The Top Fixed Interest Savings Discussion Area

changearound1

andyhicks88 said:

So If I took out a fix today that paid interest monthly, only the amount of interest during the remainder of this tax year will contribute towards this years allowance, yeh?

Correct.

Band7

CheekyMikey said:

Band7 said:

CheekyMikey said:

M4rtyman said:

Am I correct in saying, that the 5 year Fixed at Gatehouse, can be paid out monthly, and to your linked account? So even though my initial investment is tied up for five years, I can spend the interest when ever I want? I quite like the idea of having that guaranteed extra income for the next five years

I have opened a Gatehouse 5 year fixed for exactly this reason…£75k will generate a £300 a month income which will be very useful in topping up my db pension. I wasn’t able to find another product which allows you to take out monthly interest…

Lots and lots of other monthlies but none with quite as good a rate at Gatehouse. Not at the moment, anyway.

Yes, they pay interest monthly but as far as I can tell from their websites, they do not allow you to withdraw the interest monthly. I only looked at the ones paying the better rates but only Gatehouse allow monthly withdrawals of interest to a nominated account..

I don‘t believe this. The entire point of monthly interest on fixed rate accounts is to pay an income to a different account, usually the nominated account. A random spot test confirms this

kaMelo

Band7 said:

CheekyMikey said:

Band7 said:

CheekyMikey said:

M4rtyman said:

Am I correct in saying, that the 5 year Fixed at Gatehouse, can be paid out monthly, and to your linked account? So even though my initial investment is tied up for five years, I can spend the interest when ever I want? I quite like the idea of having that guaranteed extra income for the next five years

I have opened a Gatehouse 5 year fixed for exactly this reason…£75k will generate a £300 a month income which will be very useful in topping up my db pension. I wasn’t able to find another product which allows you to take out monthly interest…

Lots and lots of other monthlies but none with quite as good a rate at Gatehouse. Not at the moment, anyway.

Yes, they pay interest monthly but as far as I can tell from their websites, they do not allow you to withdraw the interest monthly. I only looked at the ones paying the better rates but only Gatehouse allow monthly withdrawals of interest to a nominated account..

I don‘t believe this. The entire point of monthly interest on fixed rate accounts is to pay an income to a different account, usually the nominated account. A random spot test confirms this

I agree, every fixed term account with monthly interest option will allow paying the interest away to another linked account, in some cases it's mandatory to pay the interest away.


Edited to add, just done a check and it seems ZOPA are unique as they do not allow paying the interest away to another account. 
This leads me to the question what's the point in offering monthly interest ?

janusd

t1redmonkey said:

M4rtyman said:

Am I correct in saying, that the 5 year Fixed at Gatehouse, can be paid out monthly, and to your linked account? So even though my initial investment is tied up for five years, I can spend the interest when ever I want? I quite like the idea of having that guaranteed extra income for the next five years

Correct, you can indicate what happens with the interest during the application phase, either have it paid into the same bond, or paid to an external account.

just to add that with Gatehouse, you can amend your interest options at any time in the fixed-term period - I have a 1-Yr fix that I think was originally paying annually back into the Gatehouse account, but from the website, you can amend it to either monthly/annually and/or keep it in the account or pay it out to a nominated account... it's now paying interest monthly back to my nominated account.

note that not all fixed-rate accounts will do this - some (most?) will commit you at the application phase and you cannot change it.

CheekyMikey said:

Band7 said:

CheekyMikey said:

M4rtyman said:

Am I correct in saying, that the 5 year Fixed at Gatehouse, can be paid out monthly, and to your linked account? So even though my initial investment is tied up for five years, I can spend the interest when ever I want? I quite like the idea of having that guaranteed extra income for the next five years

I have opened a Gatehouse 5 year fixed for exactly this reason…£75k will generate a £300 a month income which will be very useful in topping up my db pension. I wasn’t able to find another product which allows you to take out monthly interest…

Lots and lots of other monthlies but none with quite as good a rate at Gatehouse. Not at the moment, anyway.

Yes, they pay interest monthly but as far as I can tell from their websites, they do not allow you to withdraw the interest monthly. I only looked at the ones paying the better rates but only Gatehouse allow monthly withdrawals of interest to a nominated account..

Vanquis will also allow you to have the interest paid back into either the account itself or a nominated account (monthly or annually)... Tesco I think insist on it being paid to a nominated account.

steveksullivan

kaMelo said:

Band7 said:

CheekyMikey said:

Band7 said:

CheekyMikey said:

M4rtyman said:

Am I correct in saying, that the 5 year Fixed at Gatehouse, can be paid out monthly, and to your linked account? So even though my initial investment is tied up for five years, I can spend the interest when ever I want? I quite like the idea of having that guaranteed extra income for the next five years

I have opened a Gatehouse 5 year fixed for exactly this reason…£75k will generate a £300 a month income which will be very useful in topping up my db pension. I wasn’t able to find another product which allows you to take out monthly interest…

Lots and lots of other monthlies but none with quite as good a rate at Gatehouse. Not at the moment, anyway.

Yes, they pay interest monthly but as far as I can tell from their websites, they do not allow you to withdraw the interest monthly. I only looked at the ones paying the better rates but only Gatehouse allow monthly withdrawals of interest to a nominated account..

I don‘t believe this. The entire point of monthly interest on fixed rate accounts is to pay an income to a different account, usually the nominated account. A random spot test confirms this

I agree, every fixed term account with monthly interest option will allow paying the interest away to another linked account, in some cases it's mandatory to pay the interest away.


Edited to add, just done a check and it seems ZOPA are unique as they do not allow paying the interest away to another account. 
This leads me to the question what's the point in offering monthly interest ?

They are not 'unique' by any means .....

As frequently mentioned on here the other reason for offering monthly interest is to spread the interest 'income' across tax years if required ....

CheekyMikey

Band7 said:

CheekyMikey said:

Band7 said:

CheekyMikey said:

M4rtyman said:

Am I correct in saying, that the 5 year Fixed at Gatehouse, can be paid out monthly, and to your linked account? So even though my initial investment is tied up for five years, I can spend the interest when ever I want? I quite like the idea of having that guaranteed extra income for the next five years

I have opened a Gatehouse 5 year fixed for exactly this reason…£75k will generate a £300 a month income which will be very useful in topping up my db pension. I wasn’t able to find another product which allows you to take out monthly interest…

Lots and lots of other monthlies but none with quite as good a rate at Gatehouse. Not at the moment, anyway.

Yes, they pay interest monthly but as far as I can tell from their websites, they do not allow you to withdraw the interest monthly. I only looked at the ones paying the better rates but only Gatehouse allow monthly withdrawals of interest to a nominated account..

I don‘t believe this. The entire point of monthly interest on fixed rate accounts is to pay an income to a different account, usually the nominated account. A random spot test confirms this

I must be misunderstanding when they say no withdrawals allowed…although Vanquis and Tesco seem to be the only other ones who allow monthly interest to nominated accounts if I read it correctly

kaMelo

steveksullivan said:

kaMelo said:

Band7 said:

CheekyMikey said:

Band7 said:

CheekyMikey said:

M4rtyman said:

Am I correct in saying, that the 5 year Fixed at Gatehouse, can be paid out monthly, and to your linked account? So even though my initial investment is tied up for five years, I can spend the interest when ever I want? I quite like the idea of having that guaranteed extra income for the next five years

I have opened a Gatehouse 5 year fixed for exactly this reason…£75k will generate a £300 a month income which will be very useful in topping up my db pension. I wasn’t able to find another product which allows you to take out monthly interest…

Lots and lots of other monthlies but none with quite as good a rate at Gatehouse. Not at the moment, anyway.

Yes, they pay interest monthly but as far as I can tell from their websites, they do not allow you to withdraw the interest monthly. I only looked at the ones paying the better rates but only Gatehouse allow monthly withdrawals of interest to a nominated account..

I don‘t believe this. The entire point of monthly interest on fixed rate accounts is to pay an income to a different account, usually the nominated account. A random spot test confirms this

I agree, every fixed term account with monthly interest option will allow paying the interest away to another linked account, in some cases it's mandatory to pay the interest away.


Edited to add, just done a check and it seems ZOPA are unique as they do not allow paying the interest away to another account. 
This leads me to the question what's the point in offering monthly interest ?

They are not 'unique' by any means .....

As frequently mentioned on here the other reason for offering monthly interest is to spread the interest 'income' across tax years if required ....

Zopa are unique in not allowing the interest to be paid away, every other account provider offering a monthly interest option on a fixed term product allows that interest to be paid away to another account, in some cases it's a requirement.
 I was not talking about tax in any way.

janusd

am I right in thinking that Gatehouse fixed-rate accounts need to be funded by "new" money from a nominated account and you can't transfer / fund from another Gatehouse account ?

t1redmonkey

janusdesign said:

am I right in thinking that Gatehouse fixed-rate accounts need to be funded by "new" money from a nominated account and you can't transfer / fund from another Gatehouse account ?

Yes doesn't seem to be a way to move money in an easy access account with them across to a fixed rate account unfortunately.

t1redmonkey

janusdesign said:

t1redmonkey said:

M4rtyman said:

Am I correct in saying, that the 5 year Fixed at Gatehouse, can be paid out monthly, and to your linked account? So even though my initial investment is tied up for five years, I can spend the interest when ever I want? I quite like the idea of having that guaranteed extra income for the next five years

Correct, you can indicate what happens with the interest during the application phase, either have it paid into the same bond, or paid to an external account.

just to add that with Gatehouse, you can amend your interest options at any time in the fixed-term period - I have a 1-Yr fix that I think was originally paying annually back into the Gatehouse account, but from the website, you can amend it to either monthly/annually and/or keep it in the account or pay it out to a nominated account... it's now paying interest monthly back to my nominated account.

note that not all fixed-rate accounts will do this - some (most?) will commit you at the application phase and you cannot change it.

That's very handy to know, thanks