The Top Fixed Interest Savings Discussion Area

k12479

Patr100 said:
...though calls out the semantic slight of hand that sharia accounts attempt to distinguish themselves under.

Not it doesn't.

Patr100

k12479 said:

Patr100 said:
...though calls out the semantic slight of hand that sharia accounts attempt to distinguish themselves under.

Not it doesn't.

Tell that to HMRC then.

CuparLad

Patr100 said:

k12479 said:

Patr100 said:
...though calls out the semantic slight of hand that sharia accounts attempt to distinguish themselves under.

Not it doesn't.

Tell that to HMRC then.

I think you may be missing the point that k12479 is making.

Regular interest-bearing accounts give you money in return for lending the financial institution your money. It's a percentage-based calculation.

Sharia accounts invest your money in a way that generates a profit e.g. by buying something at one price and selling it at a higher price. That profit (or a proportion thereof) is shared amongst those that have provided the original funds. The profit is normally "expected" but not guaranteed, unlike an interest rate, which is guaranteed (but may change). Sharia accounts do not pay interest, nor is the profit generated from interest-bearing activities.

For the purposes of the Income Tax Act 2007, a Sharia account is considered an "alternative finance arrangement" and the Act sets out the tax treatment of some of the most commonly used AFAs, which generate an "alternative finance return". For individuals, HMRC treat an alternative finance return in the same way as interest and thus Income Tax is due once the relevant thresholds are passed.

HMRC treat Interest and Sharia profits in the same way, but it does not imply they are the same thing (which I believe is the point that k12479 was making).

molerat

SeriousHoax said:

murmeltier said:

Contador38 said:

Marcus 1 Y Fixed @ 5,25% no longer available.

If one has opened such account recently, there is a 14 days window to add more funds.

Still available for existing customers, managed to open one when logged in just now.

I opened mine this morning as I had a six month fix ending.

Opened one a couple of hours ago so still available for existing customers.

pw23

For a one year fix account, has anyone seen better than 5.3%? Just about to commit and had to check first.

BigBlueSky

pw23 said:

For a one year fix account, has anyone seen better than 5.3%? Just about to commit and had to check first.

AlRayan are offering 5.5% for 1 year fixed.

jaypers

After dropping to 4.95% Charter have just increased their 1 Year Fixed offering to 5.11% AER (4.99% Gross). An interesting move. 

becky_rtw

Quick question. We now have a lot of fixed term accounts and also have a tax bill coming up in 2025 (not for interest but capital gains).

I'd quite like a software similar to Microsoft money where we can do cash flow analysis. As some of our account mature we will need to spend them to live off and for one off spend. 

Any of you lovely people use anything that you recommend?

We need to track monthly spending, cash flow and upcoming liabilities. I know we can do it on a spreadsheet but wanted something a bit more visual/easier. 

Bazzalona13295

creo said:

I messed up and didn't think rates would fall as quickly as they did.

What would people go for 1 year fixed isa wise? It feels like shawbrook is my only choice as I want to add more funds after the initial deposit.

I've got a Shawbrook ISA and as you say you can add to it which is what I'm trying to do, think its 5.83% though couldn't tell you if that rate is still available, I doubt it tbh.

janusdesign

creo said:

I messed up and didn't think rates would fall as quickly as they did.

What would people go for 1 year fixed isa wise? It feels like shawbrook is my only choice as I want to add more funds after the initial deposit.

there is an ISA discussion forum in the link below - you might get more responses in there...

ISAs & tax-free savings — MoneySavingExpert Forum

if you have, or can get, a Virgin current account, you would be able to get their 5.25% fixed ISA - you can continue to add funds into it until 30 days after the Issue is no longer available.