The Top Fixed Interest Savings Discussion Area

Mr_blibby

Vanquis increased their 1,2 and 3 year bonds to 4.95% this am. One of the few that have 14 day cooling off period, so if you've placed funds in there very recently, still the chance to get them upgraded to the higher rates

t1redmonkey

Vanquis are good, opened my fixed bonds with them in November last year - you can change interest from monthly to annual (or vice versa) at any time, and also change whether it gets put back into the bond or is paid out to an external bank account.

kidwell25

TiVo_Lad said:

HMRC don't care about what options you had, they only care when the taxable event takes place. If you get paid interest annually, but you can't access it, it doesn't count in that tax year.

Someone I'm sure will correct me if I'm wrong, but my understanding was that HMRC act on what the banks and building societies send them. So if the bank tells you that they will be applying the interest and reporting this to HMRC annually (even if you can't access that interest until the end of the term), that is what HMRC will act on.

alternate

With compounded interest remember you want to be saving under 70k per account (depending on the rate) on a 5 year term - other wise you will be over the 85k protection limit by the end of the term.

alternate

TiVo_Lad said:

HMRC don't care about what options you had, they only care when the taxable event takes place. If you get paid interest annually, but you can't access it, it doesn't count in that tax year.

This discussion has been had plenty.  Make sure you confirm with each bank when they report the tax, even if you can not access it - if you can get a straight answer - or you might find yourself caught out.

BooJewels

t1redmonkey said:

Vanquis are good, opened my fixed bonds with them in November last year - you can change interest from monthly to annual (or vice versa) at any time, and also change whether it gets put back into the bond or is paid out to an external bank account.

I was just coming to ask this.  Do they definitely pay out monthly to your nominated account?  I've read the T&C etc but it uses woolly wording like "paid to you" - it doesn't distinguish between paid back into the fix, or paid outside it.  I'm in the market at the end of the month for some fixes and one of my personal criteria is monthly paid out externally.   Obviously the issue might have closed by then.

t1redmonkey

BooJewels said:

t1redmonkey said:

Vanquis are good, opened my fixed bonds with them in November last year - you can change interest from monthly to annual (or vice versa) at any time, and also change whether it gets put back into the bond or is paid out to an external bank account.

I was just coming to ask this.  Do they definitely pay out monthly to your nominated account?  I've read the T&C etc but it uses woolly wording like "paid to you" - it doesn't distinguish between paid back into the fix, or paid outside it.  I'm in the market at the end of the month for some fixes and one of my personal criteria is monthly paid out externally.   Obviously the issue might have closed by then.

Yep, I opt to have mine paid monthly into an external bank account (initially had it reinvested for the first month but changed it over to pay out instead so I know the functionality works).  This is how it appears in the manage your account section, quite easy to change your preference:

BooJewels

Ah, thank you kindly @t1redmonkey - much appreciated. A lot of accounts that look interesting initially either don't pay monthly interest, or if they do, don't pay it externally.  It's just my personal preference.   Thank you for the clarification. 

gesdt50

Hi is says with Vanquis that only 1 deposit is allowed and no more funds can be added. If I want to deposit a few pounds to check if they will accept put in on the same day and not hold over the weekend like some banks have done in the past  - will I be able to add no more? If going by the T&C's this would be the case?

t1redmonkey

gesdt50 said:

Hi is says with Vanquis that only 1 deposit is allowed and no more funds can be added. If I want to deposit a few pounds to check if they will accept put in on the same day and not hold over the weekend like some banks have done in the past  - will I be able to add no more? If going by the T&C's this would be the case?

Well minimum deposit is £1000 so I don't think that would work.  You could of course just wait until Monday if your concern is around funds not arriving before the weekend.