The Top Fixed Interest Savings Discussion Area

minority

ColdIron said:

minority said:

I am on the higher tax bracket so I believe I get a low £500 profit on this.

How about a pension contribution? Instead of paying tax you would get a tax rebate of tax already paid and may even  put you back to basic rate. A no brainer for many

I assume I need to do this via my employer to get my salary down.  I'm in Scotland and this mean popping alot of money into it as I am paid fair bit over 42k limit here.

I plan to dump another 20k into isa next April so I assume I could lower the tax burden by getting monthly interest payment so it spread over two tax years.

I am hesitant to put it into pension as I have double my current sum in isa stock share at moment and wanted to use "safe" high interests to counter volatility in the investment market at moment.

I am debt free as well but always think I need access to my money incase lol

subjecttocontract

Premium Bonds are tax free.

ColdIron

minority said:

ColdIron said:

minority said:

I am on the higher tax bracket so I believe I get a low £500 profit on this.

How about a pension contribution? Instead of paying tax you would get a tax rebate of tax already paid and may even  put you back to basic rate. A no brainer for many

I assume I need to do this via my employer to get my salary down.  I'm in Scotland and this mean popping alot of money into it as I am paid fair bit over 42k limit here.

Not necessarily, you could open a SIPP but most people would do it via their employer especially if they offer Salary Sacrifice to get a break on NI

The Scottish threshold is £43,663 but it doesn't have to be all or nothing. Perhaps a pension contribution to get the 40% tax relief and the remainder elsewhere

I am hesitant to put it into pension as I have double my current sum in isa stock share at moment

That sounds the wrong way round

and wanted to use "safe" high interests to counter volatility in the investment market at moment.

It would certainly counter volatility but very likely return less in the long run and you would be paying £400 in every £1,000 instead of getting that £400 back

I am debt free as well but always think I need access to my money incase lol

Do you really need access to it all? Your pension sounds low. How old are you?

Guess another question if it Joint account does it have the higher tax person limit or person on 20% bracket?

It's 50/50. You might think of putting some money into your partner's name to pay less tax personally and make use of their allowance(s)

Doctor_Who

minority said:

ColdIron said:

minority said:

I am on the higher tax bracket so I believe I get a low £500 profit on this.

How about a pension contribution? Instead of paying tax you would get a tax rebate of tax already paid and may even  put you back to basic rate. A no brainer for many

I assume I need to do this via my employer to get my salary down.  I'm in Scotland and this mean popping alot of money into it as I am paid fair bit over 42k limit here.

I plan to dump another 20k into isa next April so I assume I could lower the tax burden by getting monthly interest payment so it spread over two tax years.

I am hesitant to put it into pension as I have double my current sum in isa stock share at moment and wanted to use "safe" high interests to counter volatility in the investment market at moment.

I am debt free as well but always think I need access to my money incase lol

If you want to regain the £1000 PSA remember that this is calculated using the UK higher tax band of £50,270 and not the Scottish higher tax band of £43,663.

Also, it's 42% tax relief in Scotland for higher rate relief pension contributions.....

https://www.litrg.org.uk/tax-guides/tax-basics/what-tax-rates-apply-me#toc-how-does-the-personal-savings-allowance-work-

gt94sss2

minority said:

does the bank take the tax I am due the goverment or do I have to do a self assessment.  I am on the higher tax bracket so I believe I get a low £500 profit on this.

Hate self assessment finally stop having to do them and dread having do it again lol.

Guess another question if it Joint account does it have the higher tax person limit or person on 20% bracket?

Banks do not automatically deduct interest but it doesn't mean you need to fill in a self assessment return. The banks will report the interest paid to HMRC who will then adjust your tax code instead.

On joint accounts, HMRC treat 50% of the interest belonging to each person and charged at that person's tax bracket 

susanann_2

When Vanquis Bank increased their 1yr bond to 6.15% AER/ 5.98 Monthly Gross back in mid July a few of us applied for it but then shelved it as they wanted all sorts of ID. This morning I’ve received paperwork to say they have opened the account even though I have not sent any ID they said they needed. This is over the 30 days from application date which they say it has to be funded by. Has anyone else had this happen with Vanquis,  I wonder if I have a case to request time to fund it. 

Ifts

susanann_2 said:

I wonder if I have a case to request time to fund it. 

It's certainly worth asking, I would, at worse they can only say no.

soulsaver

Ifts said:

susanann_2 said:

I wonder if I have a case to request time to fund it. 

It's certainly worth asking, I would, at worse they can only say no.

They can also say 'no' when you want to withdraw funds... and ask for the proof of ID then.

ETA - speculation, not my Vanquis experience.. but experience I have, um.. experienced.

DjangoUnchained

that level of incompetence would put me off putting money in with them.

thegreenone

First time with Vanquis and I haven't had any request for ID. 

I've put a chunk in and waiting for another personal bill to come before I add more, if I'm in time.