The Top Fixed Interest Savings Discussion Area

Silverbullet036

Pretty impressed with Cynergy today , saw they had improved their 1 year rate to 4.55% earlier. I was bemoaning the fact to my wife and saying I only took out the next step in our Fix rate ladder on 1st October with them at 3.90%. Received an email this afternoon saying that as my new fix rate was still within the funding window they would automatically put me on the new rate of 4.55%

Very happy indeed to hear this

Stevo_safc

I needed access to my savings in about 10 months time so I opened a 9 month fix with ICICI via Raisin @3.6%. I've just seen that DF Capital have released a 9 month fix @4%.

Upon checking the terms I can cancel within 14 days. "13.1 You have the right to cancel Your notice account without giving any reason, within 14 calendar 

days from the day of opening the account by emailing service@raisin.co.uk with the subject 

“Right to cancel”. The email must be sent from Your registered email address. "



Is this a commonly done thing or am I just being daft?

t1redmonkey

Stevo_safc said:

I needed access to my savings in about 10 months time so I opened a 9 month fix with ICICI via Raisin @3.6%. I've just seen that DF Capital have released a 9 month fix @4%.

Upon checking the terms I can cancel within 14 days. "13.1 You have the right to cancel Your notice account without giving any reason, within 14 calendar 

days from the day of opening the account by emailing service@raisin.co.uk with the subject 

“Right to cancel”. The email must be sent from Your registered email address. "



Is this a commonly done thing or am I just being daft?

Makes sense to cancel and go with the higher rate if you’re within the cool-down period.

RG2015

FishInGlass said:

ColdIron said:

Just divide ISA rates by 0.8 or multiply non ISA by 0.8

I think you mean multiply the Non ISA rate by 1.25 to get the equivalent ISA rate for a standard rate taxpayer. For a 40% rate taxpayer the multiplier would  be approx 1.67 and for 45% rate the multiplier would be approx 1.82

Non ISA savings of £1,000 @ 5.00% = interest of £50

Tax @ 20% = £10

Net income is £40.

Hence you multiply non ISA rate by 0.8 giving a net rate of 4%

cloud_dog

RG2015 said:

FishInGlass said:

ColdIron said:

Just divide ISA rates by 0.8 or multiply non ISA by 0.8

I think you mean multiply the Non ISA rate by 1.25 to get the equivalent ISA rate for a standard rate taxpayer. For a 40% rate taxpayer the multiplier would  be approx 1.67 and for 45% rate the multiplier would be approx 1.82

Non ISA savings of £1,000 @ 5.00% = interest of £50

Tax @ 20% = £10

Net income is £40.

Hence you multiply non ISA rate by 0.8 giving a net rate of 4%

There is a big assumption here that the non-ISA account will produce taxable income.

For comparison purposes I prefer multiplying the non-ISA  rate by 1.25, to give an appropriate comparison, and I then consider any tax implications.

The reason this is more appropriate/important, I would suggest, is that until quite recently you would still be better off in a taxable account (for a BRT payer) than considering ISAs.

RG2015

cloud_dog said:

RG2015 said:

FishInGlass said:

ColdIron said:

Just divide ISA rates by 0.8 or multiply non ISA by 0.8

I think you mean multiply the Non ISA rate by 1.25 to get the equivalent ISA rate for a standard rate taxpayer. For a 40% rate taxpayer the multiplier would  be approx 1.67 and for 45% rate the multiplier would be approx 1.82

Non ISA savings of £1,000 @ 5.00% = interest of £50

Tax @ 20% = £10

Net income is £40.

Hence you multiply non ISA rate by 0.8 giving a net rate of 4%

There is a big assumption here that the non-ISA account will produce taxable income.

For comparison purposes I prefer multiplying the non-ISA  rate by 1.25, to give an appropriate comparison, and I then consider any tax implications.

The reason this is more appropriate/important, I would suggest, is that until quite recently you would still be better off in a taxable account (for a BRT payer) than considering ISAs.

I am struggling a bit here.

You're saying I should multiply my non-ISA rate of 5% (for example) by 1.25 giving 6.25%.

What do I then compare this 6.25% with? 

If I pay BR tax on my interest income then I take my non ISA 5% rate and multiply by 0.8 to give 4%. Therefore I need an ISA paying more than 4% to be better off.

Ocelot

RobinhoodSavings said:

Just spoken to Coventry after waiting for 40 minutes. They’ve withdrawn all their fixed accounts. I opened the 4.40% bond with them and they told me I have until 11 November to deposit into it.
They removed their fixed rate isas as well!

Their fixed rate ISA rates were rubbish, anyway, 2.4% for 2 years.

Expotter

Just to clarify, at 20% tax

To find non-ISA equivalent to ISA rate:

 ISA rate x 1.25 (or ISA rate / 0.8 , same thing because if we remember our fractions dividing by 4/5 is equal to multiplying by 5/4)

Ex. ISA rate 4%,   4 x 1.25 =  4 / 0.8 = 5, so non-ISA equivalent is 5%

To find ISA equivalent to non-ISA:

non-ISA rate x 0.8

Ex. non-ISA rate 5%,   5 x 0.8= 4, so ISA equivalent 4%


For 40% tax, replace 0.8 with 0.6

RG2015

Expotter said:

Just to clarify, at 20% tax

To find non-ISA equivalent to ISA rate:

 ISA rate x 1.25 (or ISA rate / 0.8 , same thing because if we remember our fractions dividing by 4/5 is equal to multiplying by 5/4)

Ex. ISA rate 4%,   4 x 1.25 =  4 / 0.8 = 5, so non-ISA equivalent is 5%

To find ISA equivalent to non-ISA:

non-ISA rate x 0.8

Ex. non-ISA rate 5%,   5 x 0.8= 4, so ISA equivalent 4%


For 40% tax, replace 0.8 with 0.6

And for 45% tax replace with 0.55

EthicsGradient

Stevo_safc said:

I needed access to my savings in about 10 months time so I opened a 9 month fix with ICICI via Raisin @3.6%. I've just seen that DF Capital have released a 9 month fix @4%.

Upon checking the terms I can cancel within 14 days. "13.1 You have the right to cancel Your notice account without giving any reason, within 14 calendar 

days from the day of opening the account by emailing service@raisin.co.uk with the subject 

“Right to cancel”. The email must be sent from Your registered email address. "



Is this a commonly done thing or am I just being daft?

I am in the same position as you. However, if you're looking at the T&Cs headed "KEY ACCOUNT INFORMATION FOR ICICI BANK (UK): 9 MONTH FIXED TERM DEPOSIT", note that, despite that heading, it is talking about (from definitions) 

'“Notice Account” means a savings account offered by Us on the Platform that has the ability to increase/decrease its rate subject to a minimum notice period equivalent to the notice period on the account'

'“Fixed Term Deposit Account” means a fixed rate and fixed term account offered by Us on the Platform.'
and
'“Savings Account” means either a Notice Account or a Fixed Term Deposit Account, or both."'

 and the 14 days you quote is specifically about a Notice Account. I believe, from another thread, that the 14 day cooling off period is not compulsory for fixed term accounts, so I don't think you should get you hopes up. It wouldn't hurt to try, I suppose.