The Top Fixed Interest Savings Discussion Area

dgpur

Oxbury are now offering, for existing customers only:

4.75% - 1 yr
4.80% - 2 yr

Patr100

I've already locked later last year when rates were about the place they are getting now again.
I still don't think the long term trajectory is much higher so this is a second chance if you want a decent income, specially monthly.

gele

Just to clarify, now 1 year fixes are around the 4.75% mark is it still always better, if eligible, to open the Coventry 4.4% ISA than a bond [as a 20% rate taxpayer]
Thanks.

Steve_xx

gele said:

Just to clarify, now 1 year fixes are around the 4.75% mark is it still always better, if eligible, to open the Coventry 4.4% ISA than a bond [as a 20% rate taxpayer]
Thanks.

Well 4.75 minus 20% = 3.8%. so I guess it's a yes.

gele

Thanks. Wasn't sure because the £1000 in interest allowed before tax was confusing me.

allegro120

gele said:

Just to clarify, now 1 year fixes are around the 4.75% mark is it still always better, if eligible, to open the Coventry 4.4% ISA than a bond [as a 20% rate taxpayer]
Thanks.

I grabbed Coventry 4.4% ISA as soon as it was offered, makes perfect sense tax-wise. I'm not ready for bonds yet, want to see BoE stop increasing the rate first.

Steve_xx

gele said:

Thanks. Wasn't sure because the £1000 in interest allowed before tax was confusing me.

Well yes, that's worth considering I guess. So then, if you put 21k into the 4.75% account, that would just about use up your £1000 personal allowance. It depends how much money you have saved.

Harryo

Steve_xx said:

Well yes, that's worth considering I guess. So then, if you put 21k into the 4.75% account, that would just about use up your £1000 personal allowance. It depends how much money you have saved.

And also how much income you have. If it is between £12750 and £17500 then you can earn up to £5000 interest tax free at best from the additional Starting Savings Rate. If it is below £12750 then you can make use of your normal Personal Allowance.

Steve_xx

Harryo said:

Steve_xx said:

Well yes, that's worth considering I guess. So then, if you put 21k into the 4.75% account, that would just about use up your £1000 personal allowance. It depends how much money you have saved.

And also how much income you have. If it is between £12750 and £17500 then you can earn up to £5000 interest tax free at best from the additional Starting Savings Rate. If it is below £12750 then you can make use of your normal Personal Allowance.

I think, that to be able to take advantage of the 0% starting rate, that your income (from work and/or pensions) needs to be below £12570. 

Bigwheels1111

Steve_xx said:

Harryo said:

Steve_xx said:

Well yes, that's worth considering I guess. So then, if you put 21k into the 4.75% account, that would just about use up your £1000 personal allowance. It depends how much money you have saved.

And also how much income you have. If it is between £12750 and £17500 then you can earn up to £5000 interest tax free at best from the additional Starting Savings Rate. If it is below £12750 then you can make use of your normal Personal Allowance.

I think, that to be able to take advantage of the 5% starting rate, that your income (from work and/or pensions) needs to be below £12570. 

The way I read it is that if you earn say £14k it deducts £1,430 from the starter rate leaving £3,570.
I could be wrong.