The Top Fixed Interest Savings Discussion Area

peter021072

The 5.25% Fixed rate from Secure Trust is interesting because it lasts slightly longer than a year, maturing on the 9th May 25.  It's also got a 30 day window. However in the T&C it states:

Gross AER Interest is calculated daily and applied on 31 December and on maturity. You can choose to have your interest added to your Fixed Rate Bond or paid away to your Nominated Account.

So assuming the option to have interest added rather than paid out is chosen, does this mean that some the interest will be treated as being in FY 24/25 and some in 25/26?  It would be useful if T&C from these products made this clear because with interest rates being slightly higher than they have been, some depositors may accidentally run into higher tax bands. 

A._Badger

HTB seems to have pulled its two year 5.06% fixed rate offer. Fortunately for me, I got in just under the wire, last night.

slinger2

EthicsGradient said:

The Oxbury 1 year fixed term account (5.26%) no longer appears on their page for non-members; and there, the 2 year rate has gone done to 5.07% (still top of MSE's 2 year list, but MoneyFactsCompare shows "iFast Global Bank" (never heard of them) at 5.10%).

Yes, they've trimmed their rates 5.28 down to 5.23, 5.11 down to 5.07. Can't quite see the logic of the "Existing Customer" restriction for the 1 year fixed. Means you have to open something else first.

jaypers

Charter 1 Year Fixed has dropped to 5.11% (4.99% Gross)

Notepad_Phil

peter021072 said:

The 5.25% Fixed rate from Secure Trust is interesting because it lasts slightly longer than a year, maturing on the 9th May 25.  It's also got a 30 day window. However in the T&C it states:

Gross AER Interest is calculated daily and applied on 31 December and on maturity. You can choose to have your interest added to your Fixed Rate Bond or paid away to your Nominated Account.

So assuming the option to have interest added rather than paid out is chosen, does this mean that some the interest will be treated as being in FY 24/25 and some in 25/26?  It would be useful if T&C from these products made this clear because with interest rates being slightly higher than they have been, some depositors may accidentally run into higher tax bands. 

If you pay the interest away then the interest will definitely fall into the two tax years.

But if you keep it in the account, and the t&cs say that you cannot access the interest under any circumstance until the account matures, then 'officially' all the interest would fall into the 25/26 tax year, but it's likely that the HMRC won't know this as it's likely that Secure Trust will send interest details to the HMRC on the 31st December and at maturity, so in those circumstances it's likely that unless you prompt the HMRC they would count it as interest in two tax years.

A lot of use of 'likely' in the paragraph above, but that's the world we live in with fixed term accounts where you cannot access the money within and t&cs are not explicit and interest goes across multiple tax years and you are keeping the interest in the account - if you want to know definitely then I would pay the interest away.

InvesterJones

slinger2 said:

EthicsGradient said:

The Oxbury 1 year fixed term account (5.26%) no longer appears on their page for non-members; and there, the 2 year rate has gone done to 5.07% (still top of MSE's 2 year list, but MoneyFactsCompare shows "iFast Global Bank" (never heard of them) at 5.10%).

Yes, they've trimmed their rates 5.28 down to 5.23, 5.11 down to 5.07. Can't quite see the logic of the "Existing Customer" restriction for the 1 year fixed. Means you have to open something else first.

Open yes, but don't have to fund So can just open another account, as soon as you register you see the 'existing customer' accounts and can open one of those, while the other account you opened will automatically close if you don't fund it in 14 days.

jimexbox

Oxbury two year fixed is NLA. 

Bettie

Atom paying 5.15 on a 1 year fix. 

Pompeydave1967

Yes just seen that this morning , a few rises across their fixed terms.

Patr100

I'm actually surprised fixed rates haven't gone lower. But it's all relative.
Your regular reminder that  barely a couple of years or so  ago the best  annual return was less than one percent !  (though inflation rose soon after) , and  a year or so ago, when we were  looking for a new fix, many of us were hoping for as close to 5% as possible when there was an upward trajectory - but as the tide seemed to turn for a lowering of the ceiling , I fixed at around 4,75% , but you can still fix at around 5% if you do your homework, though I am now not due to refix til later next year.
But  even a drop to say 4% would be nowhere as poor as not that long ago. specially with a reduction in general inflation.