The Top Fixed Interest Savings Discussion Area

20122013

I haven't seen the post on the NatWest Fixed Rate Saver https://www.natwest.com/savings/fixed-term-savings-account.html paying 4.2% AER 

Thanks to @silvermum's post :

'You can choose to have interest paid into a Nominated Account. This must be a NatWest personal current or savings account with instant access (other than a cash ISA) held in your name at the same branch as your Fixed Term Savings Account.  (bold added by me)'

I wanted to ask how do I know which 'branch' I had opened my personal current and savings accounts ? as they were opened online?  Natwest humans are closed and chat box cannot help me. 

Middle_of_the_Road

20122013 said:

I haven't seen the post on the NatWest Fixed Rate Saver https://www.natwest.com/savings/fixed-term-savings-account.html paying 4.2% AER 

Thanks to @silvermum's post :

'You can choose to have interest paid into a Nominated Account. This must be a NatWest personal current or savings account with instant access (other than a cash ISA) held in your name at the same branch as your Fixed Term Savings Account.  (bold added by me)'

I wanted to ask how do I know which 'branch' I had opened my personal current and savings accounts ? as they were opened online?  Natwest humans are closed and chat box cannot help me. 

Put your sort code into the check tool below -
https://www.sortcodes.co.uk/sort-code-checker

trickydicky14

Middle_of_the_Road said:

20122013 said:

I haven't seen the post on the NatWest Fixed Rate Saver https://www.natwest.com/savings/fixed-term-savings-account.html paying 4.2% AER 

Thanks to @silvermum's post :

'You can choose to have interest paid into a Nominated Account. This must be a NatWest personal current or savings account with instant access (other than a cash ISA) held in your name at the same branch as your Fixed Term Savings Account.  (bold added by me)'

I wanted to ask how do I know which 'branch' I had opened my personal current and savings accounts ? as they were opened online?  Natwest humans are closed and chat box cannot help me. 

Put your sort code into the check tool below -
https://www.sortcodes.co.uk/sort-code-checker

That's very useful 

trickydicky14

DF Capital
I see they have increased 1year fix to 4.45% Two year still @ 4.41

refluxer

trickydicky14 said:

DF Capital
I see they have increased 1year fix to 4.45% Two year still @ 4.41

Further to my previous message about DF Capital, I've since made a few deposits into the 2 year fixed rate account I opened and each was credited within 2 minutes of sending (confirmation via email to say a PM has arrived in online banking) so my experience as a new customer has been very positive so far.

It's a shame they don't have a wider variety of savings accounts - just an easy access saver and those two fixed rate bonds on offer at the moment, although they did have terms up to 5 years available in recent months.

CuparLad

I was a DF Capital customer for a couple of years (albeit with an EA Account) and never had any issues. Everything just worked. I'd certainly recommend them based on my experience.

20122013

I have no income and I am working on a 5 year cash ladder and I will be reinvesting the interest. 

The fixed rate accounts I have selected ays over 4.32%  but their interest are paid on maturity or on anniversary. I want to check if  I get a: 1, 2  and 3 year fixed accounts and interests pay at the end of the term, there should be  no tax due each year as the interest for each year will be elow £12570? or would it make sense to find / use accounts which pays a lower interest rate but monthly interest? eg Natwest 4.2% ?  As I have not seen many account which is over 4% and pays monthly interest.

refluxer

20122013 said:

I have no income and I am working on a 5 year cash ladder and I will be reinvesting the interest. 

The fixed rate accounts I have selected ays over 4.32%  but their interest are paid on maturity or on anniversary. I want to check if  I get a: 1, 2  and 3 year fixed accounts and interests pay at the end of the term, there should be  no tax due each year as the interest for each year will be elow £12570? or would it make sense to find / use accounts which pays a lower interest rate but monthly interest? eg Natwest 4.2% ?  As I have not seen many account which is over 4% and pays monthly interest.

When a fixed rate account pays (credits) interest only on maturity, then it'll count as income for tax purposes in the tax year it matures.

This is also true (in theory) for fixed rate accounts that credit interest to the same account monthly or annually (where the interest isn't accessible), however the problem is that majority of UK banks and building societies report the interest as having been received when it's credited to the account to HMRC every year and, as HMRC don't know that it isn't technically accessible, it becomes subject to tax in the year it's credited instead and the onus will be on you to tell HMRC otherwise (this is a subject that often gets discussed on this forum).

However... if you have no other income, then you can actually earn up to £18,570 in savings interest without paying tax on it - this comprises of your Personal allowance of £12,570, the Savings Starter Rate of £5000 and your Personal Savings Allowance of £1000. For more info on how that works, see MSE's guide to the Starter Rate For Savings. 

BooJewels

@refluxer beat me to it - I was going to make the same suggestion - if you have no income, why not get interest paid away monthly and use this as income and you can earn up to £18,750, before you'd pay tax on anything above that. 

If you max out your ISA allowance each year and maybe put some in PBs (also tax free, max £50k holding) you'd have to have towards half a million earning interest elsewhere before HMRC would trouble you for some tax.  If you added your full allowance to ISAs each year, you'd progressively reduce your potential taxable interest.  So your 5 year plan would see £100k (depending on what Rachel does in the budget) beyond tax.

20122013

BooJewels said:

@refluxer beat me to it - I was going to make the same suggestion - if you have no income, why not get interest paid away monthly and use this as income and you can earn up to £18,750, before you'd pay tax on anything above that. 

If you max out your ISA allowance each year and maybe put some in PBs (also tax free, max £50k holding) you'd have to have towards half a million earning interest elsewhere before HMRC would trouble you for some tax.  If you added your full allowance to ISAs each year, you'd progressively reduce your potential taxable interest.  So your 5 year plan would see £100k (depending on what Rachel does in the budget) beyond tax.

BooJewels @refluxer and @masonic who had alerted me about better to get a monthly paid interest account. 

As my earlier post, the monthly interest paying account is Natwest which pays only 4.2% comparing to others which pays 4.45%.   May I check do you mean to put £50K from the total of my cash ladder into a PB? as it will be tax free and can withdraw  anytime to fund my yearly ISA allowance or whenever I need the money?   

If I my total interest will be below the  £18,75 pa figure, would it be better to get bank interests guarantee or PB prizes (tax free)?