The Top Fixed Interest Savings Discussion Area

wmb194

CaptainWales said:

Ah, ok. So it only counts as taxable in that year if you can access it? 

In theory. There are other threads discussing the taxation of fixed rate savings bonds but my suggestion would be to avoid bonds like these and prefer ones that will pay interest away either monthly or annually. It saves potential headaches when dealing with HMRC as it seems many/most providers will report the interest to HMRC annually whether or not it is accessible.

Dazed_and_C0nfused

wmb194 said:

CaptainWales said:

Beehive money 2 year fixed @6.1% - does anybody know if interest paid at muturity? MSE says so but looking at t&c's its unclear whether interest at end of year 1 counts towards that tax years allowance. 

According to the terms there's no option to have it paid away so it'll count as 'inaccessible' and so all the interest will (should...) count as arising at the end of the term.

However as the interest is paid into the account annually don't be surprised if the interest is taxed like that i.e. interest paid into the account on 31 July 2024 being income of 2024-25 tax year and 31 July 2025 income of the 2025-26 tax year.

Of course if you are filing a Self Assessment return you can declare the interest in the tax year you believe to be correct.

CaptainWales

Is there a 2 year fixed saving that pays interest at maturity? I have a 1 year bond which pays interest annually and could do with not having the interest from a 2 year account paid in the same tax year

bristolleedsfan

CaptainWales said:

Is there a 2 year fixed saving that pays interest at maturity? I have a 1 year bond which pays interest annually and could do with not having the interest from a 2 year account paid in the same tax year

Look at Moneyfacts best buy tables and see which account pay interest at Maturity.

I put phrase 2 year fixed interest paid maturity into google search, this was first result that I saw. 

https://www.castletrust.co.uk/savings/rates/apply-now/fixed/2-years/2-year-fixed-rate-e-saver---interest-paid-at-maturity?deposit=1000&total=9

Doctor_Who

CaptainWales said:

Is there a 2 year fixed saving that pays interest at maturity? I have a 1 year bond which pays interest annually and could do with not having the interest from a 2 year account paid in the same tax year

Have a look here, you'll need to scroll down the page to see accounts paying at maturity:

https://moneyfactscompare.co.uk/savings-accounts/2-year-fixed-rate-bonds/?quick-links-first=false

BooJewels

@CaptainWales - if you're looking at Money Facts Compare, ensure that you read the T&C of the individual account on its own web site too, as I've found the Money Facts site to sometimes be inaccurate about what it displays for interest payment details.  It can even vary between screens of search results.

CaptainWales

wmb194 said:

CaptainWales said:

Ah, ok. So it only counts as taxable in that year if you can access it? 

In theory. There are other threads discussing the taxation of fixed rate savings bonds but my suggestion would be to avoid bonds like these and prefer ones that will pay interest away either monthly or annually. It saves potential headaches when dealing with HMRC as it seems many/most providers will report the interest to HMRC annually whether or not it is accessible.

Can somebody post a link to these discussion please, i cant find it 

Doctor_Who

CaptainWales said:

wmb194 said:

CaptainWales said:

Ah, ok. So it only counts as taxable in that year if you can access it? 

In theory. There are other threads discussing the taxation of fixed rate savings bonds but my suggestion would be to avoid bonds like these and prefer ones that will pay interest away either monthly or annually. It saves potential headaches when dealing with HMRC as it seems many/most providers will report the interest to HMRC annually whether or not it is accessible.

Can somebody post a link to these discussion please, i cant find it 

Here's the most recent one I've read:

https://forums.moneysavingexpert.com/discussion/6461666/interest-taxed-at-maturity-unfair/p1

tunde10

My Vanquis 6.15% is also showing Annualised Gross Interest of 5.98%.

I have emailed them, not sure what these companies are playing at.

n3ophyte

tunde10 said:

My Vanquis 6.15% is also showing Annualised Gross Interest of 5.98%.

I have emailed them, not sure what these companies are playing at.

That sounds right. 5.98% Gross is 6.15% AER.