due annually or only on maturity (if you can pay a fee for early withdrawal, then any profit shown added to the total worth of a bond is treated as being taxable when it's added). Your 5 year bond may be different from a 2 year one, of course.
  • GeoffTF
    GeoffTF Posts: 2,022 Forumite
    1,000 Posts Third Anniversary Photogenic Name Dropper
    edited 29 October 2022 at 9:07AM
    EthicsGradient said:

    "This savings account does NOT operate on the basis that you can end the fixed term of your savings account prematurely and pay a fee to withdraw your funds sooner"
    which is what HMRC uses as a test for whether tax is due annually or only on maturity (if you can pay a fee for early withdrawal, then any profit shown added to the total worth of a bond is treated as being taxable when it's added). Your 5 year bond may be different from a 2 year one, of course.
    No, that is not true. My next door neighbour it is tax adviser. I asked her about this matter, after being worried by the HMRC internal manual. In practice is your choice, and does not depend on whether you were offered the option to withdraw your funds sooner. HMRC is happy provided you pay the tax the tax. You can declare the interest each year and be taxed on it annually. Alternatively, you can declare all the interest on maturity, and be taxed on it then. She said that her clients usually paid on maturity.

    My two year QIB bond paid out a few months ago. The information given left it unclear when the tax was payable. Hence my question. I declared the interest on maturity.
  • GeoffTF said:
    EthicsGradient said:

    "This savings account does NOT operate on the basis that you can end the fixed term of your savings account prematurely and pay a fee to withdraw your funds sooner"
    which is what HMRC uses as a test for whether tax is due annually or only on maturity (if you can pay a fee for early withdrawal, then any profit shown added to the total worth of a bond is treated as being taxable when it's added). Your 5 year bond may be different from a 2 year one, of course.
    No, that is not true. My next door neighbour it is tax adviser. I asked her about this matter, after being worried by the HMRC internal manual. In practice is your choice, and does not depend on whether you were offered the option to withdraw your funds sooner. HMRC is happy provided you pay the tax the tax. You can declare the interest each year and be taxed on it annually. Alternatively, you can declare all the interest on maturity, and be taxed on it then. She said that her clients usually paid on maturity.

    My two year QIB bond paid out a few months ago. The information given left it unclear when the tax was payable. Hence my question. I declared the interest on maturity.
    Well, it seems odd that, since the internal manual looks pretty clear

    "Sam entered into a five year fixed-term bond on 6 April 2017. The bond credits interest to Sam’s account annually on the 31 December. Sam can only gain access to both the annual interest and the principal in advance of 5 April 2022 if a penalty is paid for early access.

    Since the terms and conditions of the bond allow Sam to draw on the funds, although with a penalty, the interest arises and is taxable each year as it is credited.

    If the terms and conditions of the bond did not allow access until maturity, the interest would arise and be taxed at that point."

    https://www.gov.uk/hmrc-internal-manuals/savings-and-investment-manual/saim2440

    that a tax adviser would then say "they don't care". With all due respect to her, I'd rather take what HMRC says in writing about HMRC's position than hers, expressed as friendly word-of-mouth advice to a neighbour (was she going from an actual case in which the year(s) tax was due made a significant difference?). If they do say somewhere, in writing, "it's OK as long as it's all declared at some time", that would be different.

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