The Top Fixed Interest Savings Discussion Area

andyhicks88

I wonder if I set up one of their easy access accounts I would then get access to the fixed rate accounts?

happybagger

Still got the 2 yr ISA available

refluxer

andyhicks88 said:

I wonder if I set up one of their easy access accounts I would then get access to the fixed rate accounts?

Possibly, but they don't have one at the moment and, aside from the 2 year fixed rate ISA, the other accounts they do currently offer pay poor rates.

Rudyson

andyhicks88 said:

Have Kent Reliance pulled their fixed savers as I don't see them on their website? Though there is a message that comes up about exclusive fixed rate accounts for existing customers?

The 1 and 2 year fixed rates are showing as available when logged in, so it looks as if existing members can still get them.

newuser2011

Hello all, am I right in thinking of all interest is paid at the end of a 2 year fixed term, that interest counts only towards the tax free allowance for that single tax year (and I can’t split and spread over two years as the interest was earned over two years)? Thank you!

soulsaver

refluxer said:

andyhicks88 said:

I wonder if I set up one of their easy access accounts I would then get access to the fixed rate accounts?

Possibly, but they don't have one at the moment and, aside from the 2 year fixed rate ISA, the other accounts they do currently offer pay poor rates.

Site's down for maitenance 'until Sunday' !

Steve_xx

newuser2011 said:

Hello all, am I right in thinking of all interest is paid at the end of a 2 year fixed term, that interest counts only towards the tax free allowance for that single tax year (and I can’t split and spread over two years as the interest was earned over two years)? Thank you!

The tax is liable in the tax year in which you received payment of interest into the account.

Patr100

Steve_xx said:

newuser2011 said:

Hello all, am I right in thinking of all interest is paid at the end of a 2 year fixed term, that interest counts only towards the tax free allowance for that single tax year (and I can’t split and spread over two years as the interest was earned over two years)? Thank you!

The tax is liable in the tax year in which you received payment of interest into the account.

If you can't access it, you don't pay tax on it in that year.

 Interest becomes taxable at the point it’s made available to you to withdraw. For most fixed rate bonds, although interest may be earned and credited to your balance annually, interest is actually paid out at maturity so the interest earned will fall to be taxed in the tax year in which the product matures

https://www.willisowen.co.uk/deposit/tax-on-your-savings

Steve_xx

Patr100 said:

Steve_xx said:

newuser2011 said:

Hello all, am I right in thinking of all interest is paid at the end of a 2 year fixed term, that interest counts only towards the tax free allowance for that single tax year (and I can’t split and spread over two years as the interest was earned over two years)? Thank you!

The tax is liable in the tax year in which you received payment of interest into the account.

If you can't access it, you don't pay tax on it in that year.

 Interest becomes taxable at the point it’s made available to you to withdraw. For most fixed rate bonds, although interest may be earned and credited to your balance annually, interest is actually paid out at maturity so the interest earned will fall to be taxed in the tax year in which the product matures

https://www.willisowen.co.uk/deposit/tax-on-your-savings

Well spotted. I stand corrected!

wmb194

Patr100 said:

Steve_xx said:

newuser2011 said:

Hello all, am I right in thinking of all interest is paid at the end of a 2 year fixed term, that interest counts only towards the tax free allowance for that single tax year (and I can’t split and spread over two years as the interest was earned over two years)? Thank you!

The tax is liable in the tax year in which you received payment of interest into the account.

If you can't access it, you don't pay tax on it in that year.

 Interest becomes taxable at the point it’s made available to you to withdraw. For most fixed rate bonds, although interest may be earned and credited to your balance annually, interest is actually paid out at maturity so the interest earned will fall to be taxed in the tax year in which the product matures

https://www.willisowen.co.uk/deposit/tax-on-your-savings

But it depends on whether the bond gave you the option to have the interest paid away during its term. If the option was given to you but you chose to have it accrue in the account then the income still arises in the year in which it was credited to the account.

It would help if people actually mentioned the bonds they're looking at. If it's the new Nationwide (NW) online bonds where, for some reason, NW has now decided that interest cannot be paid out during the term then in theory, yes, all taxed in the final year. However, posters have reported that they asked NW about this and NW says that it will report the interest to HMRC annually. Someone at NW really hasn't thought this through...

*The statement from Willsowen is incorrect - "most" fixed rate bonds will give you the option to have interest paid away every year, in fact in my experience most insist on it.