The Top Fixed Interest Savings Discussion Area

david72 · 15 October 2022 at 1:27PM

Just noticed that the current Virgin Money 1 Year Fixed Rate E-Bond Issue 500 has, like many of VM's closed-end accounts, a pre-defined end date (rather than being exactly 1 year from whenever opened). The account matures on 20 September 2023, making it now a roughly 11-month bond (therefore locking your money away for a shorter period), at a still fairly competitive 4%. Perhaps useful for smaller savers, needing only a minimum £1 balance.

(I would guess that VM are quite likely to introduce a new issue of the account, perhaps with a higher rate, on 20 October, as the 20th of the month seems to be the magic special date for them, based on certain of their other accounts?)

cloud_dog · 15 October 2022 at 1:44PM

RG2015 said:

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.

I've only added to the confusion (if there actually is any) by mixing up my non-ISA and ISA account references in my post.

I add the 25% to the ISA account for comparison purposes, and then deal with tax holistically, if applicable.

Trynsave2 · 15 October 2022 at 3:54PM

Atom 5 fixed year @ 5%
https://www.atombank.co.uk/fixed-saver/

Stevo_safc · 15 October 2022 at 7:48PM

EthicsGradient said:

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.

I've sent an email requesting to cancel so we'll see what happens.

t1redmonkey · 17 October 2022 at 12:10PM

Buckinghamshire BS 3 year bond at 4.95%. Says on Moneyfacts it can only be opened by post or in branch, but I've gone on Buckinghamshire BS's website and there is a way to open it online.